E&O Insurance for Real Estate Agents & Brokers

If you provide professional services to clients, professional liability coverage insures you against claims of negligence or delivering inadequate work products (also known as “errors and omissions” or E&O coverage).

If a claim is filed against you, we’ll assign you a lawyer from our network of defense attorneys who specialize in professional liability, and we’ll pay their legal fees. We’ll also pay for related defense costs (e.g., court fees, settlements).*

AMOUNT COVERED:
With flexible limits up to $1 million per claim/$2 million aggregate

If you’re investigated by a professional regulatory organization, we’ll appoint defense counsel for you and reimburse you for the attorney fees resulting from the investigation.*

AMOUNT COVERED:
$25,000 per policy period

If we ask you to attend any depositions, trials, hearings, or arbitration proceedings in support of your defense, we’ll reimburse you for actual lost wages and any reasonable and necessary expenses.*

AMOUNT COVERED:
$1,000 per day

If someone files a claim against you for a date when you didn’t have E&O coverage, we’ll cover you retroactively.* This applies to prior services if you have been continuously insured.

The policy applies to damage to property, loss of items, or injuries that occur while you’re showing a home.*

AMOUNT COVERED:
Up to $100,000

The policy applies to claims alleging that you discriminated against someone in the sale, rental, or financing of a property based on race, color, religion, sex, or national origin.*

AMOUNT COVERED:
Up to full limits

The policy applies to claims arising out of allegations that you failed to disclose pollutants to a buyer.*

AMOUNT COVERED:
Up to full limits

If a client sues you for an unintentional error, negligent act, breach of contract, misrepresentation, failure to disclose, or breach of duty in your work, errors and omissions insurance can cover the cost of defending yourself against the claim. It can also cover the settlement amount or other damages you may have to pay. Depending on your policy, expenses covered by a typical E&O policy might include:

• Attorneys’ fees
• Arbitration costs
• Expert testimony fees
• Court costs and costs of attending trials
• Settlement and judgment costs
• License protection (if a licensing authority investigates you)
• Wage loss for time spent on your defense

In addition, Berxi’s E&O insurance policies for real estate professionals offer added endorsements specifically designed for real estate brokerages, including:

• Open House or Real Estate Showing Coverage, which covers claims of damage to property, loss of items, or injuries that occur while you’re showing a home.
• Fair Housing Act Coverage, which covers claims alleging that you discriminated against someone in the sale, rental, or financing of a property based on race, color, religion, sex, or national origin.
• Failure to Disclose Pollutants coverage, which covers claims arising out of allegations that you failed to disclose pollutants to a buyer.
• Reputation Protection Coverage, which covers crisis management and public relations expenses to protect your professional reputation.

The price of your policy depends on a number of factors, including your location, your revenue and gross commission income (GCI), how long you’ve been working in the industry, and your claims history. At Berxi, E&O policies for real estate brokerages can start at around $500 per year, and the average policy costs about $3,000 per year.

The best way to find out how much your brokerage’s E&O insurance policy will cost is to get a quote. It only takes a few minutes, and your policy can go into effect as soon as you’d like.

In many states, errors and omissions insurance is required for real estate agents and brokers. But whether or not E&O insurance is legally required in your state, it can provide essential protection from potentially costly errors and omissions lawsuits.

Here’s an example: If a real estate brokerage franchisee accidentally publishes the incorrect square footage for a home they’ve listed, an unhappy buyer might sue over that error. If the brokerage had E&O insurance, their policy might typically cover the cost of legal proceedings and outcomes. In cases like these, E&O real estate insurance can help pay for your legal defense, as well as settlement payments and other damages. If you ever face a lawsuit like this, E&O insurance can be a financial lifesaver.

In addition to errors and omissions insurance, real estate brokerages may want to consider other types of business insurance to protect themselves from different risks, including general liability insurance, cyber liability insurance, commercial property insurance, and workers’ compensation insurance.

Errors and omissions (E&O) real estate insurance is a type of professional liability insurance specifically designed for those who work in real estate, such as brokers and agents, as well as those in real estate-related fields, such as inspectors, appraisers, and mortgage brokers. Your work revolves around large financial decisions – whether it’s a family spending their life savings on their first home or a company investing in a new commercial property, you deal with enormous financial transactions on a daily basis. Transactions of this size come with a certain amount of risk – and often, that risk is beyond your control.

That’s where errors and omissions insurance comes in. If a client claims you made a costly mistake or were negligent, your E&O policy can provide you with legal counsel to defend against claims or lawsuits, as well as the funds to pay for damages you may owe. Depending on your insurance company and the policy you choose, real estate E&O insurance can also provide additional coverage to protect your reputation, reimburse you for lost wages, and defend you against challenges to your professional license.

The cost of defending or settling even a trivial E&O claim can be substantial. It can also create a distraction from running your business. Real estate E&O insurance helps minimize the disruptions and out-of-pocket costs that come with such claims, while supporting you through every step of the process. Having the right real estate insurance coverage can give you the peace of mind and confidence you need to focus on growing your business.

Many states require real estate brokers and agents to carry errors and omissions insurance, whereas other states don’t. Regardless of whether insurance is legally required in your state, it’s important to protect yourself and your brokerage from potential lawsuits with comprehensive errors and omissions coverage.