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Real Estate Agents Insurance, also known as Professional Liability Insurance, is a special variation of Employer Liability Insurance (sometimes called Malpractice Insurance.) It covers professional liability in the real estate market for errors and omissions which may result in injury, damage, loss, or death to an individual. A policyholder who has a contract with an agent may be held liable for damages even if the agent has no awareness that an error or omission is likely to result in injury, damage, or loss. Because it covers errors and omissions, this form of insurance is sometimes called, “The silent killer.”

One of the main reasons that business owners should have Business Liability Insurance, and not just Professional Liability Insurance, is because liability policies can cover errors and omissions which cause injury, damage, and loss, even though the business owners may not be the direct cause of the death or injury. Therefore, business owners, professional liability policies to protect business owners from claims stemming from errors and omissions which occur during the performance of duties. These policies are generally called Business Income and Business Liability, and the premiums associated with these policies are based on the amount of coverage that is requested by the business owner. If a business owner has errors and omissions related to their business, they may be exposed to claims which could potentially bankrupt their business. Therefore, the coverage provided by these policies protects business owners from claims of injury and damage which could prevent them from operating their businesses or maintaining their financial stability.

As a profession, the Insurance Industry (i.e., Real Estate Agents) has developed specific statutes and rules which regulate the acts of Real Estate Agents and the actions which could be construed against an agent under many states’ rules and regulations. For instance, in many states, it is illegal to drive an automobile without the appropriate Commercial Auto or Employer Liability insurance. An agent can have liability coverage on an auto that they are driving if the vehicle has sufficient safety features that would make it safe to operate by a qualified person under the rules of many states including New York, New Jersey, Connecticut and Pennsylvania. As an agent, it is also your responsibility to know what commercial liability coverage is required in your state and under what circumstances you are authorized to use a policy of this type.

One of the most common types of policies that are written for Real Estate Agents is Commercial General Liability Insurance. This form of insurance protects the agents and their clients against claims of injury due to negligent actions on the part of the seller, contractor or subcontractor. This form of policy may also cover actions based on property damages, wrongful death and also medical malpractice actions. However, it is not uncommon to also find a Commercial General Liability Policy that also includes provisions for damage to other people or property due to the negligence of the agent. In this case, the policies would probably cover any damages that arose as a result of the agent’s negligence, whether the action was intentional or not. Although many agents believe that having this additional protection is a good thing, some professional liability insurance policies have very high limits of liability and it may not be worth the risk of taking out a policy with such provisions.

In some instances, the forms of liability coverage that agents may receive will not provide any coverage to compensate for their actions in the course of their business operations. For instance, agents could be sued after an accident in which they caused harm to another party or when they injured a third person during the course of their business operations. In such cases, professional liability coverage forms may provide coverage for all damages incurred by the agents, their dependents and even themselves.

Most Real Estate Agents realizes the need to protect themselves and their assets. But, there are still those who do not understand the importance of having general liability insurance. Property managers are also required to carry personal liability insurance and they have the right to request an agent to accompany them on property tours in order to help protect them as well. Real Estate Agents must be aware of the limitations that come with having this type of policy. The limits could be in different forms and they vary depending on the specific policy that has been purchased.

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