While there are many great opportunities provided for real estate businesses, there are also certain risks that should be protected against. A real estate business depends entirely on its agents and its clients, so if there are any issues that threaten either of those groups, it could be detrimental for the business. Here are a few common risks that every real estate business should guard against.

Auto Accidents

One risk that you should guard against and be aware of is auto accidents. While this can seem like a risk that anyone could have, real estate agents and businesses might have special liabilities with auto accidents. When your agents are using automobiles, make sure that they are putting safety practices into place to protect themselves from the possibility of accidents. Having an agent be injured or killed in an accident would be devastating. It can also help to have commercial auto insurance to protect the business vehicles that you use. This will help your business to avoid any difficult financial consequences as a result of an accident.

Data Breach

Another type of risk that you need to guard against as a real estate agent is data breaches. Websites are incredibly useful in real estate, but they can also be a point of vulnerability. Real estate websites are usually used to collect large groups of data, including information about different properties and their availability. These websites can also be used to store personal client information, such as their payment information or personal details. If there is a data breach and client information is lost, you could face serious legal consequences.


Although it isn’t ideal, there is always a risk that one of your agents, or your agency, could run the risk of a lawsuit. If one of your agents helps a client to close on a house that has defective elements, you could be caught in a lawsuit. Additionally, if incorrect information is provided about a certain property, or information is omitted, a client also might try to push for a lawsuit, which could affect the reputation of your business.

Remember, even though these risks are some of the most common that your business might face, they aren’t the only possible risks that could occur. It is important to be wise about your business and the different opportunities that are available to you, but it is also important to be cautious and protect your agents and clients. Make sure to consult a business professional if you’re seeking further advice to protect your organization.

Subscribe for our latest posts


Try any of our products, free.

Riskwatch products are easy to use, free to try, and can be customized to fit your business needs.

Leave a Reply

Your email address will not be published. Required fields are marked *