Real Estate Insurance in Alabama
The real estate industry can be exciting, fast-paced, and on-the-go especially in times when the real estate market is on the rise. This makes it a fun and profitable profession, but at the same time increases the likelihood for insurance claims against real estate professionals. Whether you work in Birmingham, Montgomery, Huntsville, or anywhere in between, if you work in Alabama odds are 98+% of real estate professionals invest in various insurance policies to manage their exposure. Below we explain the 3 main types of real estate insurance and how working in Alabama may be different.
Types of Real Estate Insurance in Alabama
There are 3 main types of insurance for real estate:
- errors and omissions
- cyber liability
- general liability insurance
Although errors and omissions insurance is not mandated by Alabama, E&O insurance is often required by another authority such as your real estate franchise or bank partners. Regardless of whether it is actually mandatory, common sense or past experiences often make signing up for errors and omissions insurance in Alabama an obvious choice.
Errors and Omissions Insurance in Alabama
Just as the name would suggest, errors and omissions insurance covers errors and omissions made by real estate professionals working on behalf of a real estate brokerage. Specifically, E&O typically covers situations like not disclosing relevant information about the property, or not showing a property to a prospective buyer to even bodily injury or damage that could happen during a showing. In general terms, broadform E&O policies protect both the brokerages and individual real estate agents if they’re sued by a client because of a mistake they’ve made related to transactions in real estate.
Errors and omissions insurance for real estate often covers defense costs, legal costs, and court costs related to a claim.
Cyber Liability Insurance for Real Estate in Alabama
“Cyber Liability Insurance for real estate is a relatively new type of insurance policy in Alabama that is designed to protect businesses from both 1st and 3rd party risks associated with cyber attacks and fraud. Real Estate professionals are a prime target for these types of attacks, because real estate deals involve complicated, multi-party, high value transactions and sensitive personal data.
First party Cyber Liability policies cover the real estate agent directly and include things like Cyber Extortion, Electronic Transfer Fraud, Deceptive Funds Transfer, and Telephone Tolls, to name a few. Direct coverage is important, but from what we have seen are rarely the reason why real estate professionals decide to purchase cyber liability policies. It’s the 3rd party protection that is usually the consideration, because that coverage would protect the vendor/partner or clients and in real estate deals, this is where the majority of the money is.
General Liability Insurance for Real Estate in Alabama
General Liability Insurance or business liability insurance is a common type of coverage in any industry that protects businesses from claims resulting from normal business operations not specifically related to the real estate industry.
Specifically, General Liability Insurance in Alabama will cover personal and advertising injury, damage to properties that are rented to your business, as well as, bodily injury or medical claims, and other common business liability exposure.
Finding the Right Partner
Navigating the regulations and designing a comprehensive policy for real estate professionals requires finding a partner with the right knowledge and experience. At PBI Group, we have written over 50,000 real estate E&O policies for thousands of real estate companies throughout the 50 states. For Cyber Liability insurance, a comprehensive plan specifically for real estate professionals doesn’t yet exist and the risks are changing and evolving constantly. PBI Group is committed to researching and working with carriers to create the best plan.
PBI Group is founded on the principles of trust, partnership, fanatical service and, most of all, industry leading E&O coverages. We do what we do because we believe there is a better way to buy professional liability insurance than online portals with cheap premiums and minimalist coverage. When your policy comes up for review, don’t just accept your renewal quote without finding out the benefits that come along with best.
RECOGNIZE ANY OF THESE RESPECTED REAL ESTATE PROFESSIONALS?We Love our Clients!
I don’t know how I found Paul Bondy, but I have been happy with his service & his most accommodating attitude since I was first in contact with him. I originally dealt with Paul at his prior company. A couple of years ago, I called to get a new E&O quote and found out that he was no longer there. I was unable to get anyone to tell me where Paul went. I liked him so much that I was in hot pursuit of him. After a lot of effort & searching on the internet, I found several Paul Bondy’s in the White Pages & called each one until I reached him at PBI Group. I have just placed my E&O coverage with Paul again and was very glad I found him. Paul is a good man with lots of patience, and he is very thorough. I am a satisfied client.
After many years with a previous real estate E&O insurance provider, I requested a quote from PBI Group when Chris contacted me a few years ago. Better coverage, better premium, better service and I have been a PBI customer ever since. Thanks Chris!
PBI Group’s representatives have been great to work with in obtaining our real estate E&O insurance coverage. They were very professional, friendly, and helpful in responding promptly to our questions.
PBI Group offered our real estate brokerage excellent E&O coverage tailored to our needs as a small company in Alabama. We are thrilled with the service and feel confident in our real estate E&O insurance coverage.
Paul Bondy was my agent when he was with another company and was always on top of my policy matters. When he formed his own agency, PBI Group, it was natural for me to select him to represent my Alabama real estate company. All I can say is WOW. Paul searched the market and found me a policy that saved me thousands annually, and afforded me better coverage and a lower deductible. I have since recommended PBI Group to dozens of my fellow realtors for their real estate E&O insurance. I should add that Paul has continued to be on top of my policy matters/needs, and not just at renewal time.
I would highly recommend PBI Group and Chris Dittes for your real estate E&O insurance. They have been very patient when we are so late getting our application into them.