{"id":3178,"date":"2022-11-29T15:22:14","date_gmt":"2022-11-29T15:22:14","guid":{"rendered":"https:\/\/www.insurancebee.com\/blog\/?p=3178"},"modified":"2024-10-24T13:27:51","modified_gmt":"2024-10-24T13:27:51","slug":"why-all-real-estate-companies-need-general-liability-insurance","status":"publish","type":"post","link":"https:\/\/www.insurancebee.com\/blog\/why-all-real-estate-companies-need-general-liability-insurance","title":{"rendered":"Why all real estate companies need general liability insurance"},"content":{"rendered":"
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The real estate industry is growing at a healthy rate. It\u2019s worth hundreds of billions of dollars. And it\u2019s continuing to grow at over 3.5% a year, even with all the uncertainty in the economy.<\/p>\n\n\n\n

Growth means more clients coming through your doors. More buyers, sellers, tenants, and landlords.<\/p>\n\n\n\n

Sounds great, right? It is, but it also means higher risk.<\/p>\n\n\n\n

Every time you\u2019re showing a buyer around a property, there\u2019s a risk. The same is true when a client visits your office. Or a landlord invites you for an inspection.<\/p>\n\n\n\n

Accidents happen. The kind of accidents that general liability insurance<\/a> is designed to help with.<\/p>\n\n\n\n

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Why do real estate agents need general liability insurance?<\/strong><\/h2>\n\n\n\n

Maya Angelou said<\/a> that we should all be \u201choping for the best, prepared for the worst, and unsurprised by anything in between\u201d.<\/p>\n\n\n\n

Any business would benefit from this approach. Especially when it comes to insurance.<\/p>\n\n\n\n

Claims can come from anywhere. At any time. From any one of your clients.<\/p>\n\n\n\n

General liability covers you for a bunch of these claims. Any of them could cause your business serious problems.<\/p>\n\n\n\n

Without insurance, a claim could cost you anywhere from a few hundred dollars to well over $100,000.<\/p>\n\n\n\n

Legal fees, compensation, lost business. The costs quickly add up.<\/p>\n\n\n\n

So what exactly does general liability insurance cover you for?<\/p>\n\n\n\n

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Coverage for injury<\/strong><\/h2>\n\n\n\n

To start, general liability insurance<\/a> covers you for claims of personal injury. These could be from clients, vendors, or other people associated with your business.<\/p>\n\n\n\n

(Just a heads up that it won\u2019t cover you for injury to your employees. That\u2019s what workers\u2019 compensation<\/a> is for.)<\/p>\n\n\n\n

Personal injury claims are common. Over 400,000<\/strong> are filed every year in the U.S<\/a>.<\/p>\n\n\n\n

For real estate companies, the threat of a personal injury claim is very real. A client could injure themselves while viewing a property with you. Or they could be hurt while visiting your offices.<\/p>\n\n\n\n

It could be a fall down some stairs. Or someone spilling hot coffee on them during a meeting.<\/p>\n\n\n\n

What matters is that you\u2019re covered for any costs that come out of a claim. That includes compensation, legal fees, medical expenses, and loss of earnings.<\/p>\n\n\n\n

And these costs can ramp up quickly. The average personal injury settlement between 2016 and 2021 was $62,600<\/strong><\/a>.<\/p>\n\n\n\n

That\u2019s a lot of money. And enough to knock loads of real estate companies out of business.<\/p>\n\n\n\n

<\/p>\n\n\n\n

Coverage for property damage<\/strong><\/h2>\n\n\n\n

General liability insurance also covers you for property damage claims.<\/p>\n\n\n\n

You probably have dozens or even hundreds of viewings a week. Any one of these could lead to a property damage claim.<\/p>\n\n\n\n

Let\u2019s say you\u2019re showing a buyer around a property. You\u2019re caught up in explaining about the swanky new kitchen and trip on a step, knocking a valuable picture off the wall.<\/p>\n\n\n\n

Or maybe instead of damaging a picture, you put your hand through some drywall as you fall.<\/p>\n\n\n\n

Your insurance covers you for any costs of this damage.<\/p>\n\n\n\n

It\u2019ll also help you maintain a good relationship with the property owner. So you can hopefully keep them as a client.<\/p>\n\n\n\n

The last thing you want is to struggle to compensate them for the damage.<\/p>\n\n\n\n

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A few other bits and pieces<\/strong><\/h2>\n\n\n\n

A general liability policy also covers you for claims of copyright infringement and defamation.<\/p>\n\n\n\n

You probably do a lot of marketing. Selling properties, attracting buyers, and making sure everyone knows about your business.<\/p>\n\n\n\n

Sometimes during a campaign, you might get accused of stealing another company\u2019s idea. Or even infringing on a copyright.<\/p>\n\n\n\n

It\u2019s a serious accusation. And one that can lead to a court battle, legal fees, and compensation.<\/p>\n\n\n\n

A copyright infringement settlement can cost up to $30,000. It can even go past $100,000 if the other side can prove you were aware of the infringement and still went ahead with your campaign.<\/p>\n\n\n\n

Thankfully, your general liability insurance will cover you for any of these costs.<\/p>\n\n\n\n

It\u2019ll also cover you for any claims of defamation \u2013 if someone accuses you of bad-mouthing them. These can be tricky to deal with and settle for an average of $15,000<\/a>.<\/p>\n\n\n\n

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What isn\u2019t covered by real estate general liability insurance?<\/strong><\/h2>\n\n\n\n

We\u2019ve highlighted a few things that general liability insurance doesn\u2019t<\/strong> cover. But here\u2019s a list that summarises them:<\/p>\n\n\n\n