That’s why many real estate agents turn to insurance to help protect themselves from potential risks.
Whether you’re a sole trader or managing an agency, having the right insurance can be an important consideration.
Professional Indemnity insurance, in particular, is a must-have for many professionals who provide services or advice to clients.
BizCover is Australia’s number one online business insurance service.
Here’s a real-life example of a Professional Indemnity claim from a BizCover customer.
Could this happen to you?
Mistakes, accidents and professional negligence
Professional Indemnity insurance is a mandatory requirement for real estate agents in some states.
However, obtaining Professional Indemnity insurance is about more than just ticking a box.
It can also provide protection against third-party claims that arise due to alleged or actual negligence in your professional services or advice.
This is a real-life claims example that could happen to anyone.
Issues with a property’s back decking were raised by tenants during a routine inspection.
The real estate agent then notified the owners of the issue. However, nothing was done to investigate the damage to the deck or to organise repairs.
Months after the problem had been raised, the tenant of the property stepped on a portion of the deck which gave way.
The tenant fell through the decking and was taken to hospital. After several scans, it was discovered that the tenant had soft tissue damage as a result of the fall.
Because of the injury, the tenant was unable to go to work.
The real estate agent was found to be liable for the incident.
Luckily, they held Professional Indemnity insurance. Once the claim was settled, the insurer paid out a total amount of $238, 248.
Can you afford not to have cover?
Settling claims can be expensive, regardless of whether or not you’re at fault. Professional Indemnity insurance is designed to provide essential cover to help protect your business’s finances and reputation.
However, there are other types of insurance you may also wish to consider.
Public Liability insurance
Accidents can happen anywhere, whether you’re working from your office, meeting with clients at a public venue or showing a property.
Public Liability insurance is there to cover you if a third-party claims that your negligent business activities caused them injury or property damage. This includes defence costs cover.
Cyber Liability insurance
Cybercriminals are increasingly focusing on small businesses, and real estate agencies are prime targets.
Cyber Liability insurance is designed to help protect you from claims and support your profitability in the event of a cyber breach or attack.
Costs associated with defending a cyber claim are also covered.
Management Liability insurance
If you own or are involved in the management of a company, then you may wish to consider Management Liability insurance.
Owners and those responsible for the management of a company have specific responsibilities which can result in personal liability for alleged or actual wrongdoing.
Management Liability insurance can help to protect directors and officers and the insured company itself from the many exposures relating to the management of a company.
Protect your agency with BizCover
Business insurance for real estate agents can help you manage the various risks your agency faces.
But finding the right insurance and comparing quotes doesn’t have to be a long, complicated process.
BizCover is here to make it easy to find, quote and purchase small business insurance.
Visit the website today or call BizCover on 1300 805 821.
