Best Real Estate Agent Insurance of 2022

Bryan Keith

Real estate work can involve large transactions and mistakes can be costly. Real estate agent insurance protects agents and brokers from legal liability and financial losses due to claims made against you. We’ve evaluated the best real estate agent insurance providers based on coverage, financial stability, customer satisfaction, and overall quality.

Affordable plans and coverage provided within minutes

$2,000,000

Coverage Up To

$0 - $2,000

Deductibles

Overview

Next Insurance leverages AI technology to streamline the process to purchase insurance, track claims, and manage policies at no additional cost.

What we like

  • Affordable insurance plans
  • Customized coverage to fit your business
  • Get covered within minutes
  • Near instant access to proof of insurance
  • Quick and easy to process claims

What we don't

  • Not available in New York

Covers a wide range of industries

$2,000,000

Coverage Up To

$1,000+

Deductibles

Overview

Coverwallet began its journey in New York City in 2015 operating under the Aon Insurance banner. At Coverwallet, you can access everything you need to keep your company well-protected at an unbeatable price.

What we like

  • A skilled advisor to assist you
  • Free quotes from multiple insurance carriers
  • Covers low risk to even some high risk industries
  • Online account management

What we don't

  • No brick-and-mortar offices
  • Deductible costs

Customized solution to fit your business needs

$2,000,000

Coverage Up To

$0 - $10,000

Deductibles

Overview

With a 100-year history of insuring businesses, Hiscox is well-known across America and globally. With more than 500,000 small business customers, Hiscox is fully aware and trained in the unique risks a business can face.

What we like

  • Established insurance company
  • Dual auto insurance
  • Customizable insurance for over 180 industries
  • Deductibles starting at $0
  • Affordable rates

What we don't

  • Limited US offices
  • Coverage limited to $2 million online

Flexible coverage by the year, month, day, or by the job

$2,000,000

Coverage Up To

$0 - $10,000

Deductibles

Overview

Thimble provides business insurance that can be tailored to your business by the year, month, day, or even the job. At Thimble, the process to getting the right business insurance is simple, scalable, and flexible.

What we like

  • Scheduled coverage options
  • Coverage by the job available
  • Buy a policy online within minutes
  • No hidden fees
  • Affordable plans
  • Drone insurance

What we don't

  • Not available in New York

Tailored Amazon seller insurance

$1,000,000+

Coverage Up To

$100+

Deductibles

Overview

Spott will ensure that your policy coverage is tailored to your business while complying with Amazon’s Terms and Conditions. They also track changes to Amazon’s Terms and Conditions to identify potential issues with listings before a suspension.

What we like

  • Tailored eCommerce insurance
  • Liability insurance for Amazon sellers
  • Store Suspension coverage
  • Compares leading insurance carriers
  • Flexible coverage options and payment plans
  • Knowledgeable about Amazon’s rules and policies

What we don't

  • Limited physical offices

What is real estate agent insurance?  

You’ve put in the hours to build your real estate business, but there’s always the risk of liability that could have severe legal, reputational and financial implications for your business. A client may claim that you made an error listing a property or you caused damage to their home.

Real estate agent insurance can protect your business against financial losses that can emerge due to legal action, negligence, property damage, and loss of business income.

Do real estate agents need insurance?

Real estate agents and brokers should consider taking out real estate insurance to protect their business and reputation against liability. Plus, professionals including property managers, mortgage brokers, commercial landlords, and real estate appraisers could also benefit from insurance coverage.

What insurance do real estate agents need?

When taking out real estate insurance, it’s important to consider different types of coverage and policies to adequately cover your business for legal liability and potential financial losses. 

The most common types of coverage for real estate agents are:

Professional liability insurance

Professional liability insurance, also referred to as errors and omission insurance, provides coverage against professional mistakes that cause a client to incur financial losses. For example, a buyer could accuse you of misrepresenting a property or a seller could claim that you misled them on pricing the sale of a home. A business disagreement, breach of contract, or negligence could be costly, requiring you to pay for legal expenses to defend your actions and business. 

Professional liability insurance coverage can protect you against business errors, professional mistakes, accusations of negligence, legal defense costs, legal judgments, breach of contract, and missed deadlines.

Exclusions for professional liability insurance can include workplace accidents, intentional wrongdoing, and illegal activity.  

