In today’s fast-changing risk environment, many real estate brokerages are operating with outdated or incomplete insurance coverage — and they often don’t realize it until it’s too late. With rising litigation, evolving cyber threats, and increasingly complex employment risks, a comprehensive commercial insurance review is no longer optional; it’s essential for long-term protection and business continuity.
1. General Liability: More Than Just Slips and Falls
General Liability (GL) coverage is foundational, but for many brokerages, it’s not enough to simply “have it.” The real question is: Do you have the right limits, endorsements, and scope of protection for your business today?
As brokerages expand into new service areas or open additional offices, their exposure widens — and so does the potential for claims. We frequently see GL policies that haven’t been updated in years, leaving gaps that can expose firms to lawsuits over client property damage, personal injury, or even misleading advertising claims.
A proactive review ensures your GL policy aligns with your current operations — not the way your business looked three years ago.
2. Cyber Risks: A Growing Threat to Real Estate Transactions
Cybercrime is no longer a distant risk for large corporations — it’s an everyday concern for real estate firms. Wire fraud, phishing, ransomware, and data breaches are all on the rise, and brokerages are prime targets due to the volume of sensitive client data they handle.
Agents often communicate via unsecured email or text, making it easy for criminals to impersonate them and redirect funds. One wrong click could lead to a six-figure loss or a lawsuit alleging failure to protect client data.
A cyber liability policy tailored to real estate operations can help cover breach response costs, legal fees, client notifications, and even extortion payments. More importantly, many policies now offer risk management tools and employee training resources — a critical layer of defense in this new digital battleground.
3. Employment Practices Liability Insurance (EPLI): Essential Coverage in a Shifting Legal Landscape
Even with independent contractor models, real estate firms are increasingly vulnerable to employment-related claims. Allegations of discrimination, harassment, wrongful termination, or wage disputes are becoming more common — and often costly.
EPLI provides coverage for defense costs and settlements arising from these claims. But here’s the catch: many brokerages assume they’re covered under general liability or directors & officers (D&O) policies, when in fact, they’re not.
And as employment laws continue to evolve — especially around independent contractors and remote work policies — EPLI has become one of the most important (yet overlooked) policies for real estate executives to review and understand.
4. Are There Other Exposures You’re Missing?
Depending on the size and structure of your firm, there may be additional insurance needs that are easy to overlook:
- Errors & Omissions (E&O) – Not just for agents; firm-level policies need reviewing, especially as transaction volume increases.
- Property & Business Interruption – Are your office spaces, equipment, and business income properly covered?
- Directors & Officers (D&O) – Critical for broker-owners and leadership teams making fiduciary decisions on behalf of the firm.
We’ve also seen increased scrutiny from insurers around policy exclusions, choice of counsel, and contractual liability clauses — all of which can dramatically affect how well your coverage performs when a claim arises.
Take Action: A No-Pressure, No-Cost Insurance Review
At RiskPoint / IMA, we specialize in supporting real estate firms with tailored insurance programs that reflect how you do business today — not how the market looked five years ago. Our process includes:
- A full review of current policies
- Identification of gaps, overlaps, and hidden exclusions
- Benchmarking against peers and industry best practices
- Recommendations for risk transfer strategies that make financial sense
We’re not just here to sell insurance — we’re here to be a strategic partner in helping you manage risk, protect your brand, and support your agents. Download a pdf of this article here.
Contact us for a quick consultation — or simply send us your current coverage summary for a second opinion.
