BOP for Real Estate Agents

[slp1962]

I know this may be based on the Real Estate company, but if a real estate agent is a W-9 employee and they are doing an Open House event: If someone would happen to fall down stairs or get hurt while attending the open house, would the real estate agent holding the event be liable or would the the Real Estate Agency or the homeowner of the home being shown. I am trying to figure out if the agent should have a BOP?

 

[rousemark]

I know this may be based on the Real Estate company, but if a real estate agent is a W-9 employee and they are doing an Open House event: If someone would happen to fall down stairs or get hurt while attending the open house, would the real estate agent holding the event be liable or would the the Real Estate Agency or the homeowner of the home being shown. I am trying to figure out if the agent should have a BOP?

Rule of thumb... Liable or not, everybody involved gets sued..

 

[slp1962]

So should a Real Estate Agent purchase a BOP? Do any, some, most Real Estate Agents BOP insurance?

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Sorry meant, "Do R/E Agents purchase BOP insurance"?

 

[rousemark]

So should a Real Estate Agent purchase a BOP? Do any, some, most Real Estate Agents BOP insurance?

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Sorry meant, "Do R/E Agents purchase BOP insurance"?

I haven't sold P&C for over 40 years and even then my experience was limited so I leave it to someone else to address the specific type of policy needed but a R/E agent certainly should have some type of coverage in case someone they are showing a property to gets hurt or someone gets hurt in an open house they are hosting. As I said, the old adage is "everybody involved gets sued" when something happens. Even if they are not liable, it could cost them a hunk of change in legal fees to prove it.

 

[prnc]

Always depends on policy but you would be held liable if there was a slip and fall at an open house you presented. Also other factors like serving alcohol could make the exposure greater. Generally, on a house being sold there will be very limited protection from the HO policy (if there even is one) since the house would be vacant. Feel free to message me if you have any other questions!

 

[InsCommentary]

From a liability standpoint, anyone with a business operation needs general liability coverage. So, yes, real estate operations qualify for BOPs from most carriers and they should also have real estate E&O coverage, not to mention auto coverage (either under a PAP or BAP, most likely the former). And be wary of RE agents that are considered to be independent contractors such that no workers comp coverage is needed...often they will be considered employees by the state labor department.

 

[MGBAgency]

Yes. There are thousands of reasons they need one. A W-9 is a private contract not employee. Exposure to liability is endless.

So should a Real Estate Agent purchase a BOP? Do any, some, most Real Estate Agents BOP insurance?

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Sorry meant, "Do R/E Agents purchase BOP insurance"?

 

[VolAgent]

There is no such thing as a W-9 employee. A W-9 is a request for Taxpayer Identification Number and is needed in numerous circumstances, including generating W-2s and all types of 1099s.

There are W-2 employees, statutory employees and independent contractors. For tax law, a real state agent is almost certainly an independent contractor. The state labor department may have a different opinion when it comes to worker's comp.

As Louise pointed out, everyone gets sued, especially anyone who is viewed as having deep pockets. A real estate agent holding an open house can expect to be sued for anything that happens. The local and national brokerage will almost certainly be named as well. And finally the property owner will likely be sued as well.