Q: I am a real estate broker and just left a big agency. How much is E&O?
I am a real estate broker. I left a big franchise agency recently and ventured on my own. I wanted to get a quote for basic E&O insurance. Can you please provide me a quote? What information do you need from me? — Leah Y., Los Angeles, CA
A. Congratulations on starting out on your own! It's a big leap, and you're smart to be looking to into real estate Errors and Omissions Insurance coverage. We know that 38 percent of agents have to pay for their E&O out of pocket, so you're actually in a fairly common position.
So how much will E&O coverage cost? To answer that question, let's talk about what an insurance quote really is. When you fill out an online insurance application, you'll provide information about your business that our agents will use to customize insurance quotes for you. Required information generally includes…
- The location of your business.
- How long you've been in real estate.
- Information about past E&O claims you've made (if any).
- Projected revenue (just a rough estimate).
- How many employees you have (if any).
- What your daily operations involve.
When you fill out an application, it's smart to have this information handy. It'll make the application process quick and easy.
The cost of E&O insurance will actually depend on the factors we listed above. Real estate agents with prior claims history will pay more for E&O than agents with a spotless record. Small agencies generally pay less than larger ones, but costs will vary from one business to the next.
You can browse our sample insurance quotes for real estate agents, which show that an agent's E&O often costs between $508 and $975 in annual premiums. If you're a landlord, property manager, appraiser, or other real estate professional, your costs will be different.