Does my personal auto policy cover me while driving clients?

Generally no. Personal auto policies typically exclude business use, and driving clients to showings is considered business use in most states. Agents usually need a commercial auto policy or a hired and non-owned auto endorsement to close this gap.

Do individual agents need their own E&O policy?

Many brokerages carry a firm-wide E&O policy covering all agents, but some agents purchase individual coverage for extra protection or because their brokerage requires it. Check with your broker to confirm how the firm's policy applies to you.

Are open houses covered under general liability?

General liability typically covers bodily injury or property damage that happens during an open house, since it is treated as a business activity of the brokerage. Coverage details vary, so it's worth confirming with your policy.

What if an agent is later accused of a bad disclosure?

E&O claims can surface well after a deal closes, since problems like undisclosed defects often surface after the buyer moves in. A claims-made E&O policy with an appropriate retroactive date typically responds to these delayed claims.

Professional

Insurance for Real Estate Agencies

Protect your brokerage from listing errors, showing mishaps, and the everyday risks of moving clients through properties.

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What underwriters look at

Real estate agents guide clients through one of the largest financial decisions of their lives, and a disclosure that gets missed, a contract detail overlooked, or advice that turns out wrong can lead to an errors and omissions claim years after closing. Brokerages are often named in these disputes even when an individual agent handled the deal, making firm-wide coverage essential.

Agents also spend much of their day driving clients to showings and open houses, creating meaningful auto liability exposure that a personal auto policy often does not cover when driving for business purposes. Open houses and property tours introduce additional risk, since agents are responsible for visitors' safety in homes they do not own or control.

Brokerages that lease office space for agent desks and client meetings carry standard premises liability too, and as teams grow, disputes with independent contractor agents over commissions or classification can also surface as employment-related claims.

Errors and omissions claims

Missed disclosures, contract mistakes, or disputed advice during a transaction can lead to claims from buyers or sellers, sometimes years after closing.

Business use of vehicles

Agents driving clients to showings face auto liability exposure that a personal policy typically excludes once the vehicle is used for business purposes.

Open house and showing incidents

Visitors touring a listed property can be injured on stairs, uneven flooring, or unfamiliar layouts, exposing the brokerage to premises liability claims.

Independent contractor disputes

Many agents work as independent contractors, and disagreements over commission splits or classification can escalate into employment-related claims against the brokerage.

The coverage stack for real estate agencies

Most owners in this class start here. A licensed agent will confirm what your contracts, state, and payroll actually require.

Professional Liability Insurance

Real estate E&O coverage responds to claims of missed disclosures, negligent advice, or transaction errors.

How it works

General Liability Insurance

Covers injuries or property damage that occur during showings, open houses, or office visits.

How it works

Commercial Auto Insurance

Covers agents' vehicles used to transport clients to and from listings, which personal auto policies typically exclude.

How it works

Business Owner's Policy (BOP)

Bundles property and liability coverage for the brokerage's office space at a typically lower combined cost.

How it works

What it typically costs

Real estate E&O premiums are usually priced per agent or based on total brokerage transaction volume, while other coverages scale with office size and vehicle use. Brokerages with higher-value listings or more transactions per year typically see higher premiums.

Business size	Typical annual range
Solo agent Reflects a single agent's E&O coverage, often required by the brokerage or MLS.	$500 – $1,500 / yr
Small brokerage (5–20 agents) Combines brokerage-wide E&O with general liability and office coverage.	$4,000 – $12,000 / yr
Larger brokerage (20+ agents) Higher transaction volume and multiple office locations typically raise total premium.	$15,000 – $40,000+ / yr

Business size

Typical annual range

Solo agent

Reflects a single agent's E&O coverage, often required by the brokerage or MLS.

$500 – $1,500 / yr

Small brokerage (5–20 agents)

Combines brokerage-wide E&O with general liability and office coverage.

$4,000 – $12,000 / yr

Larger brokerage (20+ agents)

Higher transaction volume and multiple office locations typically raise total premium.

$15,000 – $40,000+ / yr

Illustrative ranges only. Premium varies by state, carrier, limits, payroll, and loss history — it is not a quote.

What moves your premium

Number of agents and annual transaction volume
Average listing price in the brokerage's market
Prior E&O claims history
Whether agents use personal or company vehicles for business
Number and size of office locations

Read our cost guides

Real Estate Agencies insurance questions

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