Avoid the Pitfalls: Risk Essentials for Real Estate Agents
More than half of Australian real estate professionals say client expectations have intensified in the past two years.
Ethical AI implementation begins with transparency. Be open with your employees about how your SME uses AI, what data is being collected, and the purposes behind it. Clear communication fosters trust and accountability. It should go two ways: According to Smart Company, two thirds of office workers already use AI tools, without their boss’ knowledge, called ‘AI by stealth’.
Leverage employees’ interest in AI by collaborating on how to develop and deploy the technology to enhance, rather than replace, their work and skills. This approach promotes agency and adaptability in an AI-driven workplace.
Strengthen your governance to protect your staff and your business:
- Establish a clear AI policy
- Set up oversight mechanisms
- Run regular audits and risk assessments
- Develop a program for compliance, monitoring, and evaluation checks
- Define your ethical standards and use them as a benchmark, ideally led by an AI ethics officer or committee
- Train employees and leadership
- Incorporate staff feedback, and
- Partner with trusted reputable vendors.
Check out the Governance Institute of Australia’s White Paper on AI Governance, and the Australian Government’s AI Ethics Principles. And the Federal Government is funding AI Adopt Centres to offer SMEs free specialist training – find out about the first four to open.
Insurance Considerations
Adopting AI in your business brings new risks, making appropriate insurance coverage essential. Management liability insurance can protect against claims of discrimination, wrongful termination, or privacy violations related to AI use.
Meanwhile, cyber liability insurance is another important policy to consider. It covers data breaches or misuse of sensitive information that AI systems collect. Such coverage provides peace of mind by addressing the financial and reputational impacts of a cyber incident.
As well, professional indemnity insurance helps address errors or oversights in AI deployment that could impact your workers’ rights or safety. Should your AI system make a grave mistake, this coverage can shield your business from substantial liability.
Lastly, we, as your broker or adviser, can review your insurance policies to ensure they address the emerging risks associated with AI adoption. This collaboration ensures your protection as you embrace innovation.
Natural Disasters and Climate Change
The changing climate is affecting the frequency and severity of natural disasters, and your business must consider the impact of these risks. Whether you’re in an area prone to floods, bushfires, or extreme weather events, consider revisiting your property and business continuity insurance.
New weather-related risks might not have been a concern in the past, but now they could be a significant factor for your operations. Since the 2019–2020 Black Summer bushfires, 11 insurance catastrophes have been declared in Australia, with insurers having to process almost 788,000 claims.
Talk to us about modifying your coverage to better reflect the changing climate conditions in your area.
Article Supplied by OneAffiniti
Book An Appointment
Submit a Claim
Contact Us