Real Estate Insurance in Michigan
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 Detroit, Grand Rapids city, Warren city, or anywhere in between, if you work in Michigan 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 Michigan may be different.
Types of Real Estate Insurance in Michigan
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 Michigan, 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 Michigan an obvious choice.
Errors and Omissions Insurance in Michigan
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 Michigan
Cyber Liability Insurance for real estate is a relatively new type of insurance policy in Michigan 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 Michigan
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 Michigan 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!
Thank you for all your help in determining what was the best real estate E&O insurance for me. The comparisons and quotes from three different companies were extremely helpful in my decision. I was impressed with your knowledge of the policies and also appreciated your patience in answering my questions. The time you took with me was greatly appreciated. The best part of our dealings is that when I made my decision, I felt that I had a good grasp of what coverage I needed, and understood my policy.
Christopher Dittes at PBI Group has been my provider for nearly 7 years now. I can’t say enough about how pleased I am with his service and super fast responses to any requests I have. He is on the ball and does everything he can to help. He makes the process super easy and is very thorough in explaining the policy. I would 100% recommend him to any person needing an E&O insurance policy for their real estate brokerage. Also, most importantly he was just about $300.00 less per year with the same coverage, compared to two other providers. While I’m not happy that I have to pay for insurance lol, I am happy with the price and service of the PBI Group.
Paul has guided our small business through its growth and the challenges it created. As small business owners, the ability to rely on a real estate E&O expert for something as important as our insurance needs is critical and allows us to sleep at night.
I have worked with Paul Bondy for three years and he is wonderful to deal with. He responds quickly to inquiries and explains the policy thoroughly. It is an added bonus that his pricing was much less than the other quotes I received. I am happy to have him as my agent.