December 21, 2018
It’s common knowledge that every state in the country requires companies to have workers’ compensation coverage by law. This is very evident in the real estate field, as brokers and agents are open to a number of risks given their work environment and the element of working autonomously. Attempting to work in real estate without this kind of insurance to save a little bit of money can end up costing you major dollars in the event of an accident.
Now, there are government agencies in place that are specifically designed to crack down on business owners and independent brokers within real estate who don’t comply with the law, like in California where the Department of Industrial Relations oversees this kind of effort. That being said, it’s important for real estate professionals to understand the need for the right kind of real estate insurance needed to operate.
Protecting Real Estate Employees
Accidents and injuries may not seem like big issues in the real estate industry. However, there are a number of things that could pop up within the office, such as tripping and falling, carpal tunnel syndrome, or other miscellaneous mishaps. This is why real estate agencies and their professionals should look into effective real estate insurance as well as workers’ compensation to provide a full-circle level of protection.
When accidents do happen, even if they are rare, workers’ compensation will step in to cover the medical attention needed and possibly the foregone income from the time it takes for them to recover.
Knowing State Laws
If a real estate or title agency has W2 employees, there’s a good chance the state requires that they carry workers’ compensation coverage. However, each state has its own fine detail when it comes to coverage rules. Some states operate a workers’ compensation fund while others allow a business to cover itself with private plans. Also, some state laws only kick in when a certain number of employees work out of an agency, while others make it mandatory for all employees, even contractors, to be covered. Before getting this kind of real estate insurance policy, make sure it adheres to the laws in your state.
Try to Reduce Premiums
Premiums can be reduced by excluding owners and officers from a workers’ compensation policy. This may decrease the rate of the premium in question. However, it pays to not that as the owner of a real estate or title company, owners may benefit from being included in the policy. Be sure to go over all your options and make sure to weigh the money that could be saved against the usefulness of having coverage if you should be injured while work is carried out.
Incidents on the Job
As mentioned above, working inside a real estate office may not be too costly to your overall health. But out on the job, in the field, for instance, may pose a number of other risks. The moment you take your car off the parking lot to go meet a client or take an interested and possible client with you to a new listing, risks begin to open up.
From traffic violations and wrecks on the road to slips and falls at the destination you’re heading to with the client, liabilities grow in the real estate field. And when it comes to just real estate professionals going out by themselves, say to look at a property or drop something by, workers’ compensation comes in handy. Think of electrical problems or doors or cupboards not being set in place and somehow harming the employee. The risks seem to mount, so make sure to have a solid plan in place to protect employees.
About Associations Liability Insurance Agency (ALIA)
The ALIA Team (part of the Riverton Insurance Agency Corporation), specializes in helping real estate professionals find the affordable and comprehensive coverage they need, without the hassle. ALIA dates its roots to 1991 with the founding of FREA, Foundation of Real Estate Associates. In 2013, ALIA was created to work with multiple insurance companies thereby broadening the portfolio of products to customers. In 2017, ALIA was purchased by Riverton Insurance Agency Corp.