4 Ways Errors & Omissions Insurance Can Protect Real Estate Agents

Jun 18, 2023 · 5 minutes to read

Real estate is an exciting and rewarding career with the potential for an impressive paycheck. It also comes with unique risks that could put your professional reputation and earning potential in jeopardy. Fortunately, Errors & Omissions insurance can help protect real estate agents.

What is E&O insurance for real estate agents?

Also known as Professional Liability insurance, an Errors & Omissions (E&O) policy protects your business against claims of negligence, misrepresentations, or mistakes. Professional Liability claims are typically made by clients who allege some form of financial damage as a result of your services, products or employees.

How E&O insurance can protect real estate agents

Now that you better understand what E&O insurance is, here are four ways it can help protect real estate agents.

1. Making a mistake

Clients trust real estate agents to act on their behalf when they buy or sell a property. A mistake in your work, even a small one, might cause problems for a client. If they later allege that your error resulted in a financial loss for them, you could be held liable and ordered to compensate them.

Even the most careful real estate agents can still make a mistake. This could be as simple as a small paperwork error or overlooking important information about a property. E&O insurance for real estate agents can help protect your business if a mistake does happen and you don’t catch it in time.

2. Missing important deadlines

Buying and selling real estate means staying on top of important deadlines. As a real estate agent, you are responsible for submitting offers, filing paperwork, and completing other tasks within strict time limits. Missing even one could cost your client money or sink an entire deal.

If you fail to complete client work on time, you could be held liable for any financial loss your client suffers as a result. E&O insurance provides coverage if you miss a deadline, including compensating clients through legal settlements and judgements.

3. Professional negligence

Real estate agents are held to a professional standard by both their industry and clients. If a client feels you have not performed up to these standards, they could allege professional negligence and take you to court.

Omitting information about a property, not providing a client with all required paperwork, or not during your due diligence are all examples of negligence that real estate agents sometimes face. E&O insurance for real estate agents can help protect you if a client ever makes a similar claim about your work.

4. Not delivering promised services

Part of your job as a real estate agent is to act in your client’s best interest. Failing to deliver services or a result that you promised to a client could lead to a lawsuit.

E&O insurance can help protect you if a client ever feels that you missed the mark while working for them. You could even be pulled into an expensive court case if they misunderstand or misinterpret your advice. Either way, E&O insurance for real estate agents can provide protection for your small business.

Other insurance policies for real estate agents

While E&O insurance can help protect real estate agents from many risks they face on the job, it may not be the only coverage you need. Here are three other policies you might also consider:

General Liability

General Liability insurance protects businesses against the risk of customer injury and property damage.

Open homes are a source of potential risk for real estate agents. General Liability insurance can help protect you if someone is injured during one of your open homes or if the owner’s property is damaged. It can also protect you in other spaces where you work, such as your office, should a visitor suffer an injury on your premises.


A Business Owner’s Policy (BOP) is a combination of policies, combining covers such as General Liability insurance and business personal property coverage, to help protect small businesses from costly interruptions to service.

Events that are beyond your control can sometimes mean putting a pause on doing business. A BOP can help protect real estate agents against costly business interruptions. It can also be customized to include other coverages, such as protecting office equipment, that may also be relevant to your business.

Workers’ Compensation

Workers’ Compensation insurance provides benefits to your employees when they make a claim against your workplace for injury or illness.

Real estate agents who have employees are required to have Workers’ Compensation insurance in every state, except Texas. However, even if you work alone as a sole proprietor, a policy can provide important protections if you suffer a workplace injury.

Find E&O insurance for real estate agents

If you’re ready to buy E&O insurance for real estate agents, BizInsure can help. Compare multiple free quotes from top insurers and buy a policy in minutes. You’ll receive coverage confirmation instantly, so you can get on with your busy day!

Learn more about E&O insurance for real estate agents.

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