Like any profession, real estate agents must protect themselves from mishaps that may occur during the regular course of business. Real estate broker insurance policies are the best way agents can protect themselves. Here are the four types of insurance every agent needs.
1. General Liability Insurance
General liability insurance protects your agency from injuries that may occur to a client while on your property. It can also protect you from lawsuits that result in property damage.
2. Professional Liability Insurance
This type of liability insurance covers legal costs when you make a professional mistake that negatively affects the client. For example, if certain paperwork is filed late or improperly and a real estate deal falls through. Since legal costs alone can close a small agency, make this consideration a priority. The policy is often called errors and omissions coverage.
3. Umbrella Coverage
When you hit your policy limit with your other coverages, umbrella coverage, as the name implies, covers the rest. It supplements regular liability coverage and protects you by paying whatever your other coverage does not.
4. Car Insurance
You may think you are already covered by your current car insurance, but that may not be true. If you do a lot of business driving, as real estate agents often do, your personal coverage might not cover you while you’re on business. Contact your insurer to make sure you’re covered.