Real estate and development companies need special coverage when it comes to insurance because contractor businesses are at high risk.
There are several risks in the real estate development industry, labor risks, equipment risks, professional risks, and more. That’s why you may require more than one type of insurance.
These are the insurance policies you should consider for your real estate development company.
Errors and Omissions Insurance
Errors and omissions insurance, also known as E&O, is an insurance policy designed to protect a real estate development business from the effects of bad consultations and actions of agents underneath brokers.
Business Property Insurance
If you are into the real estate development business and own the building out of which it operates, then you need to invest in business property insurance because it is required to protect the building.
Aside from that, property insurance also protects the assets of the business that are inside the building which includes protection against natural disasters, theft, and fire.
Business property insurance is very important in protecting the intellectual property of a business. The important documents that contain valuable information about a business are stored in a physical location. Although a lot of companies are using the cloud, some assets can’t be stored in that method.
If your company does not own the building, renter’s insurance is recommended to protect the company’s mechanism.
The protections that come from property insurance can be created with renter’s insurance.
General Liability Insurance
If one of your company guests, associates, vendors, or customers visits a business office, then the company needs general liability insurance. If agents that are employed by a broker come by the building, this is an essential insurance policy to have. General liability insurance is designed to protect a business against claims of property damage and injuries. It is also capable of paying settlement costs and legal fees if a development business gets sued.
There are several types of insurance that your business needs depending on your company’s asset needs. Make sure that you have a good relationship with a trusted insurance broker so that you will be able to determine the types of insurance that you need.