T
he risk landscape for real estate professionals is undergoing significant shifts, prompting Victor, a global managing general underwriter (MGU), to revamp its real estate errors and omissions (E&O) insurance program. The updated offering includes broader definitions of insured parties, expanded coverage for cyber-related incidents, discrimination claims, and bodily injury, as well as additional provisions addressing regulatory exposures.
Effective immediately for new business and from September 1 for renewals, the revised program offers premium rate reductions in several US states, with some policyholders seeing decreases of over 20%. The updated offering is currently approved in 17 states, including Florida, Illinois, and New Jersey, with further approvals expected by early 2026.
The E&O insurance market is stabilizing after years of rate pressure and underwriting scrutiny. While certain high-risk sectors continue to experience cautious underwriting and selective rate increases, capacity remains generally available. Market observers note that pricing dynamics have been influenced by increased litigation, evolving regulatory environments, and emerging exposures such as cybersecurity and reputational harm.
The professional liability market in the US is projected to expand steadily, reaching an estimated $42.8 billion in value by 2024. Real estate professionals face higher claim frequency in areas like transaction disputes, data breaches, and duty-of-care allegations. Victor's latest adjustments aim to reflect these shifts, providing broader coverage options and more accessible pricing.
"We felt the time was right to modernize our solution, providing broader coverage options and more accessible pricing," said Steven Stecker, senior vice president and Real Estate program manager at Victor US. The updated program supports Victor's goal of helping clients navigate complex risk with consistent insurance solutions.
As insurers adapt to changing conditions, industry analysts expect modest growth in E&O lines, with greater differentiation across professions and regions. Market participants anticipate further digitalization in underwriting and distribution, particularly among MGUs and specialty insurers responding to client demand for streamlined service and customized coverage.
