The real estate industry is a fast-paced field. Your reputation is a crucial factor in gaining a client, whether you work as an individual estate agent or for a larger company that provides residential and commercial services, therefore it’s critical to have the appropriate estate agent insurance.
It’s critical that the nature of your work doesn’t put your reputation with clients in jeopardy. Errors might occur when working with a variety of property owners and structures. This could be something minor like losing important paperwork or something more substantial like improperly conducting a sale.
If you’re wondering what insurance you need as an estate agent, look no further. We have compiled a list of all the insurance you need to consider.
Professional Indemnity Insurance
Professional indemnity insurance is a must if you are an estate agent – you can’t be a member of the National Association of Estate Agents without it. The NAEA is the UK’s professional body for estate agents, and you must provide a copy of your insurance with your application form.
Working as an estate agent means that any advice given out is always open to scrutiny. If a client determines that you have made a mistake or given them bad advice, they are well within their rights to sue you.
You must have a minimum of £100,000 of cover, with this increasing to £150,000 if you are a residential letting agency, and to £500,000 if your annual fee income is over £150,000. However, you must determine what the right amount of cover is for your work; this may be more than the required minimum.
Public Liability Insurance
Working as an estate agent means that you are constantly interacting with members of the public, be it through viewings or appointments. However, if any accidental injury or damage occurs during a viewing or meeting then they may make a claim against you.
For example, if you accidentally damage furniture whilst showing a prospective tenant around a property, the landlord could sue you for the damages.
Public liability insurance is also a must if you have clients come visit you in an office, as they could encounter an injury during the visit, for example, tripping over a loose computer wire.
Employers’ Liability Insurance
If you are the owner of an estate agency, it is required that you have employers’ liability insurance. This covers your business in case an employee makes a claim against you for damages.
This usually occurs if an employee suffers an injury or illness as a consequence of working for you.
The minimum amount of cover you must have is £5 million.
Office & Property Insurance
This insurance covers the equipment in your office, from desk plants to IT equipment. If you have a physical premises it is imperative that you have office and property insurance so that if your office experiences damage or even a break-in, you won’t be left to fork out for new equipment.
You can also get portable insurance so that your gadgets such as laptops and tablets are covered whilst you are on a site visit.
If you work remotely, you can also get office insurance which covers your home address.
Business Interruption Insurance
Business interruption insurance is a special type of insurance which ensures you are covered if you are unable to use your office. For example, if your office gets flooded you will be able to claim for the costs of setting up a new workplace whilst your office is out of action, and for any loss of revenue during that time.
Directors’ & Officers’ Insurance
Directors’ and officers’ insurance, commonly known as D&O insurance, covers your company’s directors should a personal claim get launched against them. Anyone is able to accuse a director of not running a business in its best interests, and to top it off directors are personally liable for their actions.
This insurance will cover your defence costs as well as any compensation you may have to pay.
Cyber & Data Insurance
Estate agents handle and store sensitive data such as client and landlord information. This information could be stolen through a cyber attack, or even if the information is mislaid.
In a situation where personal details are under threat, the affected parties may decide to claim against your estate agency. This insurance will cover your defence costs relating to data breaches, minimising the impact on your business.
Looking for Estate Agent’s cover?
Here at Heath Crawford, we have years of experience providing specialist insurance to Estate Agents.
Contact us today on 0208 421 7030 to let us help you protect your career and business.