A person looking for real estate broker insurance may be surprised by the different types of insurance policies that are available. Errors and omissions (E&O) insurance is typically the first insurance coverage that comes to mind for many real estate professionals as it is responsible for covering claims that are a result of errors, omissions, or negligence on their part. While some real estate broker insurance policies are specific to the real estate industry, such as E&O insurance, there are several insurance policies that are just as important to every business owner regardless of his or her industry.
In addition to E&O insurance, real estate broker insurance coverage must also consist of a worker’s compensation policy. Even though real estate agents are independent contractors and are not considered employees by law, it is still their responsibility to have adequate coverage by law in order to compensate agents and employees in the event that they are unable to complete their job duties. Corporate general liability insurance is another type of real estate broker insurance coverage. This policy is responsible for insuring the real estate broker against any liability that may be caused by the broker or his or her agents.
Business interruption insurance is another type of real estate broker insurance, as this policy insures the broker against the loss of business revenue that may result if the business loses the ability to operate due to an unforeseen interruption, like a natural disaster. In the event that a hurricane or tornado decimated a particular city or town, for example, a real estate broker may be unable to generate revenue because of the physical damage to the properties within the city. This insurance coverage would ensure that broker could continue to operate until the business is able to generate revenue in the future.
A type of real estate broker insurance policy that is often overlooked is life and disability insurance. This type of insurance will protect the business against the death or disability of a critical employee, which in most cases will be the real estate broker himself or herself. Many real estate brokers will also need to acquire health insurance policies for themselves as well as their agents. Moreover, real estate brokers will need to acquire property and casualty insurance in order to obtain coverage against the loss of damage to the business as an entity as well as the physical location of the business.