There were 48,060 real estate brokers in the US in 2022. As a real estate broker, you need to protect your business financially now more than ever. One way to do that is through a comprehensive insurance policy. Consider getting insured because you’ll need adequate coverage just like real estate agents.
By getting covered, you can rest easy even if you get involved in a lawsuit with a real estate investor. You can also use your insurance policy to cover financial losses in case the office gets damaged or destroyed. Continue reading to get answers to your questions about real estate broker insurance
CoverWallet | NEXT (Best) | Thimble | Hiscox | The Hartford | |
---|---|---|---|---|---|
Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $300,000/$1,000,000 | $1,000,000/$2,000,000 |
Aggregate limit | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 | $300,000/$2,000,000 | $1,000,000/$2,000,000 |
Products and completed operations aggregate limit | $2,000,000 | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 |
Advertising injury coverage aggregate limit | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 |
Tenant’s legal liability coverage limit | $100,000 | $100,000 | $5,000 | $100,000 | $1,000,000 |
Waiver of subrogation included? | Yes | No | Included | Can be included | No |
Hired/non-owned auto liability coverage included? | Yes | No | Excluded | Can be included | Can be included |
Equipment breakdown floater included? | No | Yes | Yes | Can be included | Can be included |
General liability insurance for real estate brokers is a policy that protects you from third-party injury and property damage claims. Some situations to use this policy include:
A customer slips and falls while walking on your business property
While helping a customer, one of your employees accidentally damages their personal property
A real estate broker can further customize his policy by adding on additional insurance protection. Some examples include:
Employment practices liability–Adds protection for discrimination, harassment, and wrongful termination claims from employees
Tools and equipment–This coverage helps protect tools and equipment used for business when they are damaged or stolen in covered events
The coverage limits for this real estate broker liability insurance will often vary but are typically at $1 million per occurrence and $2 million in aggregate for the policy term.
Generally, the price of general liability insurance is based on the amount of risk in your business, the size of your business, its financial position, and the size of your employee payroll.
CoverWallet | NEXT | Thimble (Best) | Hiscox | The Hartford | |
---|---|---|---|---|---|
Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $1,000,000 | $1,000,000 |
Aggregate limit | $2,000,000 | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000 | $2,000,000 |
Name additional insureds? | Yes | Yes | Yes | Yes | Yes |
Waiver of subrogation included? | Yes | No | Yes | Can be included | No |
Professional liability insurance for real estate brokers is a type of insurance policy that protects against mistakes, errors, and negligence in your business practices. Examples of when coverage can apply include:
A client lawsuit accused you of failing to provide adequate services
A mistake that one of your real estate brokers made caused the customer to lose money.
Real estate broker e&o insurance is another name for professional liability insurance. Real estate broker errors and omissions insurance protects from a variety of different kinds of claims like:
Breach of contract
Failing to maintain listings
Mistakes in drafting sale documents
Not keeping client matters confidential
Additional insured–This allows you to add other parties to your insurance policy that are not part of the original coverage. Typically additional insured parties have more limited protection unlike the policyholder
Excess liability–Allows you to purchase additional coverage beyond the coverage limits of your real estate broker professional liability insurance policy
The coverage limits of real estate broker e&o insurance are $250,000 and $2 million per occurrence and aggregate.
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CoverWallet | NEXT (Best) | Thimble | The Hartford | Hiscox | |
---|---|---|---|---|---|
Building coverage limit (minimum) | $50,000 | $330,000 | $25,000/$500,000 | $60,000 | $25,000 |
Contents coverage limit (minimum) | $50,000 | $35,000 | $25,000/$500,000 | $60,000 | $15,000 |
Outdoor signs | Excluded | $2,500 | Excluded | Excluded | Included |
Accounts receivable | Excluded | Excluded | $5,000/$10,000 | Excluded | Included |
Money and securities | Excluded | $2,500 | $1,000 | Excluded | Included |
Lock and keys | Excluded | $2,500 | Excluded | Excluded | Included |
Business interruption floater | Excluded | Included | Included | Excluded | Included |
Equipment breakdown floater | Excluded | Included | Excluded | Excluded | Included |
Inland marine insurance floater | Excluded | Excluded | $10,000 | Excluded | Excluded |
Employee dishonesty floater | Excluded | $5,000 | $2,500 | Excluded | Excluded |
Commercial property insurance protects your building and the property contained within it. Some situations where this insurance is used include:
A fire breaks out on your business property
Severe windstorms damage some of your equipment
A criminal breaks into your office and steals some electronics
Some add-ons to consider include:
Flood insurance–Provides protection from floodwater damage that might not be covered in a standard commercial property policy
Equipment breakdown–Covers damage from internal forces on your equipment from things like mechanical failure or power surges
A typical coverage limit for commercial property is around $60,000. Your coverage limit is calculated based on the value of your commercial property.
