Real estate and development companies have special needs when it comes to insurance. This is mainly because contractor businesses are high risk.
You have labor risks, equipment risks, professional risks – all of which may require more than one type of insurance. Let’s take a look at what real estate development insurance your company may need.
Errors and Omissions Insurance
Errors and omissions insurance, also known as E&O, helps to protect a real estate development business from the effects of bad consultations and the actions of agents underneath brokers. Even if agents have their own E&O, the broker should carry it as well. Otherwise, the broker may be held responsible for the actions of agents.
Business Property Insurance
If a real estate development business owns the building out of which it operates, then business property insurance is required to protect the building. Not only that, but property insurance also protects the important assets of the business that are inside the building. This includes protection against natural disasters, theft, and fire.
Business property insurance can be essential in protecting the intellectual property of a business as well. The important documents that contain valuable information about a business are usually stored in a physical location. Although many companies are using the cloud, there are some assets that can’t be stored that way.
If a company does not own the building, renter’s insurance is still an important protection mechanism for the business to have. Some of the same protections that come from property insurance can be created through renter’s insurance.
General Liability Insurance
If any guest, associate, vendor or customer of a development business visits a business office, then the company has a need for general liability insurance. If agents that are employed by a broker come by the building at all, this is also an essential type of insurance to have. General liability insurance protects a business against claims of property damage and injuries. It also has the ability to pay settlement costs and legal fees if a development business gets sued.
There may be other types of insurance that your business needs depending on the individual needs of the company. Make sure that you have a relationship with a trusted insurance broker to help you determine the types of insurance that you need. There is nothing worse than a hole in your insurance policy that you do not know about. Make sure that you have everything that you need before you open your doors in this high flying industry. Brashears Insurance is the broker that you need to compare and contrast policies, and we are ready to answer your questions about it.