Insurance Cost for a Real Estate Agency: What Affects Your Premium?
- 6 hours ago
- 2 min read
Running a real estate brokerage involves significant responsibility, and insurance is one of the most critical expenses. Understanding insurance cost for a real estate agency helps brokers and agents manage expenses while ensuring adequate protection. Premiums can vary widely depending on business size, coverage type, claims history, and risk factors.
Real Estate Agency E&O Insurance Costs
Errors and Omissions (E&O) insurance, or professional liability coverage, protects against claims of negligence, misrepresentation, or failure to disclose important information during property transactions. Typical annual premiums range from $500 to $2,000 for small agencies, but costs can increase with:
Higher sales volume
More licensed agents
Complex transactions or commercial real estate deals
E&O insurance is often the most significant portion of a brokerage’s insurance budget.
General Liability and Property Insurance Costs
General liability and commercial property insurance protect your office, employees, and clients. These policies typically cost:
General Liability: $400–$1,200 per year for small offices
Commercial Property: $500–$2,000 per year, depending on office size, location, and building value
Factors influencing premiums include:
Office location and associated crime or fire risk
Property value and replacement cost
Safety measures such as security systems and fire alarms
Cyber Liability and Workers’ Compensation Costs
For agencies handling client data, cyber liability coverage is increasingly important. Costs can range $300–$1,000 per year, depending on data volume and cybersecurity measures.
If you employ staff, workers’ compensation insurance is required in most states. Premiums depend on payroll size, employee roles, and claim history.
Key Factors That Affect Real Estate Insurance Premiums
Several key factors impact insurance cost for real estate agencies:
Number of agents and employees – more staff increases exposure
Transaction volume and complexity – higher-value deals can lead to higher premiums
Claims history – past claims indicate higher risk
Coverage limits and deductibles – higher limits or lower deductibles increase cost
Office location – urban areas or high-crime neighborhoods can raise premiums
Implementing strong risk management practices, such as staff training, compliance programs, and cybersecurity, can help reduce premiums over time.
Get a Customized Real Estate Agency Insurance Quote
Insurance for real estate agencies is not one-size-fits-all. Working with a broker experienced in real estate agency insurance ensures policies match your transaction volume, agent count, and office risk exposure.
Request a personalized quote from Wexford Insurance to protect your brokerage, staff, and clients efficiently while optimizing premium costs.
