Real estate agents are an integral part of the real estate industry. They help people buy and sell homes. Real estate agents face dangers like other professions. One such risk is the possibility of an on-the-job injury. Workers’ comp covers this.
The National Association of Realtors reported 1.3 million real estate agents and brokers in 2020. Slips, falls, repetitive motion injuries and even attacks by dissatisfied clients are daily risks for these professions. 2019, the BLS reported 2.5 injuries and illnesses per 100 full-time real estate agents and brokers.
Workers’ compensation insurance protects real estate brokers and companies from these hazards. This article will explore why workers’ comp is essential for real estate agents, what it covers, and how to obtain it.
Do real estate agents need workers comp?
Yes, workers’ compensation insurance is essential for real estate agents and brokers. This isn’t just a recommendation—it’s been a necessary aspect of the profession in many states since 2004. Whether you’re primarily showing houses or working away from a traditional office setting, this coverage is crucial. For brokers, the moment you bring on your first employee, whether they’re an independent contractor or not, obtaining workers’ compensation insurance becomes a requirement. This is vital for compliance with state laws and the protection and assurance it provides to your team.
State-Specific Regulations: It’s important to note that the requirements for workers’ compensation vary by state. For instance, in California, all brokers with employees must provide this insurance, regardless of whether their agents are independent contractors or regular employees. However, the rules can differ in other states, making it essential to be well-informed about the specific regulations in your area.
What are real estate agents liable for?
Real estate agents carry a significant responsibility in their fiduciary duties to clients. This includes ensuring that all property information is accurate, disclosing any known issues or defects with properties, and treating all parties involved in a transaction fairly. If an agent knowingly fails to reveal a significant problem with a property, they can be held liable for any losses incurred by the buyer. Moreover, agents are responsible for avoiding misrepresentations or omissions about properties.
Broker Responsibilities: Real estate brokers are responsible not only for the actions of their agents but also for their professional conduct. This includes performing due diligence on properties and effectively representing their client’s interests in transactions. Neglecting these duties can result in serious repercussions, both legally and professionally.
Do real estate agents need to have workers comp, and who do real estate agents work for?
Real estate agents serve clients interested in purchasing, selling, or renting properties. Independent contractors who represent either the buyer or the vendor in real estate transactions. Real estate agents can work for a broker or Realtor who provides additional training and support.
These brokers help sellers set a realistic asking price by conducting comparative market research, evaluating the property’s finest selling points, and determining where to invest money to boost value.
Real estate agents conduct administrative and income-generating responsibilities daily.
The price, advertise, present, negotiate, and handle real estate paperwork.
They assess clients’ needs and finances to estimate property values and perform comparative market evaluations.
Real estate associates sell or lease properties and sometimes work in commercial or residential real estate.
What coverage can workers’ comp insurance provide for real estate agents?
Workers’ compensation covers work-related injuries and illnesses. It also protects real estate agents who work for an agency.
Workers’ compensation insurance covers medical bills, lost earnings, rehabilitation, and other costs for injured workers. If a real estate agent shows a property to a customer and falls down the stairs, their employer’s workers’ compensation insurance may cover their medical bills and lost wages.
Workers’ compensation may not cover Independent real estate agents. People may need workers’ compensation insurance to protect themselves from occupational injuries.
Real estate agents’ workers’ compensation coverage depends on whether they are employees or independent contractors and their employer’s or personal insurance policy.