Michigan Real Estate School Insurance

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Michigan Real Estate School Insurance Policy Information

MI Real Estate School Insurance

Michigan Real Estate School Insurance. In many areas of the United States, the real estate industry is booming.

Real estate schools provide required courses for those who must meet their state's licensing requirements in order to act as a real estate salesperson or broker. Real estate schools operate at office locations or at off-site facilities such as community colleges, libraries, hotels, or other locations having conference rooms or classroom space.

The courses offered must meet state requirements and are reviewed regularly. The schools provide the instructors and the textbooks. They must meet mandatory MI state-certification requirements concerning student attendance and maintain the records needed to document that attendance. Most states require candidates to complete a certain number of classroom hours of instruction before being permitted to sit for the state-mandated licensing exam.

Once licensed, the realtor is usually subject to a continuing education requirement that must be satisfied in order to maintain a valid license.

As an experienced agent yourself, you'd like to provide those who are interested in starting a career in the real estate industry with the education and practical knowledge that they need in order to become a licensed agent and achieve the success that they desire. That's why you've decided to start a real estate school.

From choosing a facility to hiring faculty and staff, and from purchasing equipment and materials and making sure that everything is organized, there's a lot that you need to do in order to set yourself up for success.

When you're creating your list of things to do to prepare your real estate school for opening day, there's one thing that you are definitely going to want to make sure you include on the top of your list: investing in the right type of insurance coverage.

Why do you need insurance? What type of Michigan real estate school insurance coverage do you need to have? To find the answers to these questions and more, keep on reading so that you can make sure that you set yourself up for success.

Michigan real estate school insurance protects your education business from lawsuits with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.

Why Do MI Real Estate Schools Need Insurance?

As the owner and operator of a real estate school, you are tasked with a lot of responsibilities. You need to make sure that the teachers you employ are properly trained and that they are providing the students who enroll in your school with the education they require in order to seek a career in the real estate industry.

You have to ensure that your facility is safe for both your students and your staff. Those are just a few examples of the things that you are responsible for. In the event that something goes wrong, you'll be responsible for the related expenses. If your property is damaged in a storm, the school has to be closed down for a while, and the facility needs to be repaired, you could be looking at major financial losses.

If a student brings a lawsuit up against your school, claiming that a faculty member committed a wrongdoing (whether the claim is credible or not), you'll have to cover the cost of the legal defense fees, as well as any settlement fees that you may be found liable for.

Imagine the exorbitant costs that could be associated with the above-mentioned examples of things that could go wrong. If you had to pay those expenses out of your own pocket, you could be looking at serious financial losses; however, if you're properly insured, the company that carries your policies will cover those expenses.

In other words, insurance can help you avoid major monetary losses; not to mention the fact that in order to operate legally, real estate schools are required to carry certain types of Michigan real estate school insurance coverage.

What Type Of Insurance Do Michigan Real Estate Schools Need?

The specific type of coverage that a real estate school will need to invest in depends on several factors. To find out exactly what type of policies you'll need, consulting with an experienced agent is strongly recommended.

With that said, however, here's a look some of the Michigan real estate school insurance policies needed:

  • Commercial Property - This policy will cover the physical structures that your school operates out of, as well as the contents within those buildings, from damages that occur as a result of fire, natural disasters, theft, and vandalism.
  • General Liability - . In the event that a third-party files a lawsuit against your school citing personal or physical injuries or property damages, this Michigan real estate school insurance policy will cover your legal defense fees, as well as any settlement money that you may be required to pay.
  • Workers' Compensation - As an employer, you're responsible for providing your staff with a safe work environment. If one of the employees of your real estate school suffers a work-related injury or illness, this insurance will cover the costs of the medical care that they may require. It could also reimburse them for any wages that they might lose if they are unable to work while recovering.

These are just a few examples of the type of Michigan real estate school insurance coverage that are suggested, you might need more based on your unique operations.

MI Real Estate School's Risks & Exposures

Premises liability exposures are usually minimal, especially when classes and testing are conducted at facilities owned by others. If there is public access to the premises, all areas must be properly maintained with floor coverings kept in good condition. Steps and uneven floor surfaces should be prominently marked. Because evening classes may be offered, there should be sufficient exits with backup lighting systems in case of power failure.

Parking lots and sidewalks should be kept free of ice and snow. If contract instructors are used, written contracts should clearly detail the services the school provides to the subcontractors and the expectations the agency has of instructors.

Because the primary exposure from classes is off-site, the school should have signed contracts with the organization providing the classroom and testing space. Personal injury exposures include allegations of assault and battery, discrimination, invasion of privacy, and wrongful expulsion.

Professional liability exposures can arise due to allegations of copyright infringement if the school publishes its own textbooks and study notes. A review process should be in place to monitor instructional material.

Workers compensation exposures are from office operations and instruction conducted off-site. Ergonomic concerns at the office include eyestrain, neck strain, carpal tunnel syndrome, and similar cumulative trauma injuries that can be addressed through ergonomically designed workstations.

When schools offer instruction throughout the state, drivers may be injured in vehicle accidents.Custodians can develop respiratory ailments or contact dermatitis from working with chemicals.

Property exposures are light. Ignition sources are generally limited to electrical wiring, heating and air conditioning systems. All wiring must be well maintained and meet current codes. Combustibles consist of students' records that must be stored and maintained to comply with state requirements.

Crime exposures are from employee dishonesty and theft of money and securities. Background checks should be conducted on any employee handling money. If students can pay at the door instead of pre-registering, receipts should be provided.

Cash drawers must be regularly stripped and bank deposits made on a timely basis to prevent a large buildup of cash. Duties must be separated and books must be audited both internally and externally on at least an annual basis.

