Expert Strategies & Tips for Buying Real Estate Agent Insurance

Real estate agent insurance is crucial in keeping you and your agency protected.

Read on to discover what insurance options are available, what you might need, and what costs are involved in this process. 

What is Real Estate Agent Insurance?

Real estate agent insurance protects you from lawsuits that could financially destroy your career or business.

With over 5.5 million homes sold in 2020, real estate agents work with a wide range of clients.

Unfortunately, no matter how careful you are, things can go wrong. That's where insurance comes in to give you peace of mind.

Many different real estate agent insurance policies exist to fit various needs, ranging from individual insurance to real estate agent insurance for companies with multiple employees. 

Real estate agent insurance can protect you from lawsuits involving:

The list above is far from exhaustive, and that's why it's critical to tailor your real estate agent e & o insurance according to your personal business model.

Either way, we can help! -- Click here for a free business insurance quote! 

Should a Real Estate Agent Company Have Insurance?

Just like a business in any sector, every realestate agent company should have insurance.

Aside from general liability insurance that any company needs, a real estate agent business should also consider insurance to cover their equipment, office, and lost income.

Do I Need Realtor Insurance?

Every realestate agent should have commercial business insurance. 

Working inside people's homes comes with a significant liability—you or a potential buyer could accidentally damage the seller's property or personal possessions.

Furthermore, theft could occur during a showing, which could cause the homeowner to file a lawsuit against you.  

Best Real Estate Agent Insurance Companies

What Insurance Does a Realtor Need?

There are four primary branches of insurance for realtors that every agent should have. They include:

Errors & Omissions: The most common problem agents run into is claims of misrepresentation which your realtor E & O insurance policy will cover. 

General Liability: Offers protection from bodily injury and property damage.

Commercial Property: Whether you lease or own your office and equipment, this insurance will cover them.

Business Income: Should your business have property damage that hinders your income, business income insurance ensures that you continue having a source of money during that time.

Luckily, many insurance companies make it easy for insurance for real estate agent businesses to enjoy all four of these benefits by lumping them together under a single business owner's insurance policy.

Other Insurances Real Estate Agents May Consider?

E & O insurance for realtors is an insurance that will protect an realtor should you accidentally misinform a buyer about a home and that mistake costs them money. 

Most states require the purchase of real estate agent e & o insurance, sometimes also referred to as professional liability insurance, before being issued an agents license. 

Data breach insurance aka cyber insurance is another excellent option, as it'll cover you should a hacker gain access to your client's personal details.

How Much Does Real Estate Agent Insurance Cost?

Realtor insurance costs vary significantly; purchasing insurance for realtors will cost much less than if you buy insurance to cover a multi-employee company.

Factors that impact insurance cost include your claims history, your business' size, and whether you choose to add supplements to your insurance policy.