How Much Is Errors And Omissions Insurance For Real Estate?

Buying or selling a property can be a complex and risky process, which is why real estate professionals are expected to have an extensive knowledge of the industry. However, even with years of experience and careful attention to detail, mistakes happen. That’s where Errors and Omissions (E&O) insurance comes in handy.

E&O insurance protects real estate agents and brokers from legal claims that arise due to errors or omissions made during the course of their work. But how much does it cost? In this blog post, we’ll break down everything you need to know about E&O insurance for real estate, including its cost, who needs it, how to get it, and more!

What is E&O insurance?

Errors and Omissions (E&O) insurance is a type of liability insurance that protects professionals from legal claims resulting from mistakes or negligence made while performing their duties. In the context of real estate, E&O insurance offers coverage for errors or omissions made by agents and brokers in the course of their work. This may include things like failing to disclose information about a property, providing incorrect advice, or making an error during paperwork.

E&O insurance can provide peace of mind to real estate professionals who are concerned about potential legal disputes arising from unintentional mistakes. Without this coverage, agents and brokers could be held personally responsible for any damages awarded in a lawsuit against them.

While E&O insurance can’t prevent mistakes from happening, it does offer financial protection should a mistake occur. It’s important to note that E&O insurance doesn’t cover intentional fraud or illegal activities – these would typically be excluded under the policy terms.

E&O insurance provides valuable protection for real estate professionals who want added security when dealing with complex transactions involving large sums of money.

Who needs E&O insurance?

Errors and omissions (E&O) insurance is a type of professional liability insurance that provides coverage to businesses and individuals who give advice or provide services to clients. One of the main industries that require E&O insurance is real estate.

Real estate agents, brokers, property managers, and appraisers are all examples of professionals in the real estate industry who should consider obtaining E&O insurance. These professionals are responsible for providing their clients with accurate information regarding properties and transactions. However, mistakes can happen even when these professionals take great care in performing their duties.

Without E&O insurance, these professionals could face serious financial consequences if they were sued by a client over an error or omission. Even if the claim is unfounded or frivolous, legal fees alone can be costly enough to bankrupt some small businesses.

In short, anyone working in the real estate industry who wants protection against potential claims resulting from errors or omissions in their work should seriously consider obtaining E&O insurance.

How much does E&O insurance cost?

The cost of errors and omissions insurance for real estate agents can vary based on a number of factors. These include the size of your business, the state in which you operate, your level of experience and qualifications as an agent, and how much coverage you need.

On average, E&O insurance for real estate professionals can range from $500 to $2,000 per year. However, this estimate is not set in stone as it ultimately depends on various factors as previously mentioned.

Some insurers may offer discounts if you bundle E&O insurance with other policies such as general liability or property insurance. Additionally, some states require that all licensed real estate agents carry a minimum amount of E&O coverage.

Before purchasing E&O insurance for your real estate business make sure to compare quotes from different providers to ensure that you get adequate coverage at a reasonable price. Remember that it’s always better to have protection against potential lawsuits rather than being caught off guard without it.

How to get E&O insurance

Getting errors and omissions insurance for real estate is an essential step in protecting your business from potential legal claims. Here are some steps to follow when getting E&O insurance:

1. Research different providers – Start by researching the top-rated E&O insurance providers in your area or online. Look at their coverage options, customer reviews, and overall reputation.

2. Assess your needs – Review your past work history and consider what types of risks you may face in the future. This will help determine how much coverage you need and any additional endorsements required.

3. Request quotes – Reach out to a few different providers for quotes on policies that meet your needs.

4. Compare policies – Carefully review each policy to compare rates, deductibles, coverages, exclusions, limitations, etc., before making a decision.

5. Purchase the policy – Once you have found the right policy with sufficient coverage options within your budget range; it’s time to purchase it!

By following these simple steps and doing proper research through multiple sources; one can get the best deal possible on errors & omissions (E&O) insurance for real estate businesses!

What is the difference between E&O insurance and general liability insurance?

E&O insurance and general liability insurance are two types of insurance policies that businesses should consider. Both insurances provide protection to the business, but they differ in what areas they cover.

General liability insurance covers claims related to property damage or bodily injury caused by a business’s operations, products or services. It also provides coverage for legal expenses incurred due to lawsuits arising from these issues.

On the other hand, E&O insurance focuses on covering professional mistakes made by businesses during their work. This type of policy protects against damages occurring due to errors or omissions in providing services, including failing to deliver promised results or incorrect advice.

For example, if a real estate agent fails to disclose important information about a house that leads the buyer into financial loss after purchasing it; E&O would cover this claim while general liability wouldn’t.

While both policies offer protection for your business against different risks – understanding which one you need is essential in ensuring you have adequate coverage for your operations.


Errors and Omissions insurance is an essential part of any real estate professional’s risk management strategy. With the potential for costly lawsuits to arise from even the smallest mistake or omission in a transaction, having E&O coverage can provide peace of mind and financial protection.

The cost of E&O insurance varies depending on factors such as location, experience level, and policy limits. However, the investment in this type of coverage can pay off significantly if a claim does occur.

When seeking out E&O insurance, it’s important to do your research and compare policies from different providers. Look for a provider that specializes in insuring real estate professionals and has experience handling claims specific to your industry.

Remember that E&O insurance should not be seen as an optional expense but rather a necessary safeguard against unforeseen risks. By taking steps to protect yourself with proper coverage, you can help ensure your success as a real estate professional for years to come.