General liability for real estate businesses

Every company that works with the public can benefit from general liability coverage, and real estate businesses are no exception. General liability insurance assures your clients you can cover expenses in the event of an injury or property damage claim.

This policy covers three types of third-party claims:

• Bodily injuries
• Property loss or damage
• Personal and advertising injuries

While a general liability insurance policy isn't typically required by law, real estate agent insurance policies like this are carried by many professionals to meet business requirements and protect their operations. However, depending on the state, general liability insurance may be required to obtain or maintain a real estate license.

In some cases, brokerages may also require agents to provide a certificate of insurance (COI) before they can begin working or conducting business under the brokerage.

General liability, sometimes called public liability insurance, can also help real estate agents, brokers, and property managers meet client contract requirements, lease agreements, and other professional obligations.

Real estate professionals can often save money on business insurance by bundling commercial general liability with commercial property insurance in a business owner’s policy (BOP). Businesses 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.

Real estate professionals interact with clients, vendors, property owners, and members of the public every day, creating a variety of liability risks.

Business liability insurance typically provides protection from:

There's always a chance that someone could be injured at your office or during a property showing. For example, if a prospective buyer slips and falls at an open house and sues your business, you could be responsible for legal and medical expenses.

General liability can help cover:

• Medical bills
• Attorney’s fees
• Court-ordered judgments
• Settlements
• Funeral expenses in fatal incidents

However, this policy doesn't cover employee injuries. For that, you’d need workers’ compensation insurance.

General liability insurance can cover damage to client or customer property, including the cost of repairing or replacing an item.

If you damage an expensive sculpture while showing a client's property, for example, it would help cover the cost of the sculpture or legal fees if the client sues.

Coverage typically includes damage to property or premises rented to you or occupied temporarily, which can be useful when real estate agents show or stage properties they don't own.

If you advertise or use social media for business purposes, your real estate business could be exposed to advertising injury claims. General liability covers accidental advertising injuries, such as a lawsuit over a logo that looks similar to that of a competitor.

It can also pay legal fees related to:

• Defamation, both libel (written) and slander (spoken)
• Brand / copyright infringement

While general liability covers common real estate risks, it doesn't provide complete protection. Other policies for a strong risk management plan include:

Errors and omissions insurance: Also called professional liability insurance or E&O, this policy can cover legal costs of lawsuits related to a real estate professional's advice, services, and business decisions.

Commercial auto insurance: This policy covers vehicles owned by your business. It typically pays for accidents and damages related to theft, weather, and vandalism. If you or your employees regularly use personal, rented, or leased vehicles, then you'd need hired and non-owned auto (HNOA) insurance since a personal auto policy won't cover work-related claims.

Commercial umbrella insurance: 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. Similarly, an excess liability insurance policy can also extend your coverage on either a general liability or E&O policy, once the underlying policy's limit is exceeded.

Cyber insurance: This policy helps real estate businesses survive data breaches and cyberattacks. It can help cover client notification expenses and other associated costs.

Building insurance: This policy covers physical damage to buildings owned by your real estate business from covered events such as fire, theft, or certain weather-related incidents.

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

Surety bonds: Real estate professionals 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 safeguard your real estate business with general liability insurance?

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 general liability 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.