Selling real estate requires flexible hours and good negotiation skills. When you're shopping for real estate insurance, you want coverage types that are just as flexible for your business needs.
A common way to combine several coverage types into one policy is with a business owners policy (BOP). This typically includes business liability insurance, business interruption insurance, business property insurance and customizable coverage types.
Basic real estate agent insurance coverage types
Business liability insurance
This covers you in case of property damage and injury lawsuits against you. For example, you might accidentally break something while showing a house.
Commercial property insurance
This covers your building and your contents, which could include computers and office furniture. Problems typically covered by the policy are fire, hail, theft, vandalism and more. Signs and outdoor fences are also usually covered. If you have an office in your home, you might consider an in-home business policy or an endorsement to your home insurance policy. Keep in mind, these typically have less coverage options and lower policy limits.
Business interruption insurance
If a problem covered by the policy, like vandalism or a fire, caused you to temporarily close or relocate business, this helps cover expenses. It can also help replace lost business income.
Additional real estate agent insurance coverage types
Commercial auto insurance
This covers the vehicle you use for work, like driving to showings and meeting with clients. Personal auto insurance generally won't cover accidents while you're working.
Hired and non-owned auto insurance
If you rely on rented, used or borrowed vehicles for work, this covers property damage and injury claims for vehicles you don't own. For example, if an employee uses their vehicle to drive clients to showings.
Errors and omissions insurance
Also known as professional liability insurance, errors and omissions real estate insurance covers lawsuits that allege you did not provide an expected or promised service. For example, a client might say that your bad advice resulted in a poor investment and caused financial loss. Errors and omissions insurance typically provides the cost of a legal defense, judgments and settlements, even if the claim is groundless.
Workers compensation insurance
If an employee becomes sick or injured from work-related tasks, this covers medical expenses and some of their lost income.