As the end of financial year (EOFY) approaches, real estate agents around the country find themselves knee-deep in reports, reconciliations and planning for the year ahead.
Although you might find yourself trying to get everything in order before the EOFY, it’s also a good time to consider reviewing your business insurance.
Real estate is a fast-paced and often high-pressure industry.
In some instances, one little missed detail can turn into a costly claim.
Whether you’re managing listings, showing open homes or negotiating complex deals, your work as a real estate agent comes with a unique set of risks.
From professional errors to cyber threats and property damage, even experienced agents can find themselves exposed to unexpected claims.
Business insurance policies to review before June 30th
Regularly reviewing your insurance policies can help to ensure that you have adequate cover to protect your business should something go wrong.
Having business insurance can help to protect not just your finances but also your reputation as a real estate agent.
However, it’s important to review your cover to make sure it hasn’t lapsed and assess if there are risks that your current insurance doesn’t cover.
After all, you don’t want to find yourself with an expensive claim and out of pocket.
Professional Indemnity insurance
Professional Indemnity insurance offers protection for businesses that provide specialist services or professional advice, including real estate agencies.
It is designed to respond to claims against your business for losses as a result of actual or alleged negligent acts or omissions in the provision of your professional service or advice.
As an example, real estate agents in NSW are legally obligated to hold Professional Indemnity insurance of not less than $1 million for any one claim, and not less than $3 million in the aggregate.
Reviewing local laws and regulations helps to ensure you meet the requirements of working as a real estate agent.
Whether you’re legally obligated to hold Professional Indemnity insurance or not, it’s still a good idea to review your insurance to make sure that you are still adhering to local regulations and that your insurance has not lapsed.
Public Liability insurance
Public Liability insurance is sometimes also known as ‘slips, trips and falls’ insurance.
Public Liability insurance covers legal fees and compensation costs if a customer, member of the public, or a supplier claims against you for injury or damage to their property as a result of your alleged negligent business activity.
This could be something as simple as a prospective client falling and injuring themselves at an open home inspection.
Public Liability claims can be expensive. That’s why it’s a good idea to review your Public Liability insurance to make sure you have adequate cover in case a claim is brought against you.
Cyber Liability insurance
You may think your agency is too small to catch the attention of cybercriminals.
But there you’d be wrong. Real estate agents are prime cyberattack targets because the data they hold is a very valuable commodity – think client names, addresses, contact details and financial information.
This is the kind of information cybercriminals are after because it can be exploited for various purposes, such as identity theft, financial fraud or phishing scams.
This is why many agencies choose to take out Cyber Liability insurance.
Cyber Liability insurance covers losses from claims arising from data breaches, business interruption and remediation costs following an actual or threatened data breach.
Business Insurance pack
Business Insurance is a customised insurance package designed to provide cover for your business contents, equipment and commercial premises when an insured event occurs (such as fire, storm, theft or even accidental damage).
It can be tailored to meet your agency’s needs, so you can pick and choose the policies that are most relevant to your business – like Tax Audit, Management Liability, Glass or Business Interruption insurance.
If it’s been a while since you reviewed your business insurance policies, then now is the time to do it. This can help you to identify any gaps in your coverage before the EOFY, and ensure that you still have adequate cover in case the unexpected happens.
Preventing underinsurance
When you don’t have adequate insurance to help protect your business and assets, then this means that you’re underinsured.
For example, if you insure your business contents (furniture, fittings, plants, etc) for $20,000, but they are actually worth $30,000, then you are underinsured.
The consequences of underinsurance can be serious, impacting not just an agent’s financial stability but also their reputation.
The simplest way to avoid the risk of underinsurance is to review your policies regularly.
For example, if the value of your assets and contents has increased, you’ve purchased new equipment, hired more staff, or maybe moved to a new location, then you should think about reevaluating your policies before the end of the financial year.
Review your insurance before EOFY
BizCover understands the challenges that come with being a real estate agent.
While the job can be highly rewarding and fulfilling, there’s no doubt that it can at times be stressful and demanding.
This is why BizCover has made it easy for real estate agents to quickly and easily compare insurance quotes online from selected leading Australian insurers. Get quotes and purchase new insurance in minutes, or review your existing policies.
The streamlined BizCover platform can save you time and stress, allowing you to get back to running your business and helping your clients find their dream home.
For on the go cover, go BizCover or call 1300 805 821.
