When you own a real estate brokerage, you likely need a Business Owner’s Policy, to combine general liability insurance with commercial property insurance. But not all Business Owner’s Policies are created equal. Real estate brokers need to be thorough when comparing policies to ensure you find the best possible fit for your brokerage. In this blog,We explore what real estate brokers should look for when choosing an insurer. We also take a look at the employee vs independent contractor dynamic that may influence what insurance a broker needs.
Consideration #1: What is included in the Business Owner’s Policy?
Business Owner’s Policies differ greatly between insurers. When comparing policies, it’s important to look at what each policy is offering. CRES Business Owner’s Policies offer comprehensive coverage, combining:
- General Liability (to protect you if someone is injured or if their property is damaged as a result of your covered business activity).
- Building and Property Coverage (covers repairs to your building and equipment replacement if there is a fire, theft, or other casualty).
- Loss of Business Income (to help you cover ongoing expenses for covered claims if you can’t use your regular office.)
- Equipment Breakdown costs to replace or repair equipment damaged from power surges, mechanical breakdown, burnout, or operator error.
- Personal and Advertising Injury to help you defend against lawsuits for copyright infringement, libel, and slander.
- Medical Payments to cover expenses for third-party injuries that have occurred at your premises.
Some insurers like CRES offer added extras that can make life easier for brokers. For example, CRES Business Owner’s Policies even cover a temporary office to keep your business running while your building is being repaired.
Consideration #2: What is EXCLUDED from the Business Owner’s Policy?
Checking what a Business Owner’s Policy excludes is as important as checking what it includes. Sometimes insurance policies have exclusions in the fine print that can make a big impact on a real estate broker’s business. You may think you’ll be covered for a particular situation and end up being sorely disappointed to find out you aren’t. It’s essential to examine the exclusions in detail before choosing your policy.
Consideration #3: Can your insurer customize the insurance policy?
There is great value in choosing an insurer that can customize a policy specifically for your business. Not all insurers offer this opportunity, and you could be forced to purchase an ‘off the shelf’ solution and try to match it with your business needs. At CRES, we understand that every business is different and it’s important to be able to tailor an insurance solution to your particular real estate brokerage.
For example, you can add additional coverage such as a Cyber Liability Policy to protect your brokerage against cyber threats.
We know that some real estate brokers have a team of employees. In that scenario, we can add a Workers’ Compensation Policy to your Business Owner Policy to ensure your team is covered. If you instead have a team of contractors, you will still need a Workers’ Compensation policy in California to cover your contractors. In other states, you may not need a Workers’ Compensation Policy — independent contractors may need to have their own insurance. CRES can customize your Business Owner’s Policy to suit your individual needs. We can also assist your team of independent contractors with insurance solutions to cover their business activities as well.
Consideration #4: What kind of reputation and network does the insurer have?
When comparing Business Owner’s Policies, consider the reputation of the insurer and how long they’ve been in business. You don’t want to be disappointed with your choice of insurer at the point of claim. A poor choice can cost you time and money, and it can result in irreparable damage to your business.
CRES has been providing insurance protection for real estate brokers nationwide for more than 25 years. We have unparalleled access to more Business Owner Policy options to ensure we can find you the best coverage at the best price. CRES is part of one of the largest insurance brokers in the world, Arthur J. Gallagher.
Consideration #5: What will give you the best value for your money?
Purchasing a new insurance policy is a business decision and price is obviously a factor. However, brokers should weigh all the benefits and choose the policy that can offer the best value for the money. Be sure your business is adequately protected for your insurance investment. At CRES, we will do the shopping for you, with our access to more insurance options for real estate brokerages than just about anyone else.
Protect Your Real Estate Brokerage
Insurance is an essential part of any real estate broker’s risk management strategy. Contact the friendly CRES team at 800-880-2747 today. We look forward to customizing a Business Owner’s Policy to suit your individual needs.
