Question 1

What is a common misconception about Professional Liability (E&O) for Real Estate Agents & Brokers?

Accepted Answer

Agents think their broker's policy covers them fully. Many policies require the agent be specifically named or have limits per agent.

Question 2

What happens if real estate agents & brokers don't have Professional Liability (E&O)?

Accepted Answer

Buyers sue alleging undisclosed foundation issues — settlement $80K. E&O pays.

Question 3

What is a common misconception about Cyber Liability for Real Estate Agents & Brokers?

Accepted Answer

Brokerages think title companies handle wire transfers. Buyers can be tricked by emails impersonating the agent or broker — and the buyer's loss often becomes the brokerage's headache.

Question 4

What happens if real estate agents & brokers don't have Cyber Liability?

Accepted Answer

BEC scam tricks a buyer into wiring $185K closing funds to fraudster. Brokerage funds-transfer fraud coverage helps protect/defend; without it, clients sue brokerage for negligent communications.

Question 5

What is a common misconception about General Liability for Real Estate Agents & Brokers?

Accepted Answer

Open-house slip/fall is real exposure.

Question 6

What happens if real estate agents & brokers don't have General Liability?

Accepted Answer

Open-house visitor falls — $20K. GL pays.

Question 7

What is a common misconception about Employment Practices Liability (EPLI) for Real Estate Agents & Brokers?

Accepted Answer

1099 vs. W-2 status disputes are increasing in real estate.

Question 8

What happens if real estate agents & brokers don't have Employment Practices Liability (EPLI)?

Accepted Answer

Misclassification suit alleges agents were employees — defense $80K. EPLI pays.

Question 9

What is a common misconception about Commercial Auto for Real Estate Agents & Brokers?

Accepted Answer

Agents drive constantly to showings — hired/non-owned auto exposure.

Question 10

What happens if real estate agents & brokers don't have Commercial Auto?

Accepted Answer

Agent on showing causes accident — brokerage named in suit. Hired/non-owned pays.

Real Estate Agents & Brokers Coverage Guide | RISKX