The real estate market in Arizona is booming and there are currently about 75,000 licensed real estate agents and brokers operating in the state. Many either work for or do independent contracting through a real estate firm.
If you own a real estate agency in Arizona, you can protect your business’s finances by investing in a comprehensive real estate firm insurance policy package. A local independent insurance agent can make shopping for coverage easy.
What Could Go Wrong at a Real Estate Firm?
As with any business, real estate firms face potential hazards that can prove quite costly in the absence of insurance. For instance, consider how your agency would handle the financial costs associated with the following scenarios.
- A client comes into your office to sign paperwork and is severely injured after tripping on an uneven stair tread.
- One of your agents is sued after selling a house without disclosing that it had experienced significant flood damage the year prior.
- Your agency is in the path of a freak tornado and everything in the office is destroyed.
- Hackers use social engineering techniques to break through your company’s firewall and access your computer system. They steal client information that they use to commit identity theft and your business is sued.
These are just a few of the many things that can go wrong. Having the right insurance in place ahead of time can help your real estate agency cover these losses so that it can remain financially stable and profitable.
What Is Arizona Real Estate Firm Insurance?
Real estate firm insurance isn’t an actual policy. It is just a general term used to refer to a business owner policy (BOP) or business insurance policy package that has been customized to meet the specific coverage needs of a real estate agency.
Independent insurance agents can help you get comprehensive real estate firm coverage at a competitive price.
How Much Does Real Estate Firm Insurance Cost in Arizona?
The cost to cover your real estate firm can vary according to several different factors such as the following.
- The size of your business and its expected annual revenues
- Whether you own or rent the building in which your business is housed
- The value of your company-owned assets
- Whether your firm owns and manages rental properties as well as sells homes
- The number of people you employ and the jobs they do
- Whether your firm has any company-owned vehicles
- The types of coverage you want to purchase
- The amount of coverage you want to purchase
- Your real estate firm’s claims history
- The size of your deductible
The only way to find out how much a policy will cost your business is by contacting a few insurance companies and requesting customized quotes. Independent insurance agents can save you time and money by doing the comparison shopping legwork for you.
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What Does Real Estate Firm Insurance Cover?
Because business insurance policy packages are fully customizable, your real estate firm insurance can cover as much or as little as you want it to.
A local independent agent can advise you about which policies are a good fit for your firm. Examples of some of the policies your agent may recommend include the following.
- Commercial property insurance: This is designed to cover your business-owned property if it is lost or damaged by a covered event like theft, fire, or severe weather. Your coverage will have two parts:
- Building insurance: This is necessary only if you own the building in which your firm is housed. It can cover the repair of structural damage.
- Contents insurance: This covers the business property you keep in your firm’s office(s) such as furniture, computers, filing cabinets, and décor.
- General liability insurance: This is designed to cover legal defense fees, court costs, settlements, judgments, arbitration fees, and other costs associated with liability lawsuits if your firm is sued for a covered event. Examples include if a client is injured while in your offices, if your firm is accused of copyright infringement, or if a competing agency sues your business for libel or slander.
- Commercial vehicle insurance: This is necessary only if your real estate firm owns and operates motor vehicles, such as if you have a company car or fleet of cars that your agents can use when showing houses.
- Non-owner car insurance: In most cases, real estate agents and appraisers use their own personal vehicles. If these individuals are responsible for a collision while doing their jobs, their car insurance may not provide coverage and your firm can be held liable for costs. Non-owner car insurance will cover accidents that occur in privately owned vehicles while your agents are working.
- Professional liability insurance: This is designed to cover your agents, brokers, and appraisers if they are sued by a client for errors in judgment or other professional mistakes that result in financial losses, injuries, or other damage for their clients.
- Workers’ compensation insurance: If you have employees in Arizona, you must cover them with workers’ compensation insurance. In some cases, real estate agents are considered independent contractors and would not need to be covered, but you would still need to cover your office staff. If you are uncertain about who does and does not need to be covered, you can consult your local insurance agent.
- Cyber liability insurance: Your real estate firm is likely to store personal and financial documents regarding your buyers, sellers, and renters. If your computer system is hacked by cybercriminals, this information can get into the wrong hands and can be used to commit identity theft and fraud. Cyber liability insurance can cover your financial obligations to affected individuals if this happens.
There are additional policies and coverage options that may be a good fit for your Arizona real estate firm. Local independent agents can do a complete risk assessment of your business to identify all of its potential risks and can then recommend the appropriate policies to cover against each of them.
How an Independent Insurance Agent in Arizona Can Help You Find the Right Coverage
If you are looking for the best and most affordable insurance coverage for your real estate firm, look no further than a local independent agent. These agents can do a complete risk assessment of your business and can recommend the right policies to ensure that your firm is fully covered.
There are more than 400 independent agents in Arizona so it should be easy to find an insurance agent with an office near you. Set up a one-on-one consultation to learn more.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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