In the insurance world, the worst time to find out you’re not covered is when a claim is filed — and yet that’s exactly when most real estate firms discover critical gaps in their policies.
From denied E&O claims to uninsurable cyber incidents, we’ve seen how assumptions about coverage can lead to costly surprises. The good news? A simple review now can prevent major headaches later.
3 Common Coverage Gaps That Catch Real Estate Firms Off Guard
- E&O Policy Limitations
Many brokerages assume their E&O policy protects the firm and all agents equally — but exclusions for certain activities, outdated policy language, or shared limits can leave key people exposed. Worse, some policies don’t include choice of counsel or defense cost coverage up front. - Cyber Liability Misunderstandings
Even firms that carry cyber insurance may be unaware of sublimits, high deductibles, or exclusions related to wire fraud and third-party vendors. Given the rise in phishing and transaction fraud, these gaps can be disastrous. - Employment Practices Liability Overlooked
If you have independent contractors, you might assume EPLI doesn’t apply — but claims involving discrimination, harassment, or wrongful termination can still hit your firm. Many GL and D&O policies exclude these entirely.
Why Gaps Happen — and How to Catch Them
Coverage gaps often occur because policies aren’t updated regularly, or because the firm’s business model has evolved. You might have more agents, expanded into new states, or taken on new legal responsibilities — without adjusting your insurance accordingly.
A fresh set of eyes on your current coverage can catch what’s missing, what’s redundant, and what could leave you vulnerable.
Protect Your Firm — and Your Peace of Mind
At RiskPoint / IMA, we offer no-cost coverage reviews for real estate brokerages, designed specifically to spot these hidden exposures. We go beyond the fine print to:
- Identify where coverage doesn’t match your actual risk
- Flag outdated or unclear policy terms
- Recommend smart updates based on current market trends
Think of it as a legal safety check — before something goes wrong.
Let’s schedule a quick review. Even if everything looks great, you’ll walk away more confident in your coverage. Read a pdf of this article here.
