What type of insurance is required by a brokerage operation?

A brokerage operation typically requires multiple types of insurance coverage to protect against various risks associated with their business activities. Professional liability insurance is essential as it covers claims related to errors and omissions in the brokerage's professional services. General liability insurance helps protect the brokerage from claims arising out of bodily injury, property damage, or personal injury that may occur during business operations. Additionally, commercial umbrella coverage provides an extra layer of protection by extending existing liability coverage, offering broader limits to safeguard the brokerage against unforeseen large claims.

Therefore, having all these types of insurance in place ensures that the brokerage is well-protected against a range of potential liabilities. This comprehensive approach to insurance is crucial for mitigating risks associated with real estate transactions and professional services, making it imperative for a brokerage operation to secure all these insurance types.