From managing multiple clients amid market uncertainty to negotiations and contracts, running a real estate business can be stressful.
With so much on your mind, renewing your business insurance is often towards the end of your to-do list.
In fact, 41 per cent of small businesses admit that insurance is the last thing they consider when making business changes, according to the Vero 2023 SME Index.
It’s easy to understand why. Thinking about business insurance can be like that feeling when a deal falls through… difficult and likely painful.
But not thinking about it at all could lead to you to even worse situations, such as not being covered when something goes wrong.
Here are 3 situations where real estate business owners should think insurance.
- Business grown? Think insurance.
As your business develops, your revenue stream may increase, and new employees may be onboarded to help you keep up with the growing demand. While this is great for business, it could mean that your business insurance may not cover the new risks you now face. Ensure that when renewing your policy, it reflects the current size of your business. - Business circumstances changed? Think insurance. The real estate industry is highly regulated. A new law passed could have a profound impact on your business, such as recent ACT legislation that bans agents from encouraging rental bidding. As laws change and new ones take effect, you may have to adapt your service to compete in this new environment. Failing to follow the law could lead to claims of negligence or omission, which may be covered by your Professional Indemnity insurance*. When circumstances change, it’s a good idea to ensure your insurance has got you covered.
- Risks changed? Think insurance. When running a business, there are various risks that may affect clients or other third parties. Consider the scene in parts of Sydney, with queues around the block and hundreds of prospective renters viewing units. More people moving through a property may dramatically increase the risk of injury – which could increase the chance of a claim being made against your agency.
This is why it’s important to consider if your policy includes/has enough Public Liability insurance* to protect against third-party injury or property damage.
Additionally, it’s important to consider the risks to the business itself due to events such as fire, theft, or accidental damage, which may impact assets such as your stock, equipment, and commercial premises.
Business Insurance* is a package designed to provide cover for these assets and may need to be updated if any changes are made to the business premises or if there is an increase in external risks.
Business insurance is there to protect you from the current risks you face.
By not thinking about whether your risks have changed, these problems could become a lot worse if a claim were made against you.
Think insurance today
You’re not going to think insurance every day.
But hopefully, when these three situations arise, you’ll be urged to think insurance and review your cover.
With BizCover, buying business insurance has never been easier.
Just jump online and compare quotes from a range of leading Australian insurers and you could be covered in minutes.
Visit bizcover.com.au to compare quotes or give us a call today – no dramas!
*This information is general only and does not take into account your objectives, financial situation or needs. It should not be relied upon as advice. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. © 2023 BizCover Pty Limited, all rights reserved. ABN 68 127 707 975; AFSL 501769
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.