Commercial property insurance automatically offers a home-based business policy wording. This means that the policy will treat your home as a commercial property so long as a covered peril happened while it’s being used for business operations.
Typically no. You would need commercial auto insurance to cover liabilities and damage to your business vehicles. Commercial property insurance will cover property like equipment and supplies that are stored at your business premises.
CoverWallet | NEXT (Best) | Thimble | The Hartford | Hiscox | |
---|---|---|---|---|---|
General liability aggregate limit | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 | $300,000/$2,000,000 |
Commercial property coverage limit | $50,000 | $330,000 | $25,000/$500,000 | $75,000 | $75,000 |
Optional policies can be added? | Yes | Yes | Yes | Yes | Yes |
Name additional insureds for free? | Yes | Yes | Yes | Yes | Yes |
BOP discount? | Yes | Yes | Yes | Yes | Yes |
Your investment works well with a business owner’s policy. This insurance combines the protection of general liability and commercial property insurance. Here are some situations where this insurance can help:
A customer injures themselves while walking through a house tour
A weather event causes property damage to your real estate office
Business interruption–Protects your business's lost profits from a physical peril and helps you make payments on loans, mortgages, and rent
Outdoor property–Extends protection to outside business property like real estate signs
Employee dishonesty–Covers incidents that employees cause, like stolen office equipment, forgery, and cyber crimes. It is important to consider because employee theft costs $50 billion per year, according to the AWCI
BOP has a typical coverage limit of $1 million per occurrence for general liability, and the commercial property coverage is determined by your property's value.
No. Most components of BOP are not required by law. However, many clients and companies you work with might require a form of general liability insurance to do business. Some landlords might also require commercial property insurance if you rent your business space.
Yes, it can be. This policy adds protection for employees' personal vehicles that they use for business purposes.
NEXT | Thimble | Hiscox | The Hartford | |
---|---|---|---|---|
Aggregate limit | $3,000/$10,000 | $2,500/$5,000 | $15,000/$25,000 | $5,000-$10,000 |
Covers hired and borrowed equipment? | $3,000/$10,000 | $2,500/$5,000 | No | Yes |
Miscellaneous equipment also covered? | $5,000/$10,000 | No | Yes | Yes |
Offered as an endorsement to general liability insurance? | Yes | Yes | Yes | Yes |
Deductible | $500 | $500 | $0 | $0 |
Tools and equipment insurance is a policy that protects your tools and equipment if they get damaged, destroyed, or stolen. Example situations include:
Your computer equipment gets stolen by someone looking to sell it
The camera or computer you use gets damaged by a lightning surge
Equipment breakdown coverage–Real estate brokers can purchase this coverage to protect tools and equipment from damage that causes that may normally be excluded. This can include causes like mechanical breakdowns and power outages that cause an electronic surge.
Inland marine–A type of insurance coverage that protects tools and equipment when they are stored offsite as well as during transportation
Tools and equipment insurance covers around $5,000. Higher limits are available if you have more expensive equipment.
Tools and equipment insurance gives you flexibility because it covers your tools while they are off your business property. This means you can bring your real estate tools with you and not have to worry about them if they get damaged or stolen.
Commercial auto insurance protects your business vehicle from liability claims and accidents while on the job. Some situations to use this coverage are listed below.
You drive a commercial vehicle to pick up a client to look at a house but get into an accident along the way
A business vehicle you use is parked while you are working and gets vandalized by someone on the street
You will see that commercial auto insurance has several components, which include:
Comprehensive–Protects from physical perils outside of accidents like weather, vandalism, and theft
Collision–Protects your vehicle when it gets into an accident with another vehicle on the road
Auto liability–Covers costs associated with liability claims involving injuries to others and their property
Uninsured/underinsured motorist–Provides protection when another driver’s insurance cannot cover the costs of your medical treatment or damage to the vehicle you own
Commercial auto coverage ranges between $100,000 and $1 million. Typically it is recommended that you shoot for a coverage of at least $500,000.
Roadside assistance–Helps cover costs to get your vehicle out of a bad situation on the road, like towing fees
GAP coverage–GAP coverage will cover the remainder of you the cost you owe on a loaned vehicle when it gets totaled due to theft, vandalism, fire, collision, and other covered perils
Yes, some insurance providers allow you to use your personal vehicle with commercial auto insurance. Keep in mind this will only cover your vehicle when it is being used for business-related matters.
Workers' compensation insurance is a policy that provides financial benefits to employees that contract an illness or get injured while working for you. Examples include:
An employee develops a chronic hand condition like carpal tunnel syndrome from sitting at the computer working for clients
One of your employees falls and injures their back, requiring medical treatment
A First Report of Injury (FROI) is an important form that helps employees get their benefit claims process started. It is filed by the worker, employer, or medical provider and sent to the insurance provider.
Some types of employee benefits will have no limits or exclusions. However, a state’s governing body will typically limit the amount of lost wages that can be paid out.
