Real Estate Insurance in Rhode Island
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 Providence, Warwick, Cranston, or anywhere in between, if you work in Rhode Island 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 Rhode Island may be different.
Types of Real Estate Insurance in Rhode Island
There are 3 main types of insurance for real estate:
- errors and omissions
- cyber liability
- general liability insurance
Errors and omissions insurance for real estate agents in Rhode Island is mandatory. Rhode Island is one of 13 mandatory states where typically each agent will obtain their own individual agent-based policy plus an excess policy purchased by the brokerage. At PBI Group we believe there is a better way, one where the agency buys one policy that covers both the agents and the company. This 1 policy has broader coverages and better protection than what is provided by have disparate agent policies topped off by an excess policy.
Errors and Omissions Insurance in Rhode Island
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 Rhode Island
Cyber Liability Insurance for real estate is a relatively new type of insurance policy in Rhode Island 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 Rhode Island
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 Rhode Island 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!
We have been with PBI Group for over 7 years and have been pleased with their competency, knowledge, and response. They have been helpful not only with E&O Coverage but with Cyber Insurance as well. They researched and found a carrier for cyber insurance when it was still an unknown coverage. Appreciate the level of service you provide us.
We are so pleased with the level of service we have received from the PBI Group for our real estate E&O insurance. They make shopping, applying for, and obtaining E&O insurance for my Rhode Island real estate agency an easy process. The constant communication and follow-up are second to none. We plan on being with PBI Group for our real estate E&O needs for years to come. (2022 Update: This is our fourth year with the PBI Group and the level of service keeps getting better and better! The ease of renewal, the response time of getting questions answered, and the value are second to none. I would not hesitate to recommend the PBI Group!)
Paul was extremely knowledgeable and helpful in setting up the unique E&O policy we needed for our business. We plan to continue doing business with PBI in the future.
Renewing our real estate E&O Insurance was made very easy by Paul at PBI Group. He sent the renewal form and then a gentle reminder when he didn’t have it back within a couple of weeks. He was available and answered my questions quickly. I will definitely go back to PBI Group when the time comes to renew our E&O insurance policy.
We have been working with Paul at PBI Group for my real estate E&O insurance for several years and have found him very knowledgeable, accessible, and has great pricing. We are so comfortable with him that we do not seek any other E&O quotes at renewal time.