As the year comes to a close, you’re probably looking forward to some well-deserved time off over the holiday period.
However, the risks to your real estate business don’t take vacations.
Protecting your business is a year-round responsibility. Before you wind down for the festive season, it’s worth ensuring your business insurance is all set for 2025.
Why the end-of-year insurance check matters
It’s likely that throughout the year you’ve made some changes to your business. Whether you’ve expanded or downsized, your insurance cover should reflect those changes.
If you don’t regularly review your insurance policies, you may find yourself underinsured or exposed to liabilities you previously overlooked.
The following examples are just some of the reasons why it’s important to review your insurance policies regularly.
New employees
Have you hired new staff or entered into a new partnership? These developments could affect your insurance.
If you’ve taken on extra staff, then you may wish to consider purchasing or updating your Management Liability insurance.
Management Liability insurance is designed to provide protection to both the business and its directors or officers for claims of wrongful acts in the management of the business.
For example, if a claim of unfair dismissal or statutory breach of duty is brought against you.
Change in office location
If you’ve moved to new premises, then this could affect your insurance.
Whether you’ve relocated to a larger office, entered into a new commercial lease, or have set up your own home office, then you may wish to review your insurance.
A new office location canintroduce different risks, so it’s a good idea to be prepared by reviewing your Building and/or Contents insurance policies.
Evolving industry risks
Cyber threats in Australia are on the rise and real estate agencies are at a higher risk compared to many other small businesses.
Sensitive data collected by agencies – such as personal details and financial information – is highly valuable to cybercriminals.
As new and evolving cyber threats continue to emerge, Cyber Liability insurance is one way you can help protect your business from the financial fallout of cyberattacks.
This type of insurance covers losses from claims arising from data breaches, business interruption and remediation costs following an actual or threatened data breach.
Legal obligations
Another important reason to review your policies is to ensure that you’re still up to date with the latest laws and regulations.
As any real estate agent in NSW can tell you, Professional Indemnity insurance of not less than $3 million aggregate is a legal requirement.
Are there any new regulations in your state that require you to update your policies?
If you must hold Professional Indemnity insurance to comply with your local state or territory’s laws, then it may also be a good idea to make sure your policy has not lapsed and still meets your legal and professional obligations.
Preventing underinsurance
When you don’t have adequate insurance to help cover your business and replace your assets, then this means you are underinsured.
Underinsurance can leave your business vulnerable to serious financial loss if you suffer damages or losses that exceed your cover limit leaving you with out-of-pocket expenses.
The simplest way to avoid the risk of underinsurance is to review your policies regularly.
For example, if the value of your assets has increased, cost of living is higher, you’ve purchased new equipment, or maybe moved to a new location, then you should consider reevaluating your policies.
Start the new year with confidence
Protect your real estate business with BizCover. You can quickly and easily compare insurance quotes online from selected leading Australian insurers, so you can get back to the important business of planning your end-of-year holiday.
Having the right insurance for your business can give you peace of mind, allowing you to enjoy your summer holidays and return to the office feeling refreshed and ready for anything the new year brings.
For on the go cover, go BizCover or call 1300 805 821.
