If you’re a real estate agent, you probably have a pretty good handle on the insurance conversation that comes up before closing. But when was the last time you looked at your own coverage?
I’d start with a simple question: What does your brokerage’s insurance cover for you, and what are you responsible for yourself?
The answer may include several policies. E&O addresses a different problem than a car accident on the way to a showing. An injury at an open house raises different questions than a compromised email account.
Let’s walk through the conversations worth having before you assume everything is covered.
Start with what your brokerage provides
If your brokerage provides insurance, that’s a useful place to start. Ask for the coverage information and find out how it applies to you.
Your employment or independent contractor agreement matters, too. It may spell out insurance requirements and who is responsible for certain costs. Your status alone doesn’t tell us what a policy covers or who could be liable after a loss.
I’d want answers to these questions:
- Am I insured under the brokerage’s policy for the work I actually do?
- Does that include my team or separate business entity, if I have one?
- What limits and deductibles apply, and who pays the deductible?
- Are the limits shared with other agents?
- Who should I contact if I receive a complaint or a demand for money?
“The office has insurance” is a starting point. We still need to know what that means for you.
What does E&O insurance do for a real estate agent?
Errors and omissions insurance, also called professional liability, can help with covered claims that a mistake in your professional work caused someone a financial loss. Think of an allegation that a listing was inaccurate or that important information wasn’t disclosed.
A covered claim may include legal defense costs and a settlement or judgment, subject to the policy. Having E&O doesn’t mean every complaint or transaction is covered.
Along with the limit and deductible, ask whether defense costs reduce the amount left to pay a claim. Ask about exclusions for the services you provide, especially if you also manage property or sell property you own.
If you change brokerages, retire, or let a policy end, ask how claims involving earlier work would be handled. Have the insurer explain any retroactive date, reporting deadline, or extended reporting option before making the change.
You don’t need to memorize the policy. You do need to know who is covered, which work is included, and what to do when a problem comes up.
Tell your auto insurer how you use your car
Driving to listings and closings is part of the job. If you regularly carry buyers, drive substantial business mileage, or have an assistant using a vehicle for work, include those details in your insurance review.
Being a real estate agent doesn’t automatically mean you need commercial auto insurance. It also doesn’t tell us that your current personal policy fits. The insurer needs to understand how the vehicle is owned and used.
Tell your agent about the driving you do and ask whether your policy allows it, whether the use needs to be rated differently, and whether another policy is appropriate. Let’s get the answer for your situation rather than guessing from the words “business use.”
If your brokerage has hired and non-owned auto liability coverage, ask whose liability it protects. Don’t assume it replaces your own auto policy or pays to repair your car.
Our auto insurance page explains the basic coverages to review alongside that conversation.
What if someone gets hurt at an open house?
Suppose a visitor trips while you’re hosting a showing and says you should have warned them about a hazard. That raises a different coverage question than a buyer claiming your advice cost them money.
General liability can help with covered claims involving bodily injury or damage to someone else’s property. Whether a particular incident is covered depends on the facts, who is insured, and the policy’s terms and exclusions.
Ask how the brokerage’s general liability applies to agents hosting showings. A homeowner’s policy and your E&O policy shouldn’t simply be assumed to cover your liability.
If you have an office or business equipment, a business owners policy may also be worth discussing. It can combine property and general liability coverage, but it doesn’t automatically include professional liability or auto insurance.
Cyber coverage and wire fraud deserve separate questions
Your email account may contain contracts, client information, and messages about a closing. A compromised account can create a problem even if you never personally handle the closing funds.
Ask what a cyber policy would help with after a breach. That could include certain response costs or liability claims, depending on the coverage purchased.
Then ask specifically about fraudulent payment instructions and money sent to a scammer. A policy described as “cyber insurance” shouldn’t be taken as a promise that every wire fraud loss is covered. Ask about social engineering or funds transfer fraud coverage, whose money is insured, and any separate limits or conditions.
Coverage is only part of the conversation. Use multifactor authentication and independently verify payment instructions through a trusted contact method. If an email changes where money should be sent, confirm it using a phone number you already know is legitimate.
Keep personal and business umbrella coverage separate
A personal umbrella policy may add liability protection above qualifying personal policies. It shouldn’t be treated as extra E&O coverage or assumed to cover your real estate business.
A commercial umbrella is a different discussion. Ask exactly which underlying business policies it sits above and which activities are excluded. If you need higher professional liability limits, ask about that coverage specifically.
The word “umbrella” doesn’t mean every kind of claim falls underneath it.
What happens to your household if you can’t work?
There’s a personal side to this review, too. If an illness or injury kept you from working, how long could your household manage without your usual income?
Look at savings, health coverage, any disability benefits you already have, and the people who depend on your income. If you’re considering disability insurance, ask about eligibility, the waiting period, benefit amount, and how the policy defines a disability.
Life insurance is a separate conversation about what your family would need if you died. These decisions deserve attention alongside the policies connected to your work.
Bring the policies, and let’s start there
If you’re a real estate agent in Springboro or the surrounding Dayton area, bring your current auto policy, any business policies, and the coverage information your brokerage provides. Tell us how you work, including whether you drive clients, manage properties, have a team, or work from home.
We can start with your personal coverage and the questions your work raises. For specialized coverage, we’ll need to confirm available options and who should handle that part of the review.
Call (937) 550-9596 or book a conversation. The goal is to understand what you have, what you’re responsible for, and which questions still need an answer.
Coverage depends on the policy’s terms, limits, deductibles and exclusions. Availability and eligibility vary. Confirm coverage and any changes with the insurer. Questions about legal responsibility or your brokerage agreement should be discussed with an attorney.
Further reading: National Association of REALTORS®: Understanding E&O insurance; Insurance Information Institute: Small business insurance basics; FBI: Business email compromise; the insurer: Personal umbrella coverage and exclusions.