Real Estate Agent EPLI

Real Estate Agent and Broker Employment Practices Liability Insurance

Real estate agents have clients and employees, thus they are at risk for EPLI claims. Stratum Insurance Agency LLC can help with EPLI insurance for both private and non-profit entities. As the real estate industry begins to boom again, so does the potential for claims. Stratum works with multiple carriers to help businesses find policy and loss prevention resources for its customers.  A variety of options are available, including stand alone EPL policies and EPL options added to a business owners policy.

Why buy Employment Practice Liability Insurance?

• Employment Practices Liability covers not only actual but alleged acts of discrimination, harassment, retaliation and wrongful termination.
• Employment lawsuits can be brought by employees as well as volunteers or third parties. For example, a customer can sue you.
• Age discrimination lawsuits continue to be on the rise as the baby boomer generation ages and remains in the workforce.

Sample Real Estate Agent EPLI Sample Claims – consider these sample claims.

• Retaliation: A real estate agent was involved in a car accident in which he had to file a workers compensation claim. Soon after his return to work, he was let go from the real estate office for not being “able to do his job properly” as a result of his reduced mobility. He alleged the owner of the agency retaliated against him for filing a workers compensation claim. He sued and, after $22,000 in defense costs settled out of court for $45,000.
• Sexual Harassment: Two female real estate agents came forward saying that a male agent in their office had been making sexual references to them directly and to others about them for several years. The two women had repeatedly told the manager of the agency about the inappropriate comments but the manager failed to take action to resolve the situation, telling them to “get along like adults”and “don’t be so sensitive”. After approximately $32,000 in defense costs, the two women settled out of court for $50,000 each.
• Racial Discrimination: An African American filed a charge with the Equal Employment Opportunity Commission (EEOC) alleging racial discrimination based upon how the real estate agency manager distributed the lead list among the agents.The claimant said that because of her race she was not given the better leads in the higher-than-average home value neighborhoods so her commission potential was reduced. She contended that the better leads always went to the same two white females in the office. The EEOC found probable cause that discrimination had occurred. The matter was ultimately settled for around $67,000 with $23,600 in defense costs.
• Gender Discrimination: A male applicant, after not being hired by the general manager of a real estate firm, filed a claim for gender discrimination. The applicant claimed that the general manager only hired attractive young women (all under the age of 40) to be real estate agents. In his deposition, the general manager admitted that he believes women are better real estate agents. The claimant refused all settlement offers and the jury awarded him of $60,000.
• Age Discrimination: A female real estate agent in her late 50’s was terminated from a small, “boutique” real estate agency despite continued success selling and leasing condominium to young professionals in a large metropolitan city. The owner of the agency insisted that their young (under 30) clientele in the condominium and apartment rental segment of their business preferred to work with younger,“hipper” real estate agents. The agent filed a charge of age discrimination and wrongful termination with the EEOC and the state agency, both of which found probable cause. The case settled prior to trial for $185,000 in addition to defense costs of $50,000.

Request a quote for EPLI (employment practices liability insurance).

This document does not amend, extend or alter the coverage afforded by a Policy. For a complete understanding of any insurance you purchase, you must first read your Policy,
Declaration Page and any Endorsements and discuss them with your Broker. A specimen policy is available from an Agent of the Company. Your actual Policy Conditions may be
amended by Endorsement or affected by State Laws.