Why do Real Estate Agents need it?
As a real estate agent, you play a crucial role in facilitating the transaction between home buyers and sellers. Be it residential or commercial, you are legally held responsible for your day to day activities and may face serious financial losses due to legal defense costs and damages if a dissatisfied client files a lawsuit against you or your business.
Did you Know?
Real estate agents providing incorrect or misleading information topped the consumer complaints and inquiries to the Real Estate Agents Authority (REAA).
Insurance for Real Estate Agents
Professional Indemnity insurance is designed to protect your business against legal claims and costs by third parties for damage arising from acts, error, omissions, and breaches in your professional duty. This may include the sale of real estate, poor property management, allegations of misleading or misrepresentation or a breach of statutory rules.
This insurance is an essential component of any business’ insurances. It covers your liability to third parties for any property damage and or injury or death arising out of your work where ACC does not respond. Typical claims for Real Estate Agents might include leaving a property unlocked and a theft occurs or by causing damages to a property or its contents during an open home. It is relatively cheap cover for the amount of protection afforded.
Business Insurance provides cover for your business assets from perils such as theft, fire and natural disaster. It also provides indemnity for any loss of revenue incurred by your Real Estate business as a result of any insured peril.
Working as a real estate agent, you will have sensitive and important documentation that you will need to protect from data breaches and other malicious cyber threats. In such an event, cyber insurance can help cover your business in the event of:
• Forensic investigation costs
• Data restoration costs
• Security failure claims
• Public relation costs
• Cyber-extortion costs
• Fines, penalties, and loss due to defamation
• Privacy and intellectual property claims
• Identity theft
• Ransom and extortion
With the ever-changing statutory landscape for the Real Estate industry, it is becoming more and more crucial for Real Estate Agents to have protection for any inadvertent breaches of New Zealand statutes. This will cover legal defence costs as well as, in some cases, cover for fines incurred.