Protecting real estate agents in a riskier market

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Through targeted E&O protection and proactive guidance, Victor Insurance helps agents confront shifting exposures in an unpredictable market

For decades, insurers have absorbed losses after disaster strikes. Today, the expectation has shifted toward anticipating emerging risks, reducing claim frequency, and addressing coverage gaps – particularly within the complex sphere of real estate E&O insurance. As environmental pressures, regulatory scrutiny, and market instability grow, real estate professionals are confronting a wider range of liability exposures that demand a more forward-looking approach to underwriting and risk management. For Steven Stecker, senior vice president and real estate E&O program leader at Victor Insurance, this shift represents both a warning and an opportunity. “The exposures that agents face today are broader and more complex than at any point in recent memory,” he says. “Physical injury, communication practices, even questions around insurability of properties are all intersecting with professional liability. That demands a different underwriting approach.”

Victor Insurance is one of the world’s largest managing general underwriters with locations in the US, Canada, UK, Netherlands, Germany, Italy, and Australia. It handles more than $3.7 billion in premium on behalf of numerous insurance and reinsurance relationships, through a large network of more than 20,000 active insurance agents and brokers. With deep, specialized underwriting expertise, the company provides a wide range of insurance solutions – from specialty property and casualty and professional liability insurance to group and retiree benefits. Victor is committed to building on 65-plus years of experience to develop products that address risk in new and evolving areas.

“Coverage has to reflect the real-world conditions agents and brokers face. You can’t separate professional duty from physical or environmental risk anymore”

Steven Stecker, Victor Insurance

Insurance agents in a meeting with client

Published Nov 3, 2025

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“Automation has streamlined client communication, but it also magnifies exposure. Even one noncompliant message can result in a claim. For small brokerages, the defence costs alone can be crippling”

Steven Stecker, Victor Insurance

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Real estate agent risksThe first layer of risk in real estate isn’t theoretical – it’s physical. Every showing, open house, and property visit brings a degree of uncertainty that goes well beyond the transaction. Agents routinely meet clients alone, enter vacant or unfamiliar homes, and navigate sites with uneven surfaces, poor lighting, or unfinished work. According to the NAR 2024 Member Safety Residential Report, 86 percent of agents have shown properties alone, 40 percent have met clients in isolated locations, and 48 percent have worked in areas with poor cell coverage. Nearly one in four said they had felt unsafe while on the job. Beyond the threat of physical harm, these situations can expose agents to liability if they are accused of negligence or failure to warn clients about hazards during property showings. However, most real estate E&O policies do not cover bodily injury sustained by agents during property showings. To close this gap, Victor’s 2025 real estate E&O policy introduces Agent Protection, a new feature that provides up to $50,000 per policy period for reasonable medical expenses if an agent is injured while performing professional duties on a residential property due to the actions of a third party. These payments are supplemental, are not subject to a deductible, and require a timely police report to qualify. Agent Protection offers agents direct bodily injury coverage within their E&O policy, aligning protection with the realities of the profession and reinforcing Victor’s focus on practical solutions that support real estate agents in the field.

Market pressure and expanding liabilityBeyond personal safety, agents are now navigating market conditions that are transforming the very definition of risk. Climate volatility has begun to dictate how property is valued, financed, and insured. In 2024, the United States experienced 27 separate weather or climate disasters, each causing more than $1 billion in damages, according to NOAA. Between 1980 and 2024, the average was just nine per year; over the past five years, that figure has soared to 23. For real estate professionals, these shifts reach directly into their work. Buyers now weigh the cost and availability of

insurance as part of their purchasing decisions, while sellers face stricter disclosure obligations around insurability. “Insurance availability has become part of the property conversation,” Stecker notes. “When clients ask whether a property is insurable or what coverage will cost, the agent often feels compelled to help. That can create liability if the information later proves incomplete or inaccurate.” This dynamic is changing the boundaries of professional advice. A casual comment about risk zones or a property’s eligibility for insurance can later be viewed as advisory guidance. This exposes agents to claims if clients perceive that advice as misleading. Brokers placing E&O coverage must now ensure that forms respond to these gray areas, where professional duty and environmental uncertainty intersect. TCPA and communication riskWhile market volatility defines the external environment, communication and data-related liabilities are rising in parallel. The Telephone Consumer Protection Act (TCPA), originally intended to restrict telemarketing, now governs a range of digital outreach methods. Agents frequently use automated texts, voicemail drops, and online platforms to share listings or follow up on leads. Without documented consent, these efforts can violate TCPA provisions, exposing agents to statutory damages. A single outreach campaign can involve hundreds or thousands of potential violations, making class actions especially costly.

