Top insurance policies for real estate businesses
Errors and omissions insurance
E&O insurance helps pay for lawsuits related to professional negligence, such as failing to inform a buyer about severe water damage or mold. It's sometimes required by law for real estate professionals.
- Failure to disclose facts about a property
- Document errors
- Transaction delays
General liability insurance
A general liability policy covers costly lawsuits from slip-and-fall injuries and other client accidents. It's often required by commercial leases and contracts.
- Accidental client injuries
- Accidental damage to client property
- Libel, defamation, and copyright lawsuits
Commercial auto insurance
A commercial auto policy helps pay for expenses after an accident involving a vehicle owned by your real estate company. Each state has its own requirements for car insurance.
- Car accidents
- Vandalism and theft
- Weather damage
Business owner's policy
A BOP bundles commercial property insurance and general liability coverage under one plan. It's often the most cost-effective type of commercial insurance for real estate companies.
- Customer injuries
- Damaged business property
- Business interruption incidents
Workers’ comp insurance
Most states require workers' compensation insurance for real estate businesses that have employees. It also helps sole proprietors pay work-related medical costs that health insurance could deny.
- Employee medical expenses
- Disability benefits
- Workplace injury lawsuits
Cyber insurance
This type of insurance covers costs from a data breach or cyberattack that affected your real estate business. If your business stores client information, then you should have this coverage.
- Data breach investigations
- Notification of affected clients
- Fraud monitoring after a breach
Real estate insurance costs
From our customer data, here's a quick look at average real estate business insurance costs:
E&O insurance: $68 per month
General liability: $40 per month
Commercial auto: $160 per month
Factors that underwriters consider when setting your premiums include:
- Your profession
- Whether you work in residential or commercial real estate
- Number of employees
- Value of your business property
- Types of insurance purchased
- Deductibles and policy limits
- Any endorsements or exclusions
- Claims history
How do I get real estate insurance?
TechInsurance helps you get insured quickly so you can comply with state laws, qualify for leases and loans, and protect your business against costly lawsuits and accidents. We work only with top-rated insurance companies to secure the best possible coverage for your real estate business.
You can get the right insurance in three simple steps:
- Fill out our easy online application with your business details.
- Compare free quotes from our trusted partners.
- Pay for a policy and download your certificate of insurance (COI).
Our licensed insurance agents can help you find insurance solutions that match your unique risks, whether you're a real estate agent, broker, commercial landlord, mortgage broker, or property manager. Gain peace of mind with advice from expert agents and policies from the leading carriers in the nation.
Hear from business owners like you who purchased insurance coverage.
Common questions about business insurance for real estate professionals
Find answers to frequently asked questions about real estate insurance and business requirements.
Are real estate businesses required to have errors and omissions insurance?
Real estate businesses are often required to carry E&O insurance, also called professional liability insurance. You may need E&O insurance to get a real estate license in your state, or to work for a specific agency or brokerage.
More than a dozen states require E&O insurance for real estate professionals. In Colorado, you need E&O coverage for every active real estate license, with different minimum limits for individual brokers versus firms. In Tennessee, E&O coverage is required for each individual licensee but not for firms.
On the other hand, California, Illinois, and New York do not require E&O insurance. Even when this coverage isn't required, it still makes sense to buy it for financial protection against costly negligence claims, including frivolous lawsuits.
Do real estate property owners need to obtain additional insurance coverage?
Property owners often need specialized coverage for their unique risks. Commercial landlords and other real estate property owners often invest in the following:
- Lessor's risk only (LRO) insurance protects the building owner or homeowner from legal costs if a renter sues over an injury or property damage.
- Building insurance can be added to LRO insurance to cover fires, storms, and other incidents that damage or destroy your building.
Standard insurance includes some coverage for natural disasters, such as fire, wind, and hail. You may want to add an endorsement for flood insurance, earthquake insurance, or other risks.
What other types of insurance should real estate professionals consider?
Real estate agencies, independent agents, and other real estate businesses may want to consider additional insurance products to help mitigate risks. These policies help with some of the more expensive claims you might see:
- Business interruption insurance, also called business income insurance, helps your business recover financially after a windstorm or other covered property claim forces you to close temporarily. It can pay for employee wages, rent or mortgage payments, and other operating expenses until you can reopen.
- Commercial umbrella insurance is available for purchase after you've bought a liability policy, such as general liability, commercial auto, or employer's liability insurance. If the underlying policy reaches the limit on a claim, umbrella insurance activates to provide extra protection.
Business interruption insurance is often included in commercial property insurance or a business owner's policy, while you can buy umbrella insurance in $1 million increments to boost your other coverages. If you need help finding the right coverage options for your business, contact a TechInsurance agent.
What is a hold harmless agreement and why is it important for real estate businesses?
A hold harmless agreement provides a way to transfer your business's liability to your client, which could help you avoid a lawsuit. By signing a hold harmless contract, your client agrees they won't hold your business responsible for any damages or losses.
This agreement is often part of a risk management strategy in the following situations:
- Sales where the buyer has not seen the property in person
- Foreclosed property sales
- Renovations and inspections by third-party providers
- Tours of vacant homes or homes under construction
It's especially recommended for situations where a client makes their own decisions against an agent's advice, such as waiving a property inspection. In this case, the client assumes responsibility for any potential accidents, and agrees they won't seek legal action against your business.
Explore on TechInsurance
Insurance requirements for small businesses vary from state to state. Find out which types of business insurance are required by law in your state, and make sure that you, your business, and your employees are protected.
Regulations for workers’ compensation insurance vary by state. Learn more about workers’ compensation state laws and how they apply to your small business.
Liability claims can be a threat to your business. If you’re accused of injuring someone, damaging property, or causing other harm it could easily turn into a costly lawsuit. That’s why it's important to have the right insurance protection in place to cover a range of potential liability risks.
Liability insurance can protect you from risks and help your business meet contract requirements. Here’s how to decide which coverage limits you need for your liability policies.
Buying or renting an office is a big step for a small company – so you’ll want to make sure to protect your investment with office insurance. While commercial property insurance pays for damage to your building and belongings, you’ll likely need other policies as well.
Before purchasing errors and omissions insurance (E&O), consider factors such as premium pricing, insurance company ratings, and policy limits.