FINANCE
Real estate agents know better than anyone that it can be feast or famine out there – and right now , few are feasting . According to PayProp ’ s latest State of the Rental Index Survey , more than half have cut their commission to keep clients onboard . At times like these , it ’ s tempting to avoid any expenses that don ’ t offer immediate or direct returns .
But what if the pay-off IS immediate , and it ’ s called peace of mind ? How much is it worth to you to be able to carry on doing business when fraud , negligence or external sabotage can leave you liable for vast amounts in legal claims and fees ?
No business owner would deny the value of being able to sleep at night , knowing they ’ ve done everything they can to take care of their shareholders , staff , clients and their own professional reputation and peace of mind .
Whatever boxes you ’ re ticking to stay on the safe side – data security , disaster recovery or business cover – it ’ s all insurance against the unforeseeable . In return for a low monthly rate , you can get business survival and personal indemnity against major losses .
What uninsured practitioner wouldn ’ t trade out of such a desperate position , when they need to ?
Managing other people ’ s money – what can go wrong ? According to the Association of Certified Fraud Examiners ’ 2022 report on fraud , organisations worldwide are losing $ 4.7 trillion to occupational ( employee ) fraud each year , with real estate leading the pack as the industry with the highest median losses .
Why is that ? Real estate businesses are unique among non-financial institutions in dealing with large and frequent in- and outflows of client money ( sales deposits and rental monies ). As a result , they ’ re highly vulnerable to negligence or criminal actions – within or outside the business .
In this economic and trading climate , you cannot afford to risk your business ’ s reputation . Luckily , insurance products including fidelity guarantee and professional indemnity insurance can help .
73 JUNE / JULY 2023 SA Real Estate Investor Magazine