A No-Brainer: E & O Insurance for Realtors

From start to finish, a real estate transaction is fraught with stress and loaded with risk exposures for all parties.

From start to finish, a real estate transaction is fraught with stress and loaded with risk exposures for all parties. As a real estate agent or broker, you understand that tempers tend to run high when dealing with the large sums of money involved in the sale of a home or property.

A mistake (whether real or perceived) can often lead to litigation. An E&O insurance real estate policy is often the first line of defense in protecting your business from what potentially could be a significant financial hit.

What Is Covered

An E&O insurance real estate policy protects a realtor from a customer’s claim that negligence (error) and/or failure to adequately perform expected duties (omission) has caused him or her financial harm. Typically, such insurance pays for attorney fees, court costs and judgment awards, up to the predetermined limits of the plan. Some of the more common claims against real estate professionals include:

  • Misrepresentation
  • Mistakes resulting in financial loss
  • Breach of fiduciary duty
  • Failure to follow terms of contract
  • Fair housing/civil rights actions


What Is Not

Fraudulent or dishonest acts (including criminal activities) are not covered under an E&O policy. In addition, polluted property transactions, property damage and claims of personal injury are also excluded from coverage.

The Bottom Line

Mistakes can and do happen in any business. Protect your company’s financial future with an E&O insurance real estate policy.