Real estate E&O insurance, answered.

E&O is a specialized form of professional liability insurance designed for real estate agents and brokerages. It responds to claims alleging negligence, errors, or omissions in the professional services you provide — failure to disclose property defects, fair housing claims, contract errors, or misrepresentations during a transaction. It covers defense costs, court costs, and any settlement or judgment up to your policy limits.

It depends on the state and the brokerage. Some states require all licensed agents to carry E&O. Most major franchises (Keller Williams, RE/MAX, Coldwell Banker, etc.) require it as a condition of affiliation. Most banks and lenders require it on commercial deals. Even where it's not required, it's effectively mandatory because the cost of a single uncovered claim — even one you'd ultimately win — would dwarf years of premium.

Common covered claims include: failure to advise (sell-side), failure to disclose property defects, fair housing violations, breach of contract, negligent misrepresentation, errors in listing data, missed deadlines, and improper handling of earnest money. PBI Group's policy form also includes Bodily Injury / Property Damage extension, which responds to slip-and-falls during showings and similar claims.

E&O policies generally exclude intentional acts (fraud, deliberate misrepresentation), criminal acts, claims arising from owned property (covered by personal lines), employment practices (covered by EPLI), and cyber events involving wire fraud or data breach (covered by Cyber Liability). Each carrier's exclusions vary — read your policy form.

For a typical residential brokerage, E&O premium runs $385–$650 per agent per year for $1M/$2M limits. The exact number depends on state, claim history, agent count, and the specific policy form. Premium for a property management book typically runs $1,400–$3,800 per year for the firm, depending on door count. We publish detailed cost guides with state-specific ranges.

Most residential brokerages carry $1M per claim / $2M aggregate ($1M/$2M). Larger or higher-risk brokerages often carry $2M/$2M or $3M/$3M. Property management firms with significant assets under management often carry $5M+. The franchise or franchise-network requirements often dictate the floor — we recommend going above the floor when claim history or transaction volume justifies it.

Almost all real estate E&O policies are claims-made. This means the policy responds when a claim is made against you while the policy is in force, regardless of when the alleged error occurred — so long as you've maintained continuous coverage. If you let coverage lapse, you lose the ability to make claims for prior acts. This is why E&O renewal continuity matters.

A common policy enhancement that waives the deductible if the matter is resolved without indemnity payment (e.g., the case is dismissed or you prevail at summary judgment). PBI Group's preferred policy form includes a $0 deductible waiver as an option — meaning if you successfully defend the case, you owe nothing out of pocket.

Inside the limits means defense costs reduce your available indemnity. Outside the limits means defense is paid in addition to your policy limits, which is the stronger coverage. PBI Group prefers carriers that offer 'outside the limits' or at least 'inside but with a high sub-limit' for defense.

Almost always yes. E&O addresses professional negligence claims; Cyber Liability addresses data breaches, wire fraud, and 1st-party network damage. Wire fraud in real estate is now the leading cyber loss category, and E&O policies typically don't fully respond to those events. Most brokerages with more than ~10 agents carry both.

Individual policies cover one agent. Firm-wide policies cover the brokerage entity and every agent (employee or independent contractor) performing services on the firm's behalf. Firm-wide is dramatically simpler administratively and closes coverage gaps that arise when individual agent policies have different limits, exclusions, or expiration dates. Most brokerages with 10+ agents go firm-wide.

Simple submissions can quote in 1–2 business days. Larger or more complex risks (large agent counts, prior claims, unusual coverage needs) may take 5–7 days. Renewal pricing for existing PBI Group clients typically lands in under 30 minutes the day we receive renewal data — we keep your file warm year-round.

Yes. PBI Group is licensed in all 50 states and DC. We're headquartered in Arlington, Virginia, and our specialty real estate program is admitted nationwide. Our primary E&O carrier is Palomar Specialty Insurance Company, an A-rated California carrier focused on real estate, with Lloyd's syndicates available for property management and specialty risks.

Most switches happen at renewal. Send us your current dec page and the most recent application; we'll review the policy form, identify any coverage gaps, and quote a like-for-like or upgraded policy. We never recommend mid-term cancellation — claims-made retroactive dates make timing important. We'll work the renewal calendar with you.