The 6 Best E&O Insurance Providers

Every agent needs errors and omissions (E&O) insurance. It offers protection from incurring costs due to accusations of inadequate work, negligent actions, and failure to provide the expected service. It will cover your defense and settlement costs and the time required to respond to a claim as well as the potential damage to your company’s brand and reputation.

Picking the right provider is important  – you should find one with reasonable rates, reliable service, and a good industry reputation. We’ve reviewed the top E&O providers based on these factors – check out the analysis below to make the right choice.

The 7 Best E&O Insurance Providers

Best Overall E&O Insurance Provider

Lloyds

Price
$$-$$$$
Lead Types
N/A
Features
Large network, fast payments, research forward
Best For
Solo agents & brokers
Best Array of Insurance Options

Nationwide

Price
$$$-$$$$
Lead Types
N/A
Features
Easy to access, large company
Best For
Solo agents & brokers
Most Reputable E&O Insurance Provider

The Hartford

Price
$$$-$$$$
Lead Types
N/A
Features
Focus on diversity, sustainability and communities
Best For
Solo agents & brokers
Premium E&O Insurance Provider

Chubb Insurance

Price
$$-$$$$
Lead Types
N/A
Features
Quick payments, lots of options
Best For
Solo agents & brokers
Cheapest E&O Insurance Provider

Hiscox

Price
$$-$$$$
Lead Types
N/A
Features
Offers a wide range of services, custom options
Best For
Solo agents & brokers
E&O Insurance Offering the Best Guidance

Victor Insurance Managers

Price
$$-$$$$
Lead Types
N/A
Features
Real estate specific, $0 deductibles
Best For
Solo agents & brokers

E&O insurance is something no real estate agent should be without. The companies listed above will provide you with comprehensive coverage, fair pricing and convenient service. Which provider do you feel is best suited to your needs?

Why Do Realtors Need E&O Insurance?

There are many instances where a realtor may need E&O insurance. Here are some examples of when it could come in handy. 

  • If you show a home but neglect to mention a structural flaw
  • If you describe a property incorrectly in a home listing
  • If you give incorrect legal advice to a client

Basically, your insurance will cover you in any of the following instances:

  • Misrepresentation
  • Negligence
  • Inaccurate advice
  • Errors 
  • Omissions

Basic E&O insurance will cover fees including 

  • Attorney costs
  • Court costs
  • Administrative costs
  • Judgements and settlements

More extensive coverage is also available. 

E&O insurance is mandatory in some states and highly recommended regardless of your location.  If you work for a brokerage, the agency may have an insurance policy that covers you. If you work independently, you will need your own policy. 

Our Methodology:

Our in-house real estate experts spent hundreds of hours researching, scoring, and ranking the top E&O insurance providers. We looked at everything from pricing, package options, and the coverage available. We’ve ranked and rated each company that offers E&O insurance on 7 different factors to come up with the very best providers. The short version of factors considered are: 

  1. The Fine Print: Read the fine print paying special attention to the insuring clause that tells you who is protected under the policy and when payments will be made. You must also consider which benefits are not available and which professional services the policy covers.
  2. Coverage Limits: The coverage limits will be expressed as two numbers, for example, $500,000/$1,000,000. This means the policy will pay up to $500,000 per claim but no more than $1 million for all claims during the policy period. Make sure the coverage limit is not so low that it won’t cover your business risks. Too high of a limit may raise your premium and provide you with more than you need.
  3. Claims Made: A claims made policy is desirable because it will protect you for losses that happened years ago even if you weren’t insured at the time.
  4. Risk Pooling Plans: A risk pooling plan is not technically insurance. It does not require the company to pay for your claims. If the premium seems suspiciously low, make sure you are not working with a risk pooling company.
  5. Insurer Ratings: Insurer ratings indicate whether an insurer has set aside adequate financial reserves to cover future claim contingencies. If it has not, it may be an insolvency risk. There are four major firms that evaluate insurers, A.M. Best, Moody’s, Fitch, and Standard & Poor’s. It’s wise to go with a provider that has A ratings from each.
  6. Online Purchasing: It will be convenient to go with a company that can process your entire purchase online. Beware because some agencies will have you start the process just to capture your information and will make you call one of their agents before you complete the transaction.
  7. Hidden Fees: Some providers may charge you additional fees such as membership fees and risk management fees. It’s wise to inquire about these fees before signing on the dotted line.

About the Author

Jim Gray got licensed in 2013 and sold 57 houses in his first year. Over the next 6 1/2 years he went on to sell 437 homes with a small team. He went on to manage the lead generation department of the 13th largest expansion team at Keller Williams and designed lead generation and conversion systems for 60 agents in 7 locations in 4 states that drove 600 home sales in a 2 year period. Jim currently does real estate team development and coaching for some of the largest real estate teams in the country.

Last Updated: 3/19/2024