Real Estate E&O (Errors and Omissions) Insurance

Whether you’re a real estate agent or a real estate investor , the real estate industry can be a gateway to a huge amount of profit, but it can also expose you to a lot more risk than most other industries. This risk is typically financial, since there’s a relatively high chance of getting sued if something goes wrong.

Errors and omissions insurance real estate policies are going to be the focus of today’s article. We’re going to focus on what an E&O insurance real estate policy can do for you and your business and we’ll also look at the average real estate E&O insurance cost that professionals can expect to pay for coverage. Finally, we’ll explore some of the best real estate E&O insurance companies.

real estate E&O insurance

E&O Insurance for Realtors

E and O insurance real estate policies are relatively common amongst real estate agents and investors. In fact, these policies are required by agents in nearly 15 states, so many of them don’t have a choice but to start paying for errors and omissions insurance for real estate agents.

Realtor errors and omissions insurance applies when you make a mistake while you’re dealing with a customer. If your negligence ends up causing damages to a client, then your E&O insurance policy will kick in and pay for the damages as well as any legal fees that resulted from the situation.

Real Estate Errors and Omissions Insurance per Transaction

You’ll also have to consider the way you pay for your E&O insurance for real estate agents, since different companies have different billing methods. Cheap E&O insurance for real estate agents is usually sold per transaction instead of per month, ensuring that you only pay when you actually need the coverage.

This makes the most sense for real estate agents who are trying to save as much money as possible because you won’t need E&O coverage if you’re not making any deals. Another advantage to paying for E&O Insurance per transaction real estate is that there are limits per year, usually capped out at between $400 and $600.

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Real Estate E&O Insurance Cost

When considering the errors and omissions cost real estate policies, there are a few different factors that you and insurance carriers will have to account for. The most significant thing that will impact the cost of your E&O insurance is the number of transactions that you complete over the course of a year.

Real estate E & O insurance gets more expensive with each transaction because every one of them increases the chance of the insurance company having to pay out on your behalf. Since your insurance premiums are directly correlated with the risk of the insurer, higher risk usually means higher premiums.

Company Cost per month Cost per year
eXp Realty $85* $1020**
Rice Insurance $56 $672
Keller Williams $33 $396

E&O Insurance for Appraisers

Real estate appraiser E&O insurance is usually a little more affordable than E&O coverage for real estate agents, though once again, the cost of insurance will vary from person to person. The factors we mentioned above will also apply in these cases.

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Best E&O Insurance for Realtors

Real estate E&O insurance is available from a wide range of companies, and selecting the right one will ensure that you pay the best possible E&O insurance cost real estate. The right company will also ensure that you get quality customer service, which is essential when your business might be on the line.

Rice Insurance Real Estate Errors & Omissions Insurance

RISC (Rice Insurance Services Center) is a company that specializes in mandated E&O insurance for real estate professionals. This means that the company only operates in states that require real estate agents to maintain an E&O policy so that they can legally practice.

Rice Insurance Policy Details

The Rice E&O policy is underwritten by Continental Casualty Company and it covers legal fees and damages related to mistakes and negligence on the part of the real estate professional. Keep in mind that Rice’s policies vary based on the state that you’re getting insured in since every state has different guidelines.


  • Available in most states where E&O is required

  • Relatively affordable

  • Covers legal fees and damages


  • Underwritten policies

Average cost: $56 per month

Best for: Smaller businesses

Our Rating: 4.5/5

eXp Realty E&O Insurance

eXp Realty works with residential real estate agents, and while they may not be an insurance carrier, they have underwritten E&O policies for all agents that are their members. One of the most notable things about eXp is that they aren’t afraid to embrace progress, taking advantage of the internet far more than their competitors.

eXp Realty Policy Details

eXp Realty offers the same rate for E&O coverage to all of their members, though you’ll also have to pay for the additional cost of membership. One thing to consider about eXp’s policies is that your rates are based on the number of transactions you undertake every year, with a maximum cost of $500 per year.


  • Low price

  • Maximum limit of $500 per year

  • Additional benefits to membership


  • You have to pay extra for membership

Average cost: $40 per transaction

Best for: Agents making fewer transactions

Our Rating: 4.3/5

Keller Williams E&O Insurance

Keller Williams is one of the largest real estate companies in the world, and they’ve been in business since 1983. Even though they’re not an insurance carrier themselves, Keller Williams has a partnership with Austin and Austin Insurance Services so that they can provide their members with E&O coverage.

Keller Williams Policy Details

Keller Williams has a specific real estate E&O insurance policy for their members, and they’re a little more transparent with what you get out of it than eXp or Rice. For example, the Keller Williams policy features a $2 million limit per occurrence and aggregate, though legal fees are split 80/20.


  • $2 million limit

  • Good price

  • Applies to commercial sales too


  • Doesn’t cover all legal fees

Average cost: $33 per month

Best for: Commercial real estate agents

Our Rating: 4.5/5

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