Business Insurance Requirements for Real Estate Professionals in Pennsylvania

Reflecting the overall strength of the U.S. economy, Pennsylvania displays steadily rising home prices and a strong seller’s market. Both real estate agents and brokers work hard to keep pace with the demand of the housing market. However, choosing insurance to protect your small business doesn’t have to be demanding.

While you can’t insure yourself against market trends, you can protect yourself from other unexpected hardships. When choosing the policies to best secure your business, consider your individual risks and the key factors that define your business. Will your company require commercial space? Most leasing agreements require proof of general liability insurance and/or commercial property insurance. Potential clients may ask you to show proof of professional liability insurance. Also called errors and omissions or real estate agent liability insurance, this policy can potentially cover the costs of a lawsuit brought as a result of a business discrepancy. Pennsylvania state law requires all small businesses with one or more employees to carry workers’ compensation insurance. Sole proprietors can choose to purchase workers’ comp for themselves, but it isn’t required.

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 professionals in Pennsylvania, 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 any real estate professional’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 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.

Cyber liability insurance: Cyber liability insurance helps real estate brokers and agents survive data breaches and cyberattacks by helping to 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.

Pennsylvania workers' compensation insurance: Pennsylvania state law requires all small businesses with one or more workers to carry a workers’ compensation policy. Sole proprietors can elect for coverage. Coverage can be purchased through Pennsylvania’s competitive state fund or through a private insurer. While real estate professionals face a lower risk of workplace injury than the national average, injuries do happen. If an employee is injured on the job, workers’ comp can help pay for medical fees and lost wages. Most commonly, employees in the real estate industry experienced workplace injuries resulting from contact with equipment or falls, slips, and trips, according to data from the U.S. Bureau of Labor Statistics.

Business insurance costs for real estate professionals in Pennsylvania

Pennsylvania real estate agents and brokers can expect their business insurance costs to trend lower than the national median, according to an analysis of Insureon applications. The most significant discount is for a general liability policy. General liability is the bedrock of a real estate professional’s comprehensive insurance plan; in Pennsylvania, it costs about $150 per year less than the national median. Errors and omissions, typically the most costly policy for the real estate industry, also trends lower in Pennsylvania than in other states. It may be tempting to go without this policy, which is not required under state law. However, any short-term savings could evaporate if you face a lawsuit without the protection of a policy. Legal costs for errors and omissions suits against real estate agents can start at a few thousand dollars and range far higher. In all, real estate professionals in Pennsylvania can expect to spend less than $200 per month to secure their small business.

Median Insurance Costs for Pennsylvania Real Estate Agents

Save time and money with Insureon

Insureon’s industry-leading technology helps real estate professionals in Pennsylvania 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 Pennsylvania 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 or broker insurance quotes today.