Why Real Estate Brokers Need General Liability Insurance

General liability for real estate brokers is vital to the operation of any company that helps consumers buy and sell real property. Without it, a broker leaves himself or herself open to a variety of legal dangers.

What Does General Liability Cover?

The most important question to consider is what does a general liability policy cover. The answer is relatively simple. It covers most situations where you, as a broker, might be liable to a consumer for damages. This covers a few different situations.


If a client slips and falls or injures themselves while visiting your office, you could be liable for their medical expenses. This can involve a significant cost to you if you do not carry liability insurance.

Property Damage

Being a real estate broker means you are taking strangers into someone’s home. If your buyer accidentally or purposefully breaks or steals something in that home, you could be responsible for the damages. This is another situation that can result in financial loss.

What About Lawsuits?

Depending on the lawsuit, general liability or professional liability covers your and possibly your client’s costs. These lawsuits can result in thousands of dollars worth of damages, not to mention the damage to your reputation.

General liability protects you in your office and when you are showing other people’s property. It can aid you by paying the costs associated with injury, theft or property damage, which is why it is a vital part of any real estate broker’s insurance policy.