Do realtors carry E&O?

Asked by Daisy, Exton, PA Tue Aug 28, 2012

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David Brauner, , San Diego, CA
Thu Feb 14, 2013
Hi Daisy,

According to NAR's most recent Realtor survey, only about 23% of Agents/Brokers carry E&O Insurance--and typically brokers are more likely to carry insurance than agents--it's often the case that agents are covered under their broker's policy.

I've been serving real estate professionals as an insurance broker at for over 11 years now. Our minimum annual premium starts at $369, taxes and fees not included.

A bit of advice for Agents:
We recommend that agents carry their own E&O insurance, even if covered under a brokerage policy. The reason for this is if your Broker retires or non-renews his policy, your "Prior Acts" coverage, i.e. the coverage that you had under your Broker's policy is discontinued and you are left with a potential liability risk. If it's possible, sometimes a broker will let you opt out of their policy and you can purchase your own. Not only does it put you in a better position, in that YOU get to control your liability/risk by keeping your insurance current, but it can also save you money.

If you're still looking for a quality program, or you have questions regarding insurance in general, I encourage you to give us a call at 888-347-5273.

Our application process is quick and easy.

David Brauner…
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Ruth and Per…, Agent, Los Gatos, CA
Sun Sep 9, 2012
Yes any Realtor or Brokerage will carry E & O.

If your brokerage does not offer E & O then, you should protect yourself and carry a policy.
Check with your MLS Board they will recommend some, also check the Monthly Realtor Magazine.

Prudent for you to work for a larger company if you are just starting off, this will help you learn the ropes and understand the value by attending the weekly office meetings.

Good luck.

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Mike Sullivan, Agent, Gainesville, FL
Sun Sep 9, 2012
Absolutely yes....they can certainly ask any realtor if the DO, and in fact request a copy of the declarations page for the E&O policy if you wish to go that far.
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Susan Mangig…, Agent, West Chester, PA
Sun Sep 9, 2012
I can't speak for all real estate companies but our company requires us to carry errors and omission insurance.
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Nick & Trudy…, Agent, Devon, PA
Wed Aug 29, 2012
Daisy, most larger big name brokerages require their agents to be Realtors and carry E&O insurance. Even a small brokerage would most likely have E & O insurance. Being a Realtor requires agents to uphold a code of ethics that is stricter than the rules required by the state real estate commission.

If you have a complaint, you can usually proceed by first going through the local Realtor Association, for you in Exton, that is most likely Suburban West Realtors Association. They can give you advice and help how to proceed. Their web site is shown below.
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Benny Smith, Agent, Pittsburgh, PA
Tue Aug 28, 2012
Yes. I do not know of any company that does not require E & O
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Andrew T. Ta…, , West Chester, PA
Tue Aug 28, 2012
100% yes, like some of the other agents said I couldn't imagine a brokerage not carrying it.
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Amy Victor, Agent, West Chester, PA
Tue Aug 28, 2012
Yep, we sure do! Let me know if I can help you with anything else!
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Whitney Smith, Agent, West Chester, PA
Tue Aug 28, 2012
Yes. Absolutely. Realtors are charged $600 or so every year.
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Cat Mayo, Agent, Newton, MA
Tue Aug 28, 2012
I know I do! Can't imagine a brokerage not having the agent carry E & O.
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