General liability insurance

Unexpected events can happen and general liability insurance can protect your business against basic risk factors such as causing damage to a property that doesn’t belong to you and lawsuits that your business could be liable for. For example, a client could walk into your business premises, slip and fall or an open house showing may result in a potential buyer knocking over an expensive piece of artwork. General liability will cover you in those cases.

Coverage for general liability insurance can include third-party property damage, copyright infringement, medical costs, reputational harm, and legal defense costs.

Exclusions for general liability insurance can include employee injuries and illnesses, commercial auto accidents, and professional errors and mistakes.

Commercial auto insurance

Many states require you to have commercial auto insurance in place to cover your business vehicle in the event of an accident or collision. As a real estate agent, you’re going to be visiting different properties throughout the week or you may also be transporting clients to a showing. Commercial auto insurance can provide extensive coverage to help pay for damages during an accident.

Coverage can include medical expenses, collision repairs, uninsured motorists, legal fees, towing and labor, and property damage.   

Exclusions can include drivers under the age of 18 years old, passenger transportation businesses, and non-business-related driving.

Workers’ compensation insurance

In many states, it is a requirement to have workers’ compensation insurance in place to protect employees from lost wages and medical care in case of workplace accidents and injuries. Employees in an office could suffer from neck strain or carpal tunnel syndrome. Agents that travel offsite could get into an accident on their way to an open house. 

Workers’ compensation insurance coverage can protect your real estate business and employees for medical expenses, lost wages, employer liability, legal costs, settlement costs, and survivor benefits.   

Exclusions to policies can include professional negligence and mistakes, executive officers, and owners of the business.

Commercial property insurance

If your real estate business owns or rents physical space, you should consider commercial property insurance to protect equipment and damages done during a covered event such as a fire or windstorm. Many landlords require a policy to be in place before you lease a building. Insurers often offer commercial property insurance combined with general liability under a single business owner’s policy. 

Coverage for commercial property insurance can include damaged furniture and equipment, inventory, theft, vandalism, and covered events. 

Exclusions can include flood and earthquake damage.

What are the limits of real estate agent insurance?

When you take out a real estate agent insurance policy, the limits will determine the maximum amount you can claim in a given policy period. Extensive coverage for commercial auto, general liability, professional liability, and workers’ compensation can go up to $1 million. 

When choosing your policy limits, it’s important to consider the size and location of your business. A larger real estate business would require more extensive coverage. 

How much does real estate agent insurance cost?

Several factors go into the calculation of real estate insurance, and policy premiums can vary from one insurer to the next. On average real estate agents can pay $27 per month for general liability insurance based on size, experience, and location.

Here are some factors that insurers will consider when providing a quote:

  • Business location: If you’re a real estate agent in a luxury market, any property damage could prove to be costly. This can increase the cost of your insurance premium.
  • Sales and experience: Real estate agents with more experience are less likely to make professional mistakes that could be costly. As experience grows, insurance premiums are likely to fall. 
  • Deductibles: The more you choose to pay out-of-pocket, the lower your insurance premium. Deductibles are generally adjustable to suit your needs. 
  • Claims history: In certain cases, you may need to pay increased premiums during renewals due to successful claims made on your policy.  
  • Payroll: As your business grows, payroll is also likely to expand with more employees. This increases the risk that an employee could have an accident or require time off due to injury or illness affecting your workers’ compensation insurance. 
  • Policy limits: The more extensive your insurance policy, the higher the premium. Larger businesses could benefit from higher policy limits due to increases in risk factors.
  • Value of business equipment: If your business uses high-value equipment or rents an expensive commercial building, this can impact your commercial property insurance premium. 

How to choose the best real estate agent insurance

When looking for the best real estate agent insurance policy, here are some key factors to consider before you make a purchase:

  • Services offered: The type of insurance you need will depend on the services you offer in real estate. For example, a real estate appraiser may require extensive professional liability insurance as an inaccurate estimation of property value could lead to financial repercussions for the buyer and seller.
  • Read the fine print: All insurance policies have exclusions. Read the terms and conditions before purchasing an insurance policy, as this can help avoid surprises when filing an insurance claim, and finding out that your incident is not covered.   
  • Umbrella policies: If you believe that your insurance claims risk exceeding policy limits, umbrella insurance can help fill the difference in what the business needs to pay and what the insurer will cover.