Learn about business insurance requirements and the most common policies for real estate agents and brokers in Texas.
Which policies are required for real estate agents and brokers in Texas?
If you have a commercial lease, your property manager may require you to purchase general liability insurance. Commonly purchased by real estate agents and brokers in Texas, general liability insurance can protect your business from expenses associated with common mishaps, such as client property damage and injuries.
Your clients may require errors and omissions insurance in a contract. Also called professional liability insurance, errors and omissions insurance provides financial protection if a client files a lawsuit claiming your work caused financial harm because it was late, erroneous, or incomplete.
Texas state law does not require employers to carry workers’ compensation coverage, but businesses that do not carry a policy are required to notify their employees and the Texas Division of Workers’ Compensation of their status as a non-subscriber. Coverage can be purchased through a private insurer or the state’s competitive fund.
Business-owned vehicles must be covered by commercial auto insurance. Personal vehicles used for business purposes should have commercial coverage, as well.
What are the most common policies for a real estate agent or broker in Texas?
General liability insurance
General liability insurance is the foundation of a real estate agent or broker’s business protection, with coverage that extends to client injuries, client property damage, and advertising injuries. Most commercial leases require you to have this coverage.
Errors and omissions insurance (E&O)
Many clients require proof of errors and omissions insurance before entering into contracts for professional services. Though E&O insurance is not required in Texas, this policy provides crucial protection and some states require real estate agents to carry it. This policy, also called professional liability insurance, can help cover legal expenses if a real estate agent or broker is sued for unsatisfactory performance or a work mistake.
Texas workers' compensation
Though Texas state law does not require employers to carry workers’ compensation coverage, medical bills can add up if an employee is injured on the job. Workers’ comp can help pay medical expenses and partial lost wages for work injuries. It also covers the cost of a lawsuit if an employee sues over an injury.
Business owner's policy (BOP)
Real estate agents and brokers often qualify for a business owner’s policy. This package helps your business save money by bundling commercial property insurance with general liability insurance at an affordable rate.
Commercial auto insurance
Personal auto insurance policies typically exclude business use, which means you could end up paying for an auto accident if it happens on a work errand with your personal vehicle. Commercial auto insurance is required for vehicles owned by real estate companies. Hired and non-owned auto insurance covers personal vehicles used for business purposes.
Cyber liability insurance
Cyber liability insurance can help real estate agents and brokers survive data breaches and cyberattacks experienced by your company. Many professional liability policies include this coverage, but check with your licensed Insureon agent to make sure.
What do real estate agents and brokers in Texas pay for insurance?
Real estate agents and brokers in Texas can expect to pay slightly more for most business insurance policies. However, they spend significantly less than the national median on workers’ compensation coverage. Texas state law does not require your business to carry this coverage, so it may be tempting to go without a policy. However, any short-term savings could be instantly negated if a worker is injured without coverage. Overall, an individual in the real estate industry in Texas can expect to spend just $195 per month to secure their small business.
Save time and money with Insureon
Insureon’s industry-leading technology helps real estate agents and brokers in Texas save time and money shopping for insurance by comparing policies from top U.S. carriers. Start a free online application to review quotes for the policies that best fit your business. Our insurance agents are licensed in Texas and can answer your questions as you consider coverage.
To make the application go quicker, have this information ready:
- Workforce details, such as the number and types of employees
- Current and projected revenue
- Business partnerships
- Insurance history and prior claims
- Commercial lease insurance requirements
Apply for free real estate agent and broker insurance quotes today.