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PropTech

Tailor-made insurance solutions for innovative technologies in the real estate sector

Understanding liability risks and insuring them correctly

What is PropTech?

PropTech(Property Technology) refers to companies that develop and apply innovative technologies and digital solutions in the real estate sector. From smart building technologies and digital property management to AI-supported analysis tools - PropTech is revolutionizing the traditional real estate industry. The digitalized processes in the real estate sector encompass the areas of management, use, sales, marketing and letting. PropTech solutions and products can be geared towards both B2B and B2C. Different risks are associated with the specific activity and the target customer group.

What are the risks of PropTechs?

-1-
Financial losses

Claims for damages are made against them by third parties. PropTech companies face an increased liability risk if their technologies or consulting services lead to financial losses for customers. This can happen, for example, due to incorrect property valuations, data loss or software errors. Our specialized financial loss liability insurance policies offer protection in the event of:

  • Consulting errors in digital real estate valuations.
  • Faulty forecasts due to AI-supported analysis tools.
  • Software errors in real estate management platforms.
  • Breach of confidentiality obligations.
  • Breach of secondary contractual obligations.

-2-
IoT risks in the real estate sector

Smart buildings and IoT technologies offer enormous benefits, but also bring new security risks:

  • Cyber attacks on networked building technology.
  • Data breaches through smart home systems.
  • Business interruptions due to system failures.
  • Physical damage caused by faulty IoT devices (e.g. smart locks, automated heating systems).

Our specialized cyber insurance and IoT liability solutions protect your company against these technology-specific risks and their liability consequences for your company.

-3-
Risks of rental losses

PropTech companies that offer rental management software or digital rental platforms run the risk of being held liable for rental losses:

  • Failures of booking and payment systems.
  • Incorrect brokerage of rental properties.
  • System failures on short-term rental platforms.

 

Our special insurance solutions cover these risks and protect your company against financial losses caused by accusations of loss of rent caused by you. The complex contractual and legal relationships with various parties involved often make it difficult to clearly allocate fault and damages. We are happy to support you with comprehensible and transparent insurance solutions.

-4-
Legal costs and regulatory risks

The PropTech sector operates in a complex legal environment of real estate, technology and data protection law:

  • Violations of the GDPR in the processing of tenant data.
  • Real estate law disputes in digital transactions.
  • License disputes for software solutions.
  • Regulatory compliance issues in international markets

 

Our legal protection insurance policies offer comprehensive protection for the legal challenges of the digital real estate business.

Our risk solutions for PropTech companies:

As an international insurance broker with expertise in tech risks, we offer customized insurance solutions that are specifically tailored to the needs of PropTech companies:

Core insurance

Supplementary safeguards

  • Legal protection insurance with a tech focus (e.g. through administrative legal protection in GDPR proceedings)
  • Business interruption insurance for cloud-based services
  • Intellectual property insurance (legal protection and liability)
  • Product liability for smart building technologies
  • International program insurance for opening up new markets

Our risk management approach

We understand that PropTech companies need more than just insurance cover. Our holistic approach to risk management includes:

  • Risk assessment: detailed analysis of your specific technologies and business models for their insurability
  • International expertise: Tailor-made solutions for local and global PropTech activities
  • Preventive measures: Support in the initiation of new contracts through coordination with your insurance cover
  • Claims management: As a competent insurance broker, we are on your side and understand both your technical components and the insurers' processes

Contact us, your PropTech specialists

Our digital real estate technology experts will be happy to advise you on your specific risks and insurance needs. Arrange a free consultation and find out how we can best protect your PropTech company.

Do you have questions about your specific PropTech risks? Contact us today for an individual risk analysis and tailor-made insurance solutions for your innovative real estate technology company.

FAQs

Insurance cover
for propTechs

For PropTech start-ups, we recommend a combination of the following as basic protection

 

Depending on the business model, further specific safeguards may be useful, e.g. for IoT devices or AI applications in the real estate sector.

PropTech companies have a much stronger focus on digital risks such as data breaches, software errors and technology-related liability scenarios than traditional companies in the construction or real estate industry. Traditional real estate companies, on the other hand, focus primarily on property and liability risks in connection with physical real estate. At the same time, traditional software companies often have other liability risks, meaning that PropTechs cannot get by with standard IT liability insurance. Our specialization enables us to optimally insure precisely these technology-specific risks.

Yes, as an international insurance broker with expertise in multiple insurance markets, we can develop global insurance programs that both meet local compliance requirements and provide consistent protection across national borders. This is particularly relevant for PropTech companies with international expansion plans.

Our approach

Next steps

1.

Analysis of your current risks.

2.

Let our experts advise you.

3.

Implement a customized insurance solution.

 

Feel free to contact our experts for a non-binding consultation!