Real Estate School Insurance Policy Information
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 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 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.
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.
Below are some answers to commonly asked real estate school insurance questions:
- What Is Real Estate School Insurance?
- How Much Does Real Estate School Insurance Cost?
- Why Do Real Estate Schools Need Insurance?
- What Type Of Insurance Do Real Estate Schools Need?
- What Does Real Estate Insurance Cover & Pay For?
What Is Real Estate School Insurance?
Real estate school insurance is a type of insurance policy designed to protect real estate schools and their students.
This insurance covers the school and its instructors against claims made by students, such as those arising from professional liability, errors and omissions, and defamation. It also provides coverage for physical damage to the school's facilities, theft or loss of school equipment, and other related risks.
The purpose of this insurance is to protect the financial stability of the school and to provide peace of mind for its students and instructors.
How Much Does Real Estate School Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small real estate schools ranges from $37 to $59 per month based on location, size, revenue, claims history and more.
Why Do 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 real estate school insurance coverage.
What Type Of Insurance Do 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 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 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 real estate school insurance coverage that are suggested, you might need more based on your unique operations.
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.
What Does Real Estate Insurance Cover & Pay For?
Real estate schools can be sued for a variety of reasons, such as:
- Breach of contract: If a student or client believes that the real estate school did not fulfill its contractual obligations, they may sue the school for breach of contract. For example, if a real estate school promises job placement after graduation but fails to deliver, a student may sue for breach of contract.
- Negligence: If a real estate school fails to provide adequate training or instruction, resulting in harm to a student or client, they may be sued for negligence. For example, if a student is injured during a hands-on training exercise because the school failed to provide proper safety equipment or training, the school may be held liable.
- Discrimination: Real estate schools can also be sued for discrimination if they violate anti-discrimination laws. For example, if a school refuses to admit students based on their race or ethnicity, they may be sued for discrimination.
- Misrepresentation: If a real estate school makes false or misleading statements about their services or qualifications, they may be sued for misrepresentation. For example, if a school claims to be accredited but is not, they may be sued for misrepresentation.
Insurance can help protect real estate schools from lawsuits by providing coverage for legal fees and damages. For example:
Professional liability insurance: This type of insurance, also known as errors and omissions insurance, can help protect real estate schools from lawsuits related to professional negligence, such as failure to provide adequate training. If a school is sued for negligence, their professional liability insurance can help pay for legal fees and any damages awarded.
General liability insurance: This type of insurance can help protect real estate schools from lawsuits related to bodily injury or property damage. For example, if a student is injured during a hands-on training exercise, the school's general liability insurance can help pay for legal fees and any damages awarded.
Employment practices liability insurance: This type of insurance can help protect real estate schools from lawsuits related to discrimination or wrongful termination. If a school is sued for discrimination, their employment practices liability insurance can help pay for legal fees and any damages awarded.
In summary, real estate schools can be sued for various reasons, and insurance can help protect them by providing coverage for legal fees and damages. Professional liability insurance, general liability insurance, and employment practices liability insurance are some of the types of insurance that can help protect real estate schools from lawsuits.
Commercial Insurance And Business Industry Classification
- SIC CODE: 8249 Vocational Schools, Not Elsewhere Classified
- NAICS CODE: 611519: Other Technical and Trade Schools
- Suggested Workers Compensation Code(s): 8868 School - Professional Employees & Clerical, 9101 School - All Other Employees
8249: Vocational Schools, Not Elsewhere Classified
Division I: Services | Major Group 82: Educational Services | Industry Group 824: Vocational Schools
8249 Vocational Schools, Not Elsewhere Classified: Establishments primarily engaged in offering specialized vocational courses, not elsewhere classified. Also included in this industry are establishments primarily engaged in furnishing educational courses by mail. Offices maintained by such schools for the sale of correspondence courses are included. Beauty schools are classified in Industry 7231, and barber schools are classified in Industry 7241. Establishments primarily engaged in offering flying instruction are classified in Industry 8299. Schools offering academic degrees are classified in Industry Groups 821 and 822.
- Aviation schools, excluding flying instruction
- Banking schools (training in banking)
- Commercial art schools
- Construction equipment operation schools
- Correspondence schools, including branch offices and solicitors
- Nursing schools, practical
- Real estate schools
- Restaurant operation schools
- Trade schools
- Truck driving schools
- Vocational apprenticeship training
- Vocational schools: except high schools, data processing, or business
Real Estate School Insurance - The Bottom Line
To learn more about the specific types of 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.
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.
- Art School
- Beauty School
- Charter School
- Chiropractic Schools
- Colleges, Universities & Professional Schools
- Driving Schools
- Educational Services
- Language School
- Music Schools
- Private Schools
- Real Estate School
- Specialty Schools And Education
Education, colleges, universities, and schools are integral parts of our society, responsible for shaping the minds and futures of our youth. These institutions have a significant impact on the community and play a vital role in the growth and development of our society.
However, as with any business, education institutions also face a variety of risks and challenges. These risks can range from accidents and injuries on campus to financial loss due to lawsuits or property damage.
In order to protect against these risks and ensure that they can continue to provide high-quality education to their students, it is essential for education institutions to have business insurance. This insurance can provide coverage for a variety of potential issues, including:
Liability: If a student is injured on campus or a teacher is sued for misconduct, education institutions can be held liable. Liability insurance can provide coverage for legal fees and settlements, helping to protect the institution's financial stability.
Property damage: Natural disasters, fires, and other unexpected events can cause significant damage to education institutions. Commercial property insurance can provide coverage for repairs and replacements, helping to minimize the financial impact of these events.
Loss of income: If an education institution is forced to close due to an unforeseen event, such as a pandemic, it can result in significant financial loss. Business insurance can provide coverage for lost income, helping to mitigate the impact on the institution's financial stability.
In conclusion, education institutions, such as colleges, universities, and schools, need insurance to protect against the various risks and challenges they face. This insurance can help to ensure that these institutions can continue to provide high-quality education and support to their students and communities.
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.