“Automation has streamlined client communication, but it also magnifies exposure,” Stecker says. “Even one noncompliant message can result in a claim. For small brokerages, the defence costs alone can be crippling.” To address this, Victor has refined its policy language to provide up to $50,000 in coverage per policy period for reasonable and necessary legal fees and expenses incurred in responding to actions under the TCPA. This addition complements the broader suite of protections in the firm’s E&O program, which also includes defence cost reimbursement for licensing proceedings and coverage for cyber-related identity theft – features designed to reflect how agents now conduct business in both physical and digital environments. The point, Stecker emphasizes, is not simply to expand coverage but to align it with reality. “Agents aren’t just selling properties anymore; they’re managing data, expectations, and personal safety,” he says. “Our job as underwriters is to make sure the policy lives where they do.”

A broader recalibration of E&OThese combined forces, climate-driven property volatility, physical safety threats, and regulatory risk are altering both the pattern and frequency of E&O claims. Allegations of misrepresentation and negligence and non-disclosure remain common, but they increasingly coexist with bodily injury, privacy, and compliance components. A client injured at an open house may allege the agent failed to warn about a property’s condition. A buyer who cannot secure homeowner’s insurance might claim the agent misrepresented the property’s insurability. Each case demands coordination between E&O, general liability, environmental, and sometimes cyber policies to determine where coverage begins and ends. For brokers, this complexity is changing how they approach placement. The focus is shifting from pricing and limits to integration and language. Policy definitions, exclusions, and triggers must align with how professionals actually operate. These are often across digital platforms, client locations, and regions increasingly shaped by extreme weather. Clarifying how bodily injury, advisory exposure, and communication liability are treated within E&O coverage is part of that recalibration. “Coverage has to reflect the real-world conditions agents and brokers face,” Stecker says. “You can’t separate professional duty from physical or environmental risk anymore.”

The ground-level perspectiveIf there’s a unifying lesson behind these shifts, it’s that understanding risk requires proximity. “There’s a tendency to over-think solutions when sometimes what’s needed is just seeing how people work day to day,” Stecker says. “When you’ve been at a showing, or the one taking the call from an anxious client, you recognize how small missteps can turn into claims.” That ground-level understanding is what guides Victor’s underwriting philosophy. The goal is not just to indemnify professionals after the fact but to help them recognize exposures before they become claims, whether that’s walking a property, vetting a client, or sending a digital

message. “Risk management isn’t about predicting the perfect scenario,” Stecker adds. “It’s about preparation and knowing the landscape and understanding what can go wrong before it does.” For the brokers placing Real Estate E&O coverage, that perspective carries weight. The work of protecting real estate agents is no longer about static policy language but about staying close to where the risks originate. Every conversation about coverage is also one about behavior, safety, and awareness. The modern real estate professional works in an environment defined by volatility and expectation, where the smallest lapse can have consequences and the best defence is informed preparation. The industry’s role is to protect real estate agents and brokers from losses arising from professional services, negligence, or claims made by clients, along with providing risk management support to ensure agents and brokers can operate confidently while mitigating legal and financial exposures.

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Always own or license photos, videos, and music used in listings Secure performing and synchronization licences before adding music to videos Keep written proof of permissions to confirm rights if challenged Follow the DMCA safe-harbor rules, and store agreements for quick reference

Source: 2024 NAR Member Safety Report

Agent safety starts with smart precautions

86% of real estate agents have shown properties alone 40% of real estate agents have met clients in isolated locations 48% of real estate agents have worked in areas with poor or no cell coverage 22% of real estate agents have experienced situations causing fear for personal safety

Source: NAR Legislative

Agent safety starts with smart precautions

Source: Activeprospect.com

TCPA enforcement and impact

TCPA fines range from $500 to $1,500 per violation, potentially leading to 10s of millions of dollars for large-scale marketing campaigns TCPA class actions filed in the first 3 months rose from 239 in 2024 to 507 in 2025, a 112% increase Real estate franchise Keller Williams was hit with a $40M settlement in 2023

Source: Activeprospect.com

TCPA enforcement and impact