Employer’s liability–Provides protection to the employer when employees sue for negligence following a work-related injury or disease. It is sometimes automatically included in your workers’ compensation policy
Cost per Month | Cost per Year | Deductible | |
---|---|---|---|
General liability insurance | $47 | $564 | $0-$500 |
Professional liability insurance | $60 | $720 | $500-$1,000 |
Commercial property insurance | $80 | $960 | $1,000-$2,000 |
Business owner's policy | $127 | $1,524 | $1,500 |
Tools and equipment insurance | $49 | $588 | $500-$1,000 |
Commercial auto insurance | $61 | $732 | $500-$1,000 |
Workers compensation insurance | $93 | $1,116 | $2,500-$5,000 |
The average real estate broker insurance cost is $47 per month or $564 per year for a $1 million general liability insurance. Real estate broker e&o insurance cost is $60 per month or $720 per year for a $1 million coverage.
Factors that affect the cost of premiums are claims history, business history, deductibles, policy limits, revenues, and location. Here’s a table showing the cost of a $1 million general liability insurance from companies we recommend:
Cost per Month | Cost per Year | Best for | |
---|---|---|---|
NEXT | $25 | $300 | Best overall; Fastest general liability insurance for real estate brokers |
Hiscox | $29 | $348 | Real estate broker insurance with automatic renewal |
CoverWallet | $32 | $384 | Comparing real estate broker insurance quotes online |
Tivly | $35 | $420 | Comparing real estate broker insurance quotes over the phone |
The Hartford | $40 | $480 | Real estate industry experience |
Thimble | $42 | $504 | Short-term general liability insurance for real estate brokers |
Get all the best quotes from leading providers in a click of a button!
Here are some companies you might want to work with. Read some of the reviews below to know their pros, cons, and average cost for a $1 million general liability insurance.
Best overall
Issues an online proof of insurance instantly
Fastest general liability insurance for real estate brokers
Great customer service and reputation
Excellent rates
Outstanding value for money
Get a 10% discount if you buy two or more policies
Couldn’t find any
NEXT is a spectacular insurance provider that offers real estate brokers many advantages when building their policies. They have personalized policies at a competitive price and offer components of real estate broker insurance like general liability, professional liability, workers comp, tools and equipment insurance, and more. NEXT has an A- rating with AM Best and a B+ rating with the Better Business Bureau.
Best for: Best overall; Fastest general liability insurance for real estate brokers
Average cost: $25 per month
Our rating: 10/10
200 years of insurance experience
Personalized customer service
Renowned company for workers comp insurance
Typically offers fewer discounts than some competitors
The Hartford has experience in the form of property management policies and real estate broker insurance made for your market. They clearly outline the advantages of their policies to real estate brokers and offer common policies like general liability, commercial auto, and professional liability. The Hartford has A+ rating from AM Best.
Best for: Real estate industry experience
Average cost: $40 per month
Our rating: 10/10
Extensive online dashboard that is perfect for policy tracking
Excellent customer service
Compare quotes quickly online
HNOA coverage automatically included in general liability insurance
Not an insurance company but an insurance broker
CoverWallet’s allows you to quickly compare quotes for real estate broker insurance. You get to shop policies of its partners with options like general liability, = business owner’s policy, and more. CoverWallet boasts an A+ from the BBB.
Best for: Comparing real estate broker insurance quotes online
Average cost: $32 per month
Our rating: 10/10
Has multiple partners
Helps connect your business with a provider that meets your needs
Compare quotes over the phone
Have to call to get a quote
Tivly allows you to shop a digital marketplace with over 200 partners. They offer policies with names like The Hartford and Liberty Mutual. The company uses flexible targeting to match policyholders with insurance companies to get the best results. Tivly has an A rating from the Better Business Bureau. Call now to compare quotes over the phone.
Best for: Comparing real estate broker insurance quotes over the phone
Average cost: $35 per month
Our rating: 10/10
Great online experience
Flexible payment models
You can get general liability as a short-term coverage
Some policies may be more limited in options
Thimble offers a suite of policies essential for real estate broker insurance like general liability, professional liability, commercial property, and workers’ compensation insurance. The company is quick to buy from and serves over 300 professions. They have an AM Best financial strength rating of A+.
Best for: Short-term general liability insurance for real estate brokers
Average cost: $42 per month
Our rating: 10/10
Customized policy
Get a discount when bundling multiple policies
Numerous upgrades to base policies
Automatic policy renewal
Some policies may not be covered in all states
Hiscox is a small business-focused insurance provider with policies like general liability, professional liability, and workers' compensation. Their dedicated team works with you to get a unique and customized policy that maximizes the coverage for what you are paying. Hiscox has an A+ rating for long-term insurer strength from Fitch and an A rating from AM Best.
Best for: Real estate broker insurance with automatic renewal
Average cost: $29 per month
Our rating: 10/10
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!