Real Estate Errors & Omissions Insurance

Who this coverage is for

Real estate E&O is required for licensure in most states and is the single most common claim line in real-estate operations. Failure-to-disclose claims dominate the loss runs: a buyer learns of a defect after closing and alleges the agent knew or should have known. Carriers want documented seller disclosure, agency-relationship paperwork, and standard-form contract usage. We schedule the brokerage and individual agents so the policy responds to claims against either party.

Common claim examples

• Failure to disclose a known property defect; buyer alleges damages after closing
• Contract error in a purchase or listing agreement causing financial loss
• Fair-housing complaint alleging discriminatory treatment or steering
• Misrepresentation of square footage or boundary lines
• Property management decision (repair, eviction, lease term) alleged to be negligent

Claims-made structure

Professional liability is almost always written on a claims-made basis. The policy responds to claims first reported during the policy period (or extended reporting period) for incidents that occurred on or after the retroactive date. This is the opposite of occurrence-based GL — and the difference matters enormously for tail coverage when you change carriers.

Retroactive date and prior acts

The retroactive date is the earliest date for which a claim can trigger the policy. When you switch carriers, you typically want the new policy to honor your prior retroactive date so claims for old incidents (reported during the new policy period) are still covered. We confirm prior-acts coverage during the quote so there is no gap on your historical work.

What this coverage does NOT cover

• Bodily injury or property damage to third parties — that is general liability
• Employee injury — workers compensation
• Vehicle accidents — commercial auto
• Damage to your office or equipment — commercial property
• Intentional or fraudulent acts
• Claims arising before the retroactive date

What affects your premium

• Years of professional experience
• Annual gross billings or commissions
• Largest project value or transaction size
• Existing claims and prior incident history
• Use of subcontractors or sub-producers
• Coverage limits desired (commonly $1M, $2M, or $5M)
• Retroactive date desired (further back = higher premium but tighter coverage)
• State of operation and licensing status

Frequently asked questions