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Is General Liability Insurance Required for Real Estate Companies?

Feb 09, 2023

Business insurance

Is General Liability Insurance Required for Real Estate Companies?

Real estate companies often work with the public. They show the property to buyers and have visitors (both buyers and sellers) at their workplaces. All these come with risks of third-party liabilities and claims. These incidents not only make you financially responsible but may also spoil the reputation of your business with civil litigation. This is why general liability insurance is essential. It covers liability incidents and resulting losses, so you can work with peace of mind.

How Does Liability Insurance Help Real Estate Agents?

A general liability insurance policy can rescue real estate companies or agents from various third-party claims that could result in expensive lawsuits and settlements, including:

Bodily Injury Claims

Liability insurance covers medical expenses of third-party (vendor, client, or customer) if they suffer accidents or injuries on your premises or by your employees or business operations, which may include:

  • A client sustains an injury while viewing a property
  • A customer slips on a wet or uneven surface and sustains bodily injuries while visiting your office
  • If your employee accidentally spills hot coffee on one of your clients during a meeting

While compensating the injured, the liability policy covers your legal fees if you are sued for such incidents.

Property Damage Claims

Liability insurance covers repair or replacement costs of a third-party’s property that is damaged by you or your employees.

Third-party property damage Incidents include:

  • Overcrowding or falling off your outdoor sign damaging your client’s bike or car
  • If you accidentally damage your client’s (either a landlord or buyer) property while showing a real estate property to a prospect
  • If one of your staff accidentally collides with your client (while at your office), damaging their wristwatch or mobile phone

Personal or Advertising Injury Claims

To make your business popular among real estate buyers and sellers, you will be doing lots of marketing and campaigning. Sometimes, unwittingly, you might end up using a logo or slogan of another company, thus being sued for infringing their company information. Likewise, you might be accused of defamation (damaging the good reputation of someone or a company).

However, liability insurance will have you covered against various advertising claims like the above-mentioned ones, including:

  • Libel
  • Slander
  • Reputational harm
  • Patent/trademark violation

What Is Not Covered by Liability Insurance?

General liability insurance does not cover real estate agents against the following claims:

  • Employee injuries (for this, you may need workers’ compensation coverage)
  • Auto accidents (commercial auto insurance)
  • Equipment breakdown or theft (commercial property insurance)
  • Theft or loss of office property (business personal property insurance)
  • Professional errors (errors & omissions insurance)

Even if you follow best-in-class precautionary measures in your company, you cannot completely prevent risks, as an unfortunate event can happen all of a sudden. This is why general liability is crucial to protect your business from any potential liabilities or claims. Along with general liability insurance, you can buy the above-recommended policies to ensure ultimate protection for your business.

Cover Your Business Against Third-Party Liabilities with Fuller Insurance

At Fuller Insurance Agency, we offer comprehensive general liability insurance to protect your business against unprecedented events now and in the future. Contact our insurance professionals today to find the best liability policy that ensures unmatched protection.

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