The Quarterly Risk Report highlights issues that pose risk to associations and provides resources to help associations build knowledge, incorporate best practices, and avoid claims.
Active: 26
Potential: 24
Denied: 2
62 claims were filed on the NAR Insurance Program in calendar year 2023, with the top three claims comprising 50% of filed claims. For the first time ever, cyber claims topped the list of claim types filed, driven by the Rapattoni breach in August 2023.
11 Cyber
11 Employment
7 Professional Standards
Check out NAR’s resources in each of these areas to help prevent future claims. Local REALTOR® Associations filed the majority of claims, and the yearly total is in line with recent years. (See graphs below.)
Claims are denied based on the exclusions detailed in the policy clause IV. Among the exclusions are claims for any fraudulent, criminal, malicious or intentional act; bodily injury such as a slip and fall at an association event; worker’s compensation or violations of occupational health and safety laws; and certain federal laws like the Fair Credit Reporting Act and the Telephone Consumer Protection Act.
Q: Can an employer regulate its employees’ political speech or activity in the workplace?
The closer we get to election day, the more likely political activities may break out in our workplaces. In today’s climate, people get easily fired up when discussing the wall or same-sex marriage, terrorism, bathroom designations, and of course, candidates. So what’s an employer to do if this activity negatively impacts its workplace?
The first consideration is the First Amendment. It does secure essential rights—freedom of speech, the right to assemble—but it does not apply to a private employer’s ability to regulate employee activity. However, your jurisdiction may have broad statutory protections. Certain states, including California, Colorado, Illinois, Louisiana, New York, North Dakota, South Carolina, Wisconsin and Utah, prohibit employers from taking action against employees based on their lawful off-duty conduct.
So, the next time an employee shows up wearing a “Dump Trump” or “Banish Biden” pin and you feel the need to do something:
This employment practices tip, and dozens more, are available to you on the EPL AssistTM website. Be sure to take advantage of this valuable benefit, which provides policy templates, sample documents, risk management resources, and advice and counsel on common employment law issues facing associations.
Q: One of my directors read the Chubb policy, and says we’re not specifically named in it. Are we still covered?
A: Yes. The NATIONAL ASSOCIATION OF REALTORS® name appears on the policy because it is the “Named Insured.” The REALTOR® Associations, MLSs, and NAR Institutes, Societies and Councils are eligible for coverage as "Associations" defined in Section II.D. of the policy.
Have coverage questions? Check out these Professional Liability Policy FAQs .
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