NAR Insurance Program Quarterly Trend Report

Q1, 2021

Summary: Association claims activity increased 46 percent compared to Q1 2020. Cyber incidents and social engineering/invoice fraud noticeably increased over prior years, while member challenges to association governance decisions remained a strong category with a third of all active and potential claims.


Total Number of Claims Filed

(14 active demands/lawsuits and 5 potential claims)

  • 6 Association Governance 
  • 3 Antitrust
  • 3 Crime Loss
  • 2 Cyber
  • 2 Employment
  • 1 Contract
  • 1 Copyright
  • 1 Fair Housing
  • 1 Professional Standards

Download the Q1 Trend Report

Lessons from a Closed Case

A long-tenured association executive with no prior performance issues brought a wrongful termination suit after a new president and board of directors questioned the AE’s bookkeeping and issued a letter of reprimand for failure to follow bylaws, document retention and financial policies, and insubordination. None of the issues were previously documented or raised in prior evaluations, and without a plan or time to address the issues, the AE was terminated. The claim ultimately settled, costing the association tens of thousands of dollars.


  • Ensure the association has policies and procedures for conducting an annual performance review of the chief paid executive.
  • Educate board members about their role in overseeing the association’s operation, and their duties of care, loyalty, obedience and accounting.
  • Promote open dialogue and reach agreement about the roles and responsibilities of the president and association executive and the overall management model of the association.
  • Follow all procedures in the association’s employment manual for discipline and termination; having employment policies in line with NAR’s recommended Employer/Employee Guidelines is a pre-requisite for coverage of Employment Practices Liability claims.
  • Engage employment counsel to review and assist in key staff terminations. 

Be sure to check out the helpful governance and employment resources in the features resources section.


Featured Resources

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Cyber Resources

Governance & Employment Resources

Insurance Tip

Excess coverage to raise the claim limit for certain coverages in the NAR policy is available to purchase January 1 to April 1 of each policy year. Consider making excess coverage part of your budget planning process for next year.