Cyber insurance for real estate businesses
Cyber insurance, also called cybersecurity insurance, helps protect real estate businesses from the costs of data breaches, ransomware attacks, wire fraud, and other cybercrime. It can cover expenses such as customer notification, credit monitoring, legal fees, and regulatory fines.
Cyber insurance covers breaches in cybersecurity
Businesses in the real estate industry handle sensitive customer data and perform sizable transactions. That translates into a high risk of cyberattacks. If electronic data is stolen or compromised, your customers are at risk of theft—including identity theft—and they could sue your company.
When data is stolen or compromised, cyber insurance can cover legal defense costs and provide vital resources, such as credit monitoring for affected clients.
Do real estate businesses need cyber insurance?
While cyber liability coverage isn't typically required by law, many real estate professionals carry this coverage to help protect against the financial impact of cyber incidents.
If a data breach, ransomware attack, malware, or other social engineering event occurs, a cyber liability policy may help pay for:
- Notifying clients or customers about the breach
- Credit monitoring services for affected clients
- Public relations or reputational damage management efforts
- Cyber extortion and ransomware demands
- Data recovery
- Attorney's fees and other legal expenses
- Settlements or judgments
What does cyber insurance for real estate businesses cover?
Cyber insurance can help real estate brokers and agents recover from a wide range of cyber incidents. Coverage varies by policy, but many plans include protection for:
Data breach response expenses
If a cyber incident exposes client or business data, cyber insurance can help pay for expenses related to breach response. This may include:
- Customer notification costs
- Credit monitoring services
- Forensic investigations
- Public relations efforts
Business interruption costs
A cyberattack can disrupt daily operations and prevent your business from accessing critical systems or data. Cyber liability insurance can help replace lost income and cover certain ongoing expenses while your business recovers from a covered cyber event.
Legal defense and settlement costs
If a client, vendor, or other third party files a lawsuit after a phishing email incident, cyber insurance can help cover attorney's fees, court costs, settlements, and judgments associated with a covered claim.
Top real estate professionals we insure
How much does cyber insurance for real estate professionals cost?
Real estate professionals pay an average of $43 per month for cyber insurance, but you could pay more or less depending on your risks.
The cost of real estate professional insurance depends on the amount of personal information handled by your business, such as customer credit card numbers, along with the number of employees who can access that information.
What factors affect the cost of cyber insurance for real estate businesses?
The cost of your cyber insurance premium is based on several factors that insurers look at during the underwriting process, which can include:
- Real estate services offered: The types of services your business provides can affect your exposure to cyber risks. For example, businesses involved in property sales, purchases, or other transactions may face different risks than those providing property management or appraisal services.
- Amount of sensitive data handled: The more sensitive information your business collects and stores, the greater its potential exposure to a data breach. Businesses that handle large amounts of client, financial, or other personally identifiable information (PII) data, like Social Security numbers, phone numbers, and bank information, may pay more for coverage.
- Annual revenue: Your business's annual revenue can help insurers assess its size and overall risk exposure. Higher-revenue businesses may also need higher coverage limits, which can increase premiums.
- Location: Cyber risk and insurance costs can vary by state and location. Insurers may consider factors such as local regulations, the cost of responding to a data breach, and the frequency of cyber claims in your area.
- Number of employees: A larger workforce can increase your business's exposure to cyber threats, particularly if employees access business systems or sensitive information remotely. Insurers may also consider the size of your workforce when determining your premium.
- Coverage limits and deductible: The amount of coverage you choose affects your premium. Higher coverage limits generally cost more, while selecting a higher deductible can help lower your premium.
- Risk management and cybersecurity controls: Insurers may consider the security measures your business has in place to prevent and respond to cyber threats. Strong cybersecurity controls, such as multifactor authentication and regular data backups, can reduce your risk and may help lower your insurance costs.
- Claims history: Insurers may review your business's history of cyber incidents and insurance claims when determining your risk. A history of frequent or costly claims may result in higher premiums.
Other policies for real estate businesses to consider
While cyber liability insurance is essential for any business that handles sensitive data, it doesn't cover other common risks. Other insurance policies to consider include:
General liability insurance: A general liability policy covers common business risks like customer injury, damage to a customer’s property, and advertising injury.
Commercial auto insurance: This policy covers vehicles owned by your business. It typically pays for accidents and damages related to theft, weather, and vandalism.
Commercial umbrella insurance: Umbrella coverage provides additional protection for liability claims made on your general liability, commercial auto, or employer’s liability insurance policies, once the limit is reached.
Business owner's policy (BOP): This policy combines general liability insurance with commercial property insurance, typically at a lower rate than if the policies were purchased separately.
Errors and omissions insurance (E&O): Also called professional liability insurance, this policy can cover the costs of lawsuits related to the quality of your work.
Workers’ compensation insurance: Workers' comp is required in almost every state for real estate businesses that have employees. It can cover medical expenses for work-related injuries.
Lessor's risk only insurance: Sometimes referred to as LRO, this policy protects commercial landlords from tenant lawsuits over property damage and injuries.
Surety bonds: Real estate professionals sometimes need a surety bond to get licensed in their state. It acts as a financial guarantee they'll comply with contract terms and regulations.
Get free cyber insurance quotes and buy online with Insureon
Are you ready to safeguard your real estate business with cyber insurance?
Simply complete Insureon’s easy online application today. We partner with top-rated U.S. insurance companies to get you the best small business insurance. You can also consult with an insurance agent on the types of business insurance you need, and how to get affordable cyber coverage within your budget.
Once you find a policy that fits your needs, you can begin coverage and access your certificate of insurance (COI) in less than 24 hours.
What our customers are saying
The average costs on this page were derived from our data on small business owners in the real estate field who purchased policies through Insureon. Most of our customers have less than five employees, annual revenue ranging from around $50,000 to more than $200,000, and five years or less in business.
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