Real Estate E&O
A transaction can close—and the allegation can come later.
Real estate Professional Liability should reflect the licensees, services, transactions and ownership interests of the firm.
Classes that may require specialized coverage
Programs may be available for real estate agents, brokers, real estate agencies, property managers, leasing agents, referral-only licensees, appraisers, auctioneers, consultants and other related services. Eligibility and the appropriate policy form vary. Mortgage, title, escrow, development, construction and property ownership exposures may require separate underwriting or coverage.
Common allegations
- Failure to disclose or identify a material property condition
- Negligent misrepresentation of zoning, square footage, boundaries or permitted use
- Missed deadlines, documents, contingencies or instructions
- Breach of professional duty, dual-agency or conflict-of-interest allegations
- Property-management errors involving tenants, vendors or maintenance
- Discrimination or fair-housing allegations, where addressed by the policy
Application details
Prepare transaction counts and values by property type, services performed, licensee and employee counts, use of independent contractors, property-management revenue, geographic territory, ownership interests, claims history and quality-control procedures. Disclose whether the firm develops, constructs, owns, appraises, manages or sells property in which an insured has a financial interest.
Cyber and funds-transfer risk
Email compromise and fraudulent wiring instructions are major transaction risks, but an E&O policy may not cover the firm’s own stolen funds or every privacy event. Cyber, crime and social-engineering coverage should be reviewed separately.
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