Inland marine exposures consist of accounts receivable for payments from students, computers, a special floater for property used off-site, and valuable papers and records. The records on file are typically originals of student records and approvals that are difficult to re-create.

A morale hazard may be present if the insured does not keep valuable papers and disks in safes or fireproof file cabinets or receptacles to protect them from smoke, water, and fire damage.

Power failure and power surge are potentially severe hazards. Surge protectors should be used. Duplicate records should be stored off-site to allow them to be re-created if a loss occurs.

Business auto exposures are generally limited to hired and non-owned. If vehicles are provided to employees, all drivers must have appropriate licenses and acceptable MVRs. There should be written procedures regarding personal use by employees and their family members. All vehicles must be well maintained with records kept at a central location.

Michigan Real Estate School Insurance - The Bottom Line

To learn more about the specific types of Michigan real estate school insurance policies you'll need, and how much coverage you should have and the premiums, consult with a reputable broker that is experienced in commercial insurance.

Michigan Economic Data And Business Insurance Requirements

Business owners who are interested in establishing operations Michigan must have a thorough understanding of the state's economy. They should also familiarize themselves with any regulations and limits that state may have in place for commercial insurance.

Made In Michigan

Any entrepreneur who is thinking about starting a business in the Great Lake State first needs to determine if it's a feasible location for business operations. As such, it's important to have a keen understanding of pertinent details regarding the economy of Michigan, in addition to the types of insurance coverage that are mandatory for corporations that operate within the state.

Economic Trends for Businesses In Michigan

After a long period of stagnant job growth in the early part of the 21st century, MI has been experiencing a steady increase in employment gains. Between 2009 and 2018, the state has enjoyed a period of uninterrupted job growth; the longest stretch of job growth since World War II. According to economists at the University of Michigan. While there has been a slight decline in the rate of job growth, job creation continues and forecasters say will continue for the next two years, into 2021.

In 2018, an estimated 55,200 jobs were created; in 2019, it's expected that 35,800 jobs will be created, and in 2020, economists believe that there will be a total of 39,300 jobs created in Michigan. While that rate of growth is 1.9 percent slower than the job growth rate between 2011 and 2016, it is still a steady increase overall. In total, approximate 683,200 jobs will be created in MI between 2099 and 2020; almost four out of the five jobs that were lost during the early part of the 21st century will be recovered.

While the unemployment rate has steadily improved, it is still above the national average. In March of 2019, the national unemployment rate was 3.8 percent, while in the state of Michigan, it was 4.0 percent. Mid-Michigan has experienced the largest growth rate in the state, and according to forecasters, it looks like that trend will continue, moving forward. Industries that are expected to see the most growth include:

  • Energy, due largely to research and development in clean energy
  • Food and agriculture
  • Water
  • Transportation and mobility
  • Healthcare industry
  • Information and technology

In the state of MI, business owners are not legally required to carry liability insurance; but most entrepreneurs opt to invest in a General Liability or Business Owner's Policy (BOP). A commercial auto insurance policy is also required for any businesses that use motor vehicles to conduct any aspect of their business operations. Workers' compensation insurance is also required for any businesses with non-owner employees. While the following forms of coverage are not required, depending on the type of business you operate, they are recommended:

  • Data breach insurance
  • Business income insurance
  • Commercial Umbrella insurance

Additional Resources For Education, Colleges, Universities & Schools Insurance

Learn about small business commercial insurance for educators that helps protecting your professional reputation and other legal liabilities arising from your educational services.


Education, Colleges, Universities And Schools Insurance

The exposures of one individual educational institution may be totally different from those of another. Because of this, comprehensive surveys of each facility are needed to accurately determine the proper insurance program needed by each.

While the exposures may be significantly different, they have the common component of educating a student and providing faculty that is competent and facilities that are safe for learning.

Many of these institutions have a number of buildings, extensive grounds, and expensive equipment. Comprehensive property and liability insurance is crucial, as is protection and coverage for tuition income, athletic events, teachers’ liability and many other exposures.

Educators' Legal Liability (ELL) coverage provided by insurers may have significant differences. It is important to compare what is available to meet the exposures and financial needs of a given educational institution or school district. Different ELL forms may even have substantially different insuring agreements. There are three main types of insuring agremeements in ELL policies:

Insuring Agreement A: The language in this agreement refers to coverage being provided contingent on receiving the policy premium. It states that coverage is subject to all relevant policy provisions. The carrier also states that the policy issuance is a result of completely relying on the accuracy of the information provided by the applicant/insured. This agreement refers to a Self Insured Retention .

Insuring Agreement B: This company's agreement is worded similarly to the language found in most standard commercial policies. It states that the company will pay on behalf of an insured that faces an allegation of performing a wrongful act. It also states that it will not respond to acts that occur before either the policy's effective date or the applicable retroactive date.

Insuring Agreement C: The language in this carrier's agreement is more specific. It makes reference to paying on behalf of an insured due to liability involving eligible, education operations acts. It also contains wording that reflects its claims-made basis of coverage.

Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income and Extra Expense, Employee Dishonesty, Money and Securities, Accounts Receivable, Commercial Articles Floater, Computers, Valuable Papers and Records, General Liability, Directors and Officers, Employee Benefits, Professional, Umbrella, Business Auto Liability and Physical Damage, Hired and Nonownd Auto & Workers Compensation.

Other commercial insurance policies to consider: Earthquake, Equipment Breakdown, Flood, Spoilage, Computer Fraud, Extortion, Animal Floater, Contractors' Equipment, Fine Arts, Musical Instruments, Theatrical Floater, Cyber Liability, Employment-related Practices, Stop Gap Liability and Active Shooter.


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