Insurance for Calgary Real Estate Agents
Calgary real estate agents have specialized market knowledge about the sale and purchase of homes. Your job does come with specific risks, though, and you’ll need business liability insurance to protect yourself.
Did you know? All real estate industry licensees in Alberta are required to have professional liability insurance, which is also called errors and omissions insurance.
Where is your Calgary real estate business located? Do you serve corporate, commercial, or residential clients?
A Western Financial Group business insurance broker will get you commercial coverage that uniquely protects what you do.
Western is a trusted, national insurance brokerage that has partnered with Canada’s top insurance companies to provide commercial insurance. We work with our insurance partners to find the best business coverage for your needs as a Calgary real estate agent.
We make the process easy by getting insurance quotes for you and giving you policy coverage options that you can choose to protect yourself.
Real estate industry regulation in Alberta
The Real Estate Council of Alberta is an independent governing authority that sets, regulates, and enforces standards for residential real estate, commercial real estate, property management, condominium management, and mortgage brokerage licensees across the province.
How much does Calgary real estate insurance cost?
The cost of your real estate insurance will vary depending on factors such as:
- Type of coverage you need and want
- Annual revenue
- Your claims history
- Number of employees
- Business location and type of building
How will real estate office insurance protect me?
A real estate office insurance package can help protect you from these common claims:
A client comes to your Calgary office and slips and falls on a wet floor, injuring her back. She decides to sue you to pay medical bills not covered under provincial health insurance and to compensate the income lost during her recovery period.
Commercial general liability (CGL) insurance would cover your legal defence and any settlement costs up to the limits of your coverage.
You are on your way to show a client’s house in your personal vehicle and another driver hits your car.
Commercial auto insurance would help cover the costs of repairing your vehicle.
Liability insurance is an essential part of your Calgary real estate insurance package to protect you or your real estate company from lawsuits.
Professional liability insurance
This insurance coverage is mandatory for Alberta real estate professionals.
Professional liability insurance helps protect Calgary real estate agents from claims of negligence when they are performing their duties. It’s also called errors and omissions insurance. Remember that legal fees can be quite expensive and damage awards can be extremely high without professional liability insurance.
What does E & O insurance cover? Negligent acts, errors, or omissions related to you work as a Calgary real estate agent. It also covers failure to deliver a service as promised.
Cyber liability insurance
Cyber liability insurance will help protect you as a Calgary real estate agent should you or your real estate brokerage be affected by a cyber-attack. Did you know that depending on the size of the data breach and what information was taken, affected customers can hold you liable and sue you for damages?
Crime insurance
If you own a Calgary real estate brokerage, there could be times when you need to entrust real estate agents and employees in your office with taking cash deposits to the bank. With crime coverage as part of your real estate office insurance, you can recoup that loss through insurance compensation up to the limits of your policy.
Commercial general liability (CGL) insurance
This is necessary liability insurance for Calgary real estate agents. Without commercial general liability insurance, you will be responsible for paying all the costs related to third-party (customer/supplier/member of public) injuries or damage to their property.
If you were sued, CGL insurance would cover the legal costs to defend the claim against you in court, as well as costs to cover damages to compensate third parties whether you win or lose your case.
What does commercial general liability insurance cover?
- Injury to a third party who is not your employee
- Damage to someone’s property
- Damage to rented property
- Medical bills if someone is injured
- Legal costs and settlement costs of liability lawsuits filed against you
- Liability lawsuits related to slander and libel
What other insurance coverages do Calgary real estate agents need?
Commercial property insurance
Commercial property insurance provides financial support to replace or cover repairs to your Calgary real estate office if it is damaged by a flood, fire, or severe weather. It covers vandalism and theft, too. It also covers your real estate company’s contents such as computers, furniture, tools, equipment, and inventory. Commercial property coverage also extends to protect others’ property that is under your care.
Business interruption insurance
This type of insurance supports your Calgary real estate brokerage when it can’t operate due to a covered loss.
Examples of losses that can force your business to shut down:
- Damage to your equipment from fire or vandalism
- A major reduction in revenue due to a client/supplier facing losses of their own
- A disruption in your supply chain
Business interruption insurance can help with these expenses:
- Payroll
- Rent
- Utilities
- Property taxes
- Alarm monitoring
- Relocation of your business
Commercial auto insurance
If you are using your car for your job in Calgary’s real estate sector, it won’t be covered by your personal car insurance policy. You will need commercial coverage as part of your insurance package.
What do I do if I have a claim against me?
- Contact your broker immediately after any business-related mishap. Waiting to file a claim can confuse insurers about the severity of the damages to your business.
- Know your policy so that when you contact your broker you are familiar with what will be covered or not.
- Document the damage. Take photos right away and write down what happened.
- Do not throw away damaged goods after taking photos. Keep the physical evidence so that your adjustor can see it.
- Do not invite lawsuits. Don’t say anything that could be used against you, especially if you aren’t sure what happened.
- Be honest about what your damaged property is worth. Damaged commercial property is generally valued according to its actual cash value or replacement value.
Here’s a business insurance checklist:
- Do you have the best business insurance rate that suits your sector?
- Do you have the right amount for your deductible and regularly review it to make sure it’s the right amount for you?
- Are you or your employees using personal vehicles for work?
Western Financial Group has licensed BUSINESS INSURANCE EXPERTS to get you commercial insurance suited to your needs as a Calgary real estate professional.