The real estate industry is made up of professionals providing a variety of services, all of which require insurance. Real estate values have changed dramatically and some markets are very competitive, which could lead to increased client expectations and claims. Primary exposures for real estate services are Errors and Omissions (E&O) and Cyber Insurance.
Our streamlined process provides you with multiple proposals from the top competitive insurers, along with expertise to help you evaluate your exposures and choose the best combination of comprehensive coverage and price. Click below to start an application.
Why Do You Need Insurance?
Real estate businesses need insurance to help cover the costs associated with liability claims, property damage, and other exposures (think: cyber). Protection for liability claims is particularly important for real estate services because clients are relying on their expertise. In addition, many real estate services have proprietary data and confidential client information related to their services. Real estate clients often have high expectations for their experts which can lead to claims when not met. Insurance protection is an important component of successfully operating any organization.
Comprehensive coverage can help with:
What Coverages Are Recommended?
Real estate is segmented into a number of specialized services, each with its own coverage requirements such as specific E&O Insurance forms.
In addition to Specialty Insurance, all organizations should include most or all Standard Insurance coverages to be protected. And some real estate services also Bonds.
What Types Of Organizations Need Coverage?
Real estate service segments include:
Some real estate service organizations may have unique or challenging exposures such as:
Are There Special Situations I Should Be Aware Of?
All new organizations will require insurance at some point, but the tricky question is what coverages are needed when. Founders need to balance conserving cash with basic protections, and no founder wants to incur expenses needlessly.
As committed capital rises, and an organization is providing services, insurance becomes more important for the organization’s and its’ employees’ protection. Many customers, vendors, investors, and lenders will require insurance such as D&O, E&O, and Cyber Insurance. And in some industries, regulators also require certain types of insurance, such as Bonds.
Our experts can help you develop a plan for obtaining coverage on a schedule that fits your plan.
Many real estate service providers are also owners of property they service, and some E&O forms preclude coverage that is partially or wholly owned by an insured. If this is the case, modified coverage may advisable in order to get required coverage.
Your business may take a different approach from other businesses in your industry and therefore need custom insurance coverage. Our experts and underwriters can assist you with insurance coverage for your unique services.
It is possible that certain products or services that are new or not a significant part of your business may be important in underwriting your insurance. Make sure that these are clearly and fully disclosed in your application information to ensure that they become part of your coverage.
Buying or Selling a Business
There is a range of factors to consider when buying or selling a real estate business, or a property. A purchase or sale agreement will contain provisions regarding what happens to any outstanding liabilities, and the insurance should follow. The seller is often responsible for ensuring that any outstanding liabilities are covered, and for E&O this means tail coverage. Other coverages may also require a tail, such as D&O. And insurance is available to provide financial protection for the representations and warranties contained in a purchase/sale agreement, called Reps & Warranty (R&W).
Get in touch if you have insurance questions or needs related to the purchase or sale of businesses.
Why Choose eSpecialty?
Our experience in specialty insurance markets ensures competitive coverage solutions for you
Effective placement of specialty insurance experience and access to specialized underwriters
We will find solutions for all your unusual, complex or challenging insurance exposures
Note: Insurance policies are not all the same. Some policies are more comprehensive than others, and some policies provide broader coverage in specific areas. In addition, each insured may have different exposures and coverage needs. We encourage you to read your policy and consult with a Specialty Insurance expert such as eSpecialty Insurance.