Business Insurance Requirements for Real Estate Agents in New York

As New York’s unemployment rate continues to plummet, median sales prices of homes are rising with demand outpacing the supply both in New York City’s surroundings and in upstate areas. A strong seller’s market means plenty of opportunities for professionals in the real estate industry – and plenty of stress. However, choosing insurance for your small business doesn’t have to be stressful.

The key to finding the insurance that will best secure your small business is to consider your individual risk and the defining characteristics of your company. Will your business move into a commercial space? Most leasing agreements stipulate proof of general liability and/or commercial property insurance. You may also be asked to show proof of professional liability insurance. Also called errors and omissions or liability insurance, this policy can protect against the cost of a lawsuit brought against you as a result of a business discrepancy. New York does not require real estate agents to carry this policy. However, state law does require nearly all small businesses to carry workers’ compensation insurance.

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 in New York, 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 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. Coverage 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 agent 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 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.

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

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.

New York workers' compensation insurance: New York state law requires nearly all small businesses with employees to carry workers’ compensation insurance. Sole proprietors can choose whether or not they want this type of coverage. If an employee is injured on the job, workers’ comp can help pay for medical fees and lost wages. While professionals in the real estate industry face a lower risk of workplace injury than the national average, injuries do occur. When real estate agents and brokers are injured at work, the cause is most often a fall, slip, or trip, or harm resulting from contact with equipment, according to data from the U.S. Bureau of Labor Statistics.

Business insurance costs for real estate agents in New York

In New York, real estate agent business insurance costs are generally lower than the national median, according to an analysis of Insureon applications. As general liability policies trend higher in New York state, it may make sense for real estate agents to consider a business owner’s policy, which bundles general liability and commercial property insurance for a discount. In New York, the cost of errors and omissions coverage is lower than the national rate, although it’s typically the most expensive policy for real estate agents. It may be tempting to go without this policy, considering it’s not a requirement in New York. However, in the event of an errors and omissions suit against a real estate agent, the legal costs can range up to six figures. Overall, real estate agents and brokers in New York can expect to spend around $200 per month to secure their small business.

Median Insurance Costs for New York Real Estate Agents

Save time and money with Insureon

Insureon’s industry-leading technology helps real estate agents and brokers in New York 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 New York 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 and broker insurance quotes today.