The housing market in the Magnolia State is booming. According to the National Association of Realtors®, the Mississippi real estate industry accounted for $16.7 billion in sales in 2020. This is 14.6% of the entire gross state product (GSP).
If you own a real estate agency in Mississippi, you can protect your business’s finances by investing in a suitable real estate firm insurance policy package. A local independent insurance agent can make it easy to find the best and most affordable coverage.
What Is Mississippi Real Estate Firm Insurance?
Real estate firm insurance is a general term to refer to a business owners policy (BOP) or business insurance policy package that has been fully customized to meet the specific coverage needs of a real estate agency.
Independent insurance agents can help you be certain you are getting comprehensive coverage for your firm and that you are paying a competitive price for it.
What Could Go Wrong at a Real Estate Firm?
As with any business, real estate firms face potential hazards that can prove quite expensive. For instance, consider how your agency would handle the financial costs associated with the following if it were uninsured.
- A client comes into your office to sign paperwork and is severely injured after slipping on a wet floor.
- Hurricane force winds topple a tree and it falls onto the building where your agency is housed. Tens of thousands of dollars worth of company property is damaged beyond repair.
- Hackers use social engineering techniques to install malicious code in your company’s computer system. This enables them to steal your client's financial information and use it to commit identity theft and fraud.
- An unhappy client sues one of your agents for failing to disclose that a recently sold house had experienced significant flood damage the prior year.
These are just a few of the many potential problems your firm can experience. Having the right insurance in place ahead of time can help you rest assured that your firm can overcome the pitfall while remaining financially stable and profitable.
How Much Does Real Estate Firm Insurance Cost in Mississippi?
The cost for real estate firm insurance can vary from one business to the next. Factors that may influence your rates include the following.
- The size of your firm and its expected annual revenues
- The value of your business assets
- The number of people you employ and the jobs they do
- Whether your firm has any company-owned vehicles
- The types and amounts of coverage you want to purchase
- Your business’s claims history
The only way to find out how much a policy will cost for your specific real estate business is by requesting customized quotes from a few competing insurance providers. Independent agents can save you time and money by doing the comparison shopping on your behalf.
What Does Real Estate Firm Insurance Cover?
As with any business insurance policy package, your real estate firm insurance can cover as much or as little as you want it to. This is because your coverage is fully customizable with several policy options.
A local independent agent can advise you about which products are a good fit for your firm, and which you can do without. Examples of some of the policies your agent may recommend include the following.
- Commercial property insurance: This can cover your business-owned property if it is lost or damaged by a covered event like theft, fire, or severe weather events like a tornado or a severe storm.
- Commercial general liability insurance: This can cover your firm’s legal defense, settlements, judgments, and other damages if it is sued for a covered event such as if a client is injured while in your offices.
- Commercial vehicle insurance: This is necessary only if your real estate firm owns a company car or fleet of cars that your agents or appraisers can use. Your policy must meet or exceed Mississippi’s minimum coverage requirements.
- Non-owner car insurance: This can cover your firm’s potential liabilities if an agent, appraiser, or other worker causes a collision while driving their own personal vehicle for work-related purposes.
- Professional liability insurance: This can cover your agents, brokers, and appraisers if they are sued by a client for errors in judgment, negligence, or other professional mistakes that result in financial or other damage.
- Cyber liability insurance: This can cover your firm’s financial obligations to affected individuals if hackers break into your computer system and steal client information such as financial and personal data.
There are more commercial insurance policies available that may be a good fit for your real estate firm. Local independent agents can do a complete risk assessment of your business to identify any potential exposures and can then recommend the appropriate policies to mitigate each of them.
Do Real Estate Firms in Mississippi Need Workers’ Compensation Insurance?
Most real estate agents work fully on commission and are therefore considered independent contractors. It is not necessary to purchase workers’ compensation insurance for independent contractors in Mississippi.
However, if your agents are actual employees of your firm or if you have other workers such as receptionists, accountants, and other staff, you will be required to carry workers’ compensation if you employ at least five regular workers.
A local independent agent can help you determine whether a policy is necessary, and if so, can find you a suitable policy.
Let an Independent Agent in Mississippi Help You Find the Best Real Estate Insurance
When you are looking for the best and most affordable coverage for your Mississippi real estate firm, look no further than a local independent agent. These agents can recommend the right policies to ensure that your firm is fully covered and can find these policies at the most competitive prices.
There are more than 200 independent agents in Mississippi so it should be easy to find an insurance agent with an office near you. Set up an obligation-free consultation to get started.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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