There were 48,060 real estate brokers in the US in 2022. As a real estate broker, you need to protect your business financially now more than ever. One way to do that is through a comprehensive insurance policy. Consider getting insured because you’ll need adequate coverage just like real estate agents.
By getting covered, you can rest easy even if you get involved in a lawsuit with a real estate investor. You can also use your insurance policy to cover financial losses in case the office gets damaged or destroyed. Continue reading to get answers to your questions about real estate broker insurance
|CoverWallet||NEXT (Best)||Thimble||Hiscox||The Hartford|
|Per occurrence limit||$1,000,000||$1,000,000||$1,000,000/$2,000,000||$300,000/$1,000,000||$1,000,000/$2,000,000|
|Products and completed operations aggregate limit||$2,000,000||$1,000,000||$1,000,000||$1,000,000||$1,000,000|
|Advertising injury coverage aggregate limit||$1,000,000||$1,000,000||$1,000,000||$1,000,000||$1,000,000|
|Tenant’s legal liability coverage limit||$100,000||$100,000||$5,000||$100,000||$1,000,000|
|Waiver of subrogation included?||Yes||No||Included||Can be included||No|
|Hired/non-owned auto liability coverage included?||Yes||No||Excluded||Can be included||Can be included|
|Equipment breakdown floater included?||No||Yes||Yes||Can be included||Can be included|
General liability insurance for real estate brokers is a policy that protects you from third-party injury and property damage claims. Some situations to use this policy include:
A customer slips and falls while walking on your business property
While helping a customer, one of your employees accidentally damages their personal property
A real estate broker can further customize his policy by adding on additional insurance protection. Some examples include:
Employment practices liability–Adds protection for discrimination, harassment, and wrongful termination claims from employees
Tools and equipment–This coverage helps protect tools and equipment used for business when they are damaged or stolen in covered events
The coverage limits for this real estate broker liability insurance will often vary but are typically at $1 million per occurrence and $2 million in aggregate for the policy term.
Generally, the price of general liability insurance is based on the amount of risk in your business, the size of your business, its financial position, and the size of your employee payroll.
|CoverWallet||NEXT||Thimble (Best)||Hiscox||The Hartford|
|Per occurrence limit||$1,000,000||$1,000,000||$1,000,000/$2,000,000||$1,000,000||$1,000,000|
|Name additional insureds?||Yes||Yes||Yes||Yes||Yes|
|Waiver of subrogation included?||Yes||No||Yes||Can be included||No|
Professional liability insurance for real estate brokers is a type of insurance policy that protects against mistakes, errors, and negligence in your business practices. Examples of when coverage can apply include:
A client lawsuit accused you of failing to provide adequate services
A mistake that one of your real estate brokers made caused the customer to lose money.
Real estate broker e&o insurance is another name for professional liability insurance. Real estate broker errors and omissions insurance protects from a variety of different kinds of claims like:
Breach of contract
Failing to maintain listings
Mistakes in drafting sale documents
Not keeping client matters confidential
Additional insured–This allows you to add other parties to your insurance policy that are not part of the original coverage. Typically additional insured parties have more limited protection unlike the policyholder
Excess liability–Allows you to purchase additional coverage beyond the coverage limits of your real estate broker professional liability insurance policy
The coverage limits of real estate broker e&o insurance are $250,000 and $2 million per occurrence and aggregate.
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|CoverWallet||NEXT (Best)||Thimble||The Hartford||Hiscox|
|Building coverage limit (minimum)||$50,000||$330,000||$25,000/$500,000||$60,000||$25,000|
|Contents coverage limit (minimum)||$50,000||$35,000||$25,000/$500,000||$60,000||$15,000|
|Money and securities||Excluded||$2,500||$1,000||Excluded||Included|
|Lock and keys||Excluded||$2,500||Excluded||Excluded||Included|
|Business interruption floater||Excluded||Included||Included||Excluded||Included|
|Equipment breakdown floater||Excluded||Included||Excluded||Excluded||Included|
|Inland marine insurance floater||Excluded||Excluded||$10,000||Excluded||Excluded|
|Employee dishonesty floater||Excluded||$5,000||$2,500||Excluded||Excluded|
Commercial property insurance protects your building and the property contained within it. Some situations where this insurance is used include:
A fire breaks out on your business property
Severe windstorms damage some of your equipment
A criminal breaks into your office and steals some electronics
Some add-ons to consider include:
Flood insurance–Provides protection from floodwater damage that might not be covered in a standard commercial property policy
Equipment breakdown–Covers damage from internal forces on your equipment from things like mechanical failure or power surges
A typical coverage limit for commercial property is around $60,000. Your coverage limit is calculated based on the value of your commercial property.
Commercial property insurance automatically offers a home-based business policy wording. This means that the policy will treat your home as a commercial property so long as a covered peril happened while it’s being used for business operations.
Typically no. You would need commercial auto insurance to cover liabilities and damage to your business vehicles. Commercial property insurance will cover property like equipment and supplies that are stored at your business premises.