A real estate firm has more than one type of exposure
Brokerages and property-management businesses combine professional advice, client records, money movement, offices, contractors and visits to third-party properties. One policy rarely addresses every part of that picture.
Ontario registrants should understand the mandatory insurance program described by the Real Estate Council of Ontario. That program is important, but it should not be assumed to cover all exposures of the corporate entity, its office, staff, technology or property-management work.
Build the program around actual operations
A review may include:
- Errors and omissions or professional liability insurance for covered allegations arising from professional services
- Commercial general liability for office and premises-related injury or property damage claims
- Cyber insurance for privacy incidents, response costs and specified technology events
- Crime coverage for employee dishonesty, forgery or social-engineering loss where included
- Commercial property and business interruption insurance
- Directors and officers or employment-practices coverage when the organization and insurer appetite warrant it
The correct combination depends on whether the firm provides brokerage, property management, leasing, consulting or other services.
Wire fraud and client data need deliberate controls
Real estate transactions attract impersonation, phishing and payment-redirection attempts. Coverage for social engineering is often limited and may require specific verification procedures. Use an independently verified phone number before changing payment instructions, require more than one approval for significant transfers and train staff to escalate unusual requests.
The Canadian Centre for Cyber Security recommends baseline measures such as incident-response planning, automatic patching, strong authentication and employee training. These controls can also support an insurance submission.
Contracts can create uninsured obligations
Property-management and vendor agreements may contain indemnities, additional-insured requirements or assumptions of responsibility for building systems and contractors. Policy wording does not automatically expand because a contract requires it. Review new service lines and significant agreements with both legal counsel and your broker.
Information to gather
Prepare revenue by service, employee and registrant counts, office locations, use of independent contractors, transaction volumes, data practices, payment controls, claims history and copies of material contracts. Contact Westoak to compare the mandatory protections you already have with the wider risks of operating the business.