How Liability Insurance for Real Estate Agents Can Help You

When you’re a real estate agent, there’s always something on your to-do list. If it’s not a showing it’s meeting with clients or finding leads. And with so much going on at any given time, it’s easy to forget about taking out an insurance policy that’s been designed for real estate agents.

That only makes sense, doesn’t it?

After all, for most Canadians, their homes are likely to be the most expensive items that they will ever own. And going past the dollars and cents for a moment, a house isn’t just any other purchase for a lot of your buyers. It’s the place where they plan to live their lives. Or if they’re real estate investors, it’s a property that they hope to earn money from.

Between the massive sums of money and the strong emotions tied into a home purchase, there are a lot of opportunities for liability problems to come up during a real estate transaction. 

That’s why looking into liability insurance coverage for real estate agents is a move that may be worth your while.

Insurance Coverage Types That Real Estate Agents May Benefit From 

A lot of real estate professionals don’t carry liability insurance simply because they don’t realize that they need it. If you’re affiliated with a real estate broker, you’re covered under their insurance anyway, right?

Well, here’s the thing: 

Many real estate professionals who believe themselves to be employees are actually self-employed. If that is you, then in the event that disaster strikes, you may be on your own with no insurance to cushion the blow. 

The real estate agent’s liability insurance policy makes it possible to cover your bases and ensure that you have protection during all parts of your job.

Here are 3 common types of insurance policy that may make sense for real estate agents to look into: 

1. Errors and Omissions Insurance Coverage

This is an insurance type that’s ideal for most working professionals who make a living from offering people advice based on their educated opinions. As a licensed real estate agent, it’s safe to say that you probably know a lot more about real estate than the average person. And while you probably wouldn’t dream of leading a client down the wrong path, you’d be surprised at how small oversights can snowball into major disasters.

For example, you might be showing a home that has a water piping issue that you inform the buyer about only to find out after the purchase that the house is uninhabitable due to water damage. 

And once a client decides to initiate a lawsuit, the court costs and legal fees are out of your hands. Errors and omissions insurance policy means that you may be able to defend yourself without taking on the added burden of financial stress. 

2. Commercial General Liability Insurance

This is insurance that covers personal injuries and property damage that’s associated with your property or business operations. If you own or lease the office you manage your real estate business out of, there are few images more embarrassing than a customer tripping in your office and getting injured in the process. Similarly, nobody deliberately shows a home planning for the buyer to accidentally damage a wall. 

But the fact of the matter is that accidents happen and it pays to be prepared. To that end, commercial general liability insurance is a coverage option real estate agents can benefit from carrying.

3.  Commercial Auto Insurance

Auto insurance generally isn’t the type of insurance that comes to mind when thinking about real estate and potential liability scenarios but think about it.

Real estate agents spend a lot of time on the road traveling to meet clients, show homes, and commute to and from the office. All it takes to find yourself potentially liable is a single distracting phone call or a quick glance up from your steering wheel and before you know it, you’re on the hook for hundreds or even thousands of dollars.

Plus to add insult to injury, personal insurance may not cover you over the course of doing business. That’s where commercial or small business auto insurance has the potential to be a lifesaver for a real estate agent. 

Why Use an Insurance Broker?

1. Access to Great Insurance Plans

As an individual buyer, you can definitely take it upon yourself to find liability insurance for real estate agents that works. But it’s not easy to find the time to carefully examine and evaluate every option when you’ve got houses to show and buyers to see. 

The beauty of working with an insurance broker is that you don’t have to shoulder that type of responsibility. An insurance broker will have access to policy issuers who may be able to offer you plans and rates that you didn’t realize you could get. 

2. Guidance From an Experienced Professional

You wouldn’t expect a random person off the street to know and understand the real estate market better than you do. And the same applies for insurance. At the end of the day, getting your dream insurance plan often requires a certain amount of planning and insight. Real estate is a unique industry with its own areas of potential liability exposure. With the help of an experienced professional, it can be easier and faster to put together a comprehensive plan that makes sense for your needs. 


As a real estate agent, you put a lot of time and effort into selling houses and doing what you can to get buyers into their next homes. While happy buyers and contented sellers don’t necessarily leave most people thinking, “This could use some insurance”, there’s something to be said for having some coverage. 

Ultimately, there is a lot of money involved in your average real estate transaction. And whether the property is being bought as a residence or as an investment, buyers have hopes and dreams for the houses they’re purchasing. As such, between the showings and the transactions, there’s a lot of potentials for things to go wrong. That’s where it can pay to explore the possibility of liability insurance for real estate agents. Get in touch with your ALIGNED insurance broker today!

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