Real Estate Professional Liability Insurance

Real estate professional liability insurance protects agents and brokers from lawsuits related to errors, misrepresentation, or negligence in property transactions. It covers legal defense costs, settlements, and judgments, ensuring your business and reputation stay secure.

What Is Real Estate Professional Liability Insurance?

Real estate professional liability insurance—often called errors and omissions (E&O) insurance)—is designed specifically for real estate agents, brokers, and firms. In a business where every detail matters, even small mistakes or misunderstandings can lead to lawsuits. This coverage ensures you’re protected financially if a client claims you made a costly error.

Why Real Estate Agents Need It

Without liability insurance, even a minor lawsuit could cause severe financial damage. Here are the most common risks real estate professionals face:

• Misrepresentation of property details – if a client believes you provided inaccurate information.

• Breach of duty – failing to act in your client’s best interest.

• Errors in contracts – missing or incorrect clauses that cost your client money.

• Negligence claims – not disclosing property defects or zoning restrictions.

This policy covers legal fees, settlements, and judgments, saving you from paying thousands—or even millions—out of pocket.

What Does It Cover?

Real estate professional liability insurance typically includes:

• Legal defense costs (even if you’re not at fault)

• Settlements and judgments

• Claims of negligence, misrepresentation, or omission

• Court fees and administrative expenses

What It Does Not Cover

It’s important to know the limits of your policy. Professional liability insurance for real estate agents usually does not cover:

• Property damage or bodily injury (requires general liability insurance)

• Fraudulent or intentional misconduct

• Employee-related claims (covered under EPLI)

How Much Does Real Estate Professional Liability Insurance Cost?

On average, real estate agents pay between $600 and $1,200 per year for professional liability coverage. Costs vary depending on:

• Size of your firm

• Number of agents covered

• Claims history

• Coverage limits and deductibles

Benefits of Having Coverage

1. Peace of mind – focus on your work without fear of lawsuits.

2. Financial protection – avoid devastating out-of-pocket costs.

3. Client trust – shows professionalism and credibility.

4. Compliance – many brokerages and state boards require it.

FAQs About Real Estate Professional Liability Insurance

1. Is E&O insurance mandatory for real estate agents?
In many states, yes. Even if not required, most brokerages demand it.

2. Does my broker’s insurance cover me?
Sometimes, but not always. Independent agents usually need their own policy.

3. What’s the difference between general liability and professional liability?
General liability covers physical damages (like someone slipping in your office). Professional liability covers financial damages from your professional services.

4. Can I get coverage as an independent real estate agent?
Yes, individual policies are available for agents, not just firms.

5. How quickly can I get a policy?
In most cases, you can apply online and get coverage within 24 hours.

Final Thoughts

As a real estate professional, you deal with large financial transactions, legal contracts, and emotional clients. Even a small mistake can escalate into a lawsuit. Real estate professional liability insurance protects your finances, reputation, and business future.

Start now and see your options instantly. Get your personalized quote today. It’s fast, secure, and tailored to you.