Real Estate Agent Insurance

Real estate agent E&O

Professional liability, also known as errors and omissions, covers any claims filed against you if you happen to make a mistake or oversight when dealing with a listing.

Professional liability covers:

• Property disclosure disputes
• Transaction discrepancies
• Failure to complete inspections
• Failure to complete proper documents

Let’s say you list a home for the wrong price and someone makes an offer. An E&O policy covers your legal costs if they file a claim against you.

Clients may blame you when something goes wrong on their new home. You could face a lawsuit for failing to disclose information about the home. Protect yourself from disgruntled buyers who may sue for failure to disclose a defect, for a breach of contract, or “misleading” the buyer in any way. Professional liability will protect you, even when you haven’t technically done anything wrong.

Common claims:

• Contract error
• Truth in advertising (accuracy of the property or neighborhood description)
• Wrongful discrimination
• Property valuation
• Sewer or well issues
• Performance issues
• Escrow
• Issues with title
• Mold/water issues
• Structure issues
• Investment value
• Transaction disc

How much is E&O for real estate agents? A real estate agent might pay around $37/month for professional liability insurance. That’s $444/year.

General liability for real estate agents

A general liability policy is a baseline insurance policy. This policy covers your basic risks, which include covering customer injuries.

GL covers:

• Property damage
• Third-party bodily injury
• Libel or slander lawsuit claims
• Copyright infringement
• Legal fees

Claim examples

1: Someone files a claim against you because they slipped on a wet floor in your office. General liability covers both medical and legal damages.

2: Your potential home buyer or visitor falls and injures herself in your office or on your property. General liability protects you from third party claims for bodily injury and associated medical costs.

A real estate agent might pay around $30 a month for a general liability policy. That’s about $360 a year.

Realtor workers’ comp

Most states require you to have workers’ compensation if you have one or more employees so be sure to check your state’s requirements. Don’t have any employees? Though you may not be legally required to have this policy, it definitely never hurts.

WC covers:

• Medical bills
• Lost wages
• Legal costs

Here’s how workers’ comp can come in handy. Say one of your employees slips in the office and fractures their wrist.  Workers’ comp pays for their medical bills and a portion of any lost wages.

A real estate agent could pay as little as $63/month for workers’ comp.

Learn more about workers’ comp costs.

Business owner’s policy (BOP) for realtors

A business owner’s policy combines general liability and commercial property insurance into one package. It’s convenient, and cost effective. That’s because by bundling the policy. you get more coverage at a lower price than purchasing each on it’s own. Customizable and cost-effective, nice!

A BOP covers:

• Third-party bodily injury
• Property damage
• Work goods and equipment

Replacement and repair costs of business property

Real estate agents might pay around $50 a month for a business owner’s policy. That’s about $600 a year.

Learn more about business owner’s policy costs.

Other policies for real estate agents

Business property insurance – Protects you against business property losses due to fire, theft, vandalism, and natural disasters. It covers replacement and repair costs. Property insurance might run a real estate agent $25/month.

Umbrella insurance – Kicks in after you’ve exceeded your insurance limits on one of your other policies, offering extra coverage.