The real estate industry encompasses activities such as buying, selling, renting, and managing residential, commercial, and industrial properties. Professionals in this field, including agents, brokers, and property managers, navigate unique risks and liabilities that require tailored insurance solutions.

Industry Overview

Due to operational interruptions, real estate businesses face risks including property damage, liability claims, and income loss. To protect against these vulnerabilities, real estate professionals need specialized insurance coverage. Below are key types of insurance they should consider:

Essential Insurance Types for Real Estate Businesses

Property Insurance: Protects against damage or loss to the company’s physical assets, including buildings, equipment, and properties under management.

General Liability Insurance: Covers claims of bodily injury or property damage resulting from the company’s operations or events on its premises. For example, it may cover medical expenses if a client is injured during a property showing.

Professional Liability Insurance (Errors and Omissions Insurance): Protects against claims related to mistakes, misrepresentations, or negligent advice in professional services, such as incorrect property valuations or contract errors.

Cyber Liability Insurance: Provides coverage for losses stemming from cyberattacks or data breaches, protecting sensitive client and business information.

Workers’ Compensation Insurance: Covers medical expenses, lost wages, and legal fees for employees injured while on the job.

Business Interruption Insurance: Compensates for lost income and operating expenses due to unforeseen interruptions, such as natural disasters or fires that affect the company’s operations.

Employment Practices Liability Insurance (EPLI): Provides protection against claims of workplace discrimination, harassment, wrongful termination, or other employment-related issues.

Tailored Risk Management

The specific insurance needs of a real estate business vary based on its size, operations, and scope. For instance:

• A real estate brokerage may prioritize professional liability and cyber insurance.
• A property management firm may focus on property insurance and general liability.

Key Consideration

Working with an experienced insurance professional is essential for evaluating risks and customizing coverage to align with the business’s specific requirements. This ensures protection against liabilities while enabling smooth operations in a dynamic industry.