Business Insurance Requirements for Real Estate Agents in Texas

Encompassing more than 260,000 square miles, Texas is the second largest state. For real estate agents, it’s a land of opportunity: a booming market with the nation’s leading population growth in areas like the lucrative Dallas suburbs, such as Plano and McKinney, and cities such as Austin and San Antonio, according to recent U.S. Census Bureau data. With such aggressive growth, it’s enough trying to keep pace with demand and development. You don’t want to spend too much time and energy on other tasks such as selecting business insurance for your realty agency – but you do want to make the best choice possible.

Not every real estate firm is the same; this means there is no one-size-fits-all solution to finding insurance that protects your business. Instead, it’s important to consider the key factors and individual risks that define your business. Will your business move into a commercial space? Most leasing agreements require proof of general liability and commercial property insurance. You may also be asked by potential clients to show proof of professional liability insurance. Also called errors and omissions or realty liability insurance, this policy can assist with costs if you are sued as a result of a business discrepancy. Texas state law does not require employers to carry workers’ compensation insurance. Non-subscribers are required to inform their employees and the state’s Division of Workers’ Compensation of their status.

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 businesses in Texas, and start an application to get your free quotes today.

Find the right insurance policy for your realty business

The most common policies for Texas real estate businesses 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
Sole proprietor X X X
Partner X X X
Contractor / freelancer X X X
Employer X X X

 

General liability insurance: General liability insurance is the foundation of a real estate 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 realty liability insurance, can help cover legal expenses if you’re sued for unsatisfactory work or a business discrepancy.

Business owner's policy (BOP): Realtors 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 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.

Texas workers' compensation insurance: Texas state law does not require employers to carry workers’ compensation insurance. If an employee is injured on the job, workers’ comp can help pay for medical fees and lost wages. 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. Workers in the real estate industry are less at risk for injury at the workplace than the national average. However, injuries do happen. Some of the most common workplace injuries in the real estate industry include contact with equipment along with falls, slips, and trips.

Business insurance costs for real estate firms in Texas

The favorable costs of living and doing business in Texas extend to business insurance for real estate agents, as these costs trend slightly lower than the national median, according to an analysis of Insureon applications. One significant savings is in 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. Across the United States, real estate brokers and agents missed a median 12 days of work in 2015 due to a workplace injury, according to Bureau of Labor Statistics data. In the event of a workplace injury, workers’ comp could potentially recover lost wages. Overall, a small business owner in the real estate industry in Texas can expect to spend just $195 per month to secure their business.

Median Insurance Costs for Texas Real Estate Agents

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 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 Texas 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 insurance quotes today.