The facts

During a busy open house for a sought-after property in a prime UT neighborhood, listing agent Emily was showcasing the home to potential buyers. Among them was Mr. Thompson, who had previously submitted a low offer that the sellers rejected. Frustrated, he confronted Emily, loudly accusing her of unprofessionalism.

In an effort to de-escalate the situation, Emily calmly addressed Mr. Thompson's concerns, explaining the rationale behind the sellers' decision. She emphasized the competitive nature of the market and the sellers' desire to achieve the best possible outcome. However, her attempts to reason with him only seemed to intensify his frustration.  In a moment of anger, he pushed Emily, causing her to lose her balance and collide with another guest, Mrs. Smith, who was walking past a vintage table near the entrance. The impact sent Emily crashing onto Mrs. Smith, who was caught off guard, resulting in the vintage table tipping over and shattering a valuable vase, leading to significant property damage.

The result

Both Emily and Mrs. Smith sought medical attention following the incident. Emily suffered a broken hand and tendon damage, which required surgery and physical therapy, while Mrs. Smith sustained severe lacerations from the broken vase. After the incident, Emily filed a police report documenting her injuries and the property damage, which included an estimated $6,500 in damage to the vintage table and vase. Emily's Errors and Omissions (E&O) policy included Agent Protection coverage, a first-party coverage specifically for her injuries, which exhausted her $50,000 Agent Protection limit. Defense costs, along with the injuries sustained by Mrs. Smith and the property damage, totaled $78,500 and were covered by other areas of Emily's E&O policy. In total, the claim cost amounted to $135,000.

Risk factors 

Risk factor #1

Open houses attract many visitors, which increases the risk of accidents. Agents should advise sellers to remove or secure valuable items, personal belongings, and fragile decor before the event. This proactive measure helps reduce the risk of damage or theft during the open house.

Risk factor #2

Hosting an open house alone can expose agents to safety risks. It is advisable to arrange for an additional agent or assistant to be present during the event. This not only enhances safety but also improves crowd management and provides better assistance to guests.

Risk factor #3

Agents should regularly review their insurance policies to ensure they adequately cover potential claims. It is essential to assess these policies for any gaps and discuss them with an insurance agent to ensure comprehensive protection.