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Do Real Estate Professionals Need Small Business Insurance?

Updated: September 2018

If you're a real estate agent, a combination of small business insurance coverages may help protect you from financial losses caused by lawsuits, injuries, or property damage.

An experienced business insurance agent can help you put together a solid policy that fits your needs, whether you're a broker or a property manager. Some key coverages for real estate professionals to consider include the following:

Couple talking with real estate agent.

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BUSINESS PROPERTY COVERAGE

If you have a real estate office or building, business property coverage can help protect your company's physical structure if your business experiences a covered loss. Those losses can vary according to your policy, but generally include things like vandalism, fire or windstorms, up to your policy's specific limits. According to the Small Business Administration (SBA), property insurance also helps cover what's inside your office. For you, that might include computers, furniture, brochures, lawn signs and much more.

GENERAL LIABILITY COVERAGE

If a mishap at your place of business results in another person's medical costs or damage claims, liability coverage may prevent you from paying out of pocket, up to your policy's limits. For example, if a potential buyer slips and breaks her arm while visiting your office, this coverage could help protect you. This insurance could also help pay repair costs (and legal fees, if applicable) if your real estate office is found liable for damage at a seller's property.

BUSINESS AUTO COVERAGE

If you use a vehicle registered to your business - such as a truck for carrying repair equipment to rental properties, or a dedicated car for driving to properties with clients - you may need a business auto policy. Depending on what coverages you select, this insurance can help protect you against a range of losses, from an accident to auto theft.

ADDITIONAL INSURANCE COVERAGES FOR REAL ESTATE PROS

  • Data compromise coverage
  • If customer, renter, or vendor personal/financial information is lost or stolen, this coverage can help pay for data recovery, credit monitoring, and related services.
  • Valuable paper and records coverage
  • Although much of your data is likely electronic, you may still store certain important contracts and files on paper. If these paper files are damaged or destroyed, this coverage can reimburse you for recreating them.
  • Employment practices liability coverage
  • If you have employees, this coverage can help protect you against legal action by current or former workers.
  • Business interruption coverage
  • A covered event like fire that destroys your office, computer and records could force you to temporarily shut down your real estate business. If so, this insurance could help provide a replacement income stream for your business (based on past profit records), up to your policy limits.

For more information, talk to a business insurance agent about the coverage options available for your real estate business.

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This content is for informational purposes only and may not be applicable to all situations.

Coverage subject to terms, conditions, and availability. Policy issuance is subject to qualifications. Allstate Insurance Company, Allstate Indemnity Company, Allstate Fire and Casualty Insurance Company, Allstate Property and Casualty Insurance Company, Northbrook, IL. © 2019 Allstate Insurance Company, Northbrook, IL.
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