Business Insurance Requirements for Real Estate Agents in Florida

Despite fluctuations in the economy, Florida’s housing market continues to grow. With median housing prices on the rise and listings moving fast, a buyer’s market provides plenty of opportunity for Florida real estate agents and brokers.

When selling a home, you take note of every feature that makes it unique. This same mentality can be used to evaluate your business insurance needs. Your individual risk and key business factors determine the policies that will best protect your realty business.

Will your business move into a commercial property? Most leasing agreements stipulate proof of general liability insurance and/or commercial property insurance. Florida state law requires all small businesses with four or more employees to carry workers’ compensation insurance. While state law does not mandate that real estate agents and brokers carry professional liability insurance, you may be asked to show proof of coverage by potential clients. Also called errors and omissions or real estate liability insurance, this policy would potentially protect your company in the event a business discrepancy results in a lawsuit.

Insureon makes shopping for insurance easy with industry-leading technology that gathers quotes from top U.S. carriers that fit your needs. Read more to find out which policies are most common for real estate agents and brokers in Florida and start an application to get your free quotes today.

Find the right insurance policy for your realty business

The most common policies for real estate agents and brokers vary depending on a number of factors, including revenue, client contracts, and partnerships. The table below illustrates which policies might work best for your business type.

 

Business type General liability / BOP Professional liability Workers' comp
1099 or independent contractor X X  
Business owner with employees X X X
Solo business owner X X  

 

General liability insurance: General liability insurance is the foundation of a real estate agent or broker’s business protection with coverage that extends to bodily injury, client property damage, advertising injury, and the cost of legal defense. Most commercial leases require you to have this coverage.

Professional liability insurance: Many clients require proof of professional liability insurance before entering contracts for professional services. This policy, also called errors and omissions insurance or real estate liability insurance, can help cover legal expenses if you’re sued for unsatisfactory work or a business discrepancy.

Business owner's policy (BOP): Real estate agents and brokers sometimes qualify for a business owner’s policy. This package helps your business save money by bundling commercial property insurance with general liability at an affordable rate.

Commercial auto insurance: Commercial auto insurance can cover vehicles your business owns or uses for business purposes. If your vehicle is involved in an accident, this policy can cover your liability for the other person's bodily injuries and property damage. It can also pay to repair your car when it is damaged by theft, weather events, or vandalism.

Cyber liability insurance: Cyber liability insurance helps real estate agents and brokers survive data breaches and cyberattacks by helping to cover recovery expenses. You may need this policy if you handle sensitive data such as credit card numbers, passwords, or Social Security numbers.

Florida workers' compensation insurance: Florida state law requires small businesses outside of the construction industry that employ four or more workers to carry workers’ compensation insurance. Sole proprietors and independent contractors are exempted by state law, but can elect for coverage if they choose. While the real estate industry is competitive, it is not particularly dangerous. However, workplace injuries do occur. Real estate agents and brokers are at particular risk for injuries resulting from contact with equipment and trips, slips, and falls, according to data from the Bureau of Labor Statistics.

Business insurance costs for real estate agents in Florida   

Despite Florida’s sunny business climate and relatively low cost of living, median insurance costs for real estate agents trend slightly higher than the national median, according to an analysis of Insureon applications. While general liability insurance is slightly higher than the national median, the cost of a BOP is notably lower. If your agency requires commercial space, a BOP can bundle commercial property and general liability at a significant discount. In all, a Florida real estate agent can expect to spend around $250 per month on business insurance to secure their company.

Median Insurance Costs for Florida Real Estate Agents

Save time and money with Insureon

Insureon’s industry-leading technology helps real estate agents and brokers in Florida save time and money shopping for insurance by comparing policies from dozens of top U.S. carriers. Simply apply online and review quotes for the policies that best fit your business needs. Our insurance specialists are licensed in Florida and can answer your questions as you consider coverage.

To make the application go even 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 insurance quotes today.