Business owner’s policy for real estate businesses

A business owner’s policy or BOP protects real estate professionals from third-party liabilities and property damage by combining general liability insurance and commercial property insurance. Since real estate jobs are typically low-risk, your business may qualify for a BOP.

This policy covers common risks including:

• Lawsuits over customer injuries or property damage
• Advertising injuries and copyright infringement
• Damaged business property

A business owner's policy is a good fit for many real estate professionals, including independent agents, brokers, property managers, and real estate firms that operate from a dedicated office or regularly meet with clients. Businesses that own office equipment, furniture, signage, or other valuable property can benefit from the property coverage included in a BOP.

Home-based real estate businesses may also need a BOP, especially if they have business property to protect or want coverage for lost income after a covered property loss.

Because homeowner's insurance typically provides limited coverage for business-related losses, real estate professionals should consider a BOP for broader protection. However, some may only need business personal property (BPP) coverage added to a general liability policy.

Larger real estate businesses and those with more complex risks may need a commercial package policy (CPP) instead. A CPP offers greater flexibility and can be customized with additional coverages and higher limits.

Real estate professionals can often save money on business insurance by bundling liability and property coverage in a business owner’s policy. A BOP can also include business interruption insurance, which helps cover lost income after a covered property loss.

Businesses that are eligible for a BOP typically:

• Have fewer than 100 employees
• Have a small office or workplace
• Make less than $1 million in annual revenue
• Operate in a low-risk industry
• Need less than 12 months of business interruption insurance

Talk to a licensed Insureon agent to find out if your real estate business qualifies for a BOP.

Real estate professionals face risks both when working with clients and when managing their own business property. A business owner’s policy can help real estate professionals protect their businesses and help with the costs of lawsuits and repairs after a covered loss, such as:

Real estate agents, commercial landlords, and other real estate professionals work with the public on a regular basis, which means more exposure to risks. A business owner’s policy helps cover third-party lawsuits related to:

• Physical injuries, such as a potential customer tripping during a home tour
• Property damage, such as an agent breaking a valuable item during a home staging

The general liability portion of a BOP protects against advertising injuries. For example, if an employee at your real estate agency makes a false claim about a competitor on social media, this policy could help pay the cost of a lawsuit if your competitor sues. It can also help cover suits related to:

• Written defamation (libel)
• Spoken defamation (slander)
• Copyright infringement

The property coverage portion of a business owner’s policy protects your office, furnishings, and equipment in the event of damage, theft, or loss. A BOP can help pay for business property loss or damage caused by:

• Fire
• Windstorms
• Theft
• Vandalism

While a BOP covers many common real estate risks, it doesn't provide complete protection. Other insurance policies to consider as part of a risk management plan include:

Commercial auto insurance: This policy covers vehicles owned by your business. It typically pays for accidents and damages related to theft, weather, and vandalism.

Commercial umbrella insurance: Provides additional coverage for liability claims made on general liability, commercial auto, or employer’s liability insurance, once a policy's limit is reached.

Errors and omissions insurance (E&O): Also called professional liability insurance, this policy can cover legal costs of lawsuits related to your business decisions.

Workers’ compensation insurance: Workers' comp is required in almost every state for real estate businesses that have employees. It can cover medical expenses for work injuries.

Lessor's risk only insurance: Also referred to as LRO, this policy protects commercial landlords from tenant lawsuits over property damage and injuries.

Building insurance: This policy offers financial protection against property damage for landlords who rent buildings to commercial tenants.

Surety bonds: Real estate agents and brokers sometimes need a surety bond to get licensed in their state. It acts as a financial guarantee they'll comply with contract terms and regulations.

Are you ready to protect your real estate business with a business owner's policy?

Simply complete Insureon’s easy online application today. We partner with top-rated U.S. insurance companies to get you the best business liability insurance. You can also consult with an insurance agent on the types of business insurance you need, and how to get affordable coverage within your budget.

Once you find a policy that fits your needs, you can begin coverage and access your certificate of insurance (COI) in less than 24 hours.