Realtors can be sued for fraud and negligence in performance of duties.
Here are just a few reasons why agents are sued, as well as good reasons to have real estate agent insurance:
- Not disclosing a property defect
- Breach of duty
- Not recommending that a home be inspected by a professional home inspector
- Representing clients in unfamiliar territory
- Giving legal advice
- Misleading clients by exaggerating
- Breach of contract
- Hackers stealing your clients’ confidential data
- Clients hurting themselves while viewing a home or at a showing
What would you do if you were served with a liability suit for more than your current insurance covered?
Thankfully, here at InsuranceHub, we have experience helping realtors like you. We understand the liabilities involved in listing, advertising, promoting and arranging the sale of land, homes and commercial buildings. We also understand the liabilities that come from suggesting and recommending auxiliary services like mortgages, home inspectors and appraisers.
Types of exposure that Realtors and Real Estate Agencies need to protection from:
Property exposure: Do you have a real estate office? Then you must be concerned about the impact of fire, smoke and water damage on your computers, records and files of your clients.
Crime exposure: Make sure you check the backgrounds of all new employees before hiring them. Protect the confidential financial information of your clients. Install a security system and cameras on your office. Make sure that you lock and secure your clients homes that you are representing.
Inland marine exposures: Protect your accounts receivable, computers and valuable papers and records. Build processes that create duplicates of all important records and store them off site.
Premises liability exposure: Do you have clients come into your office to drop off or sign paperwork? Make sure that you keep all exits, entries and floors clear of debris. Clean up spills immediately to prevent slips and falls.
Off-premises exposures: When you go to clients homes for visits, inspections, open houses, etc, be sure to lock up and secure the place when leaving. Make sure lock boxes are available to prevent access by unauthorized people.
Professional liability exposure: Do you recommend other services to clients? Make sure you check their credentials and reputation before introducing them to your clients. Check backgrounds of the people you hire that will be handling confidential client information. Recheck all paperwork and documents after your employees do their work.
Automobile exposure: Be sure to check DMV records before hiring new employees and allowing them to use company vehicles. Do you have written procedures in place for employee use of company vehicles?
Workers compensation exposures: Teach all office employees to ergonomically use computer stations to avoid repetitive stress injuries. Exposures also include meeting strangers at their homes or at empty houses. Do you walk properties that have steep properties? Be careful of falling or twisting your ankles.
Here is the minimum recommended Realtor insurance coverage:
- Business owners policy
- Business Personal Property
- Business Income with Extra Expense
- Employee Dishonesty
- Accounts Receivable
- Money and Securities
- Valuable Papers and Records
- General Liability
- Employee Benefits Liability
- Professional Liability
- Errors and omissions
- Commercial Umbrella Liability
- Hired and Non ownership Auto Liability
- Workers Compensation
- Cyber insurance