Key Points
- Errors and Omissions Insurance (E&O insurance) protects real estate agents from lawsuits.
- eXp Realty charges only $60 per transaction for E&O insurance and caps this fee at $750 annually.
- Unlike many real estate brokerages, eXp Realty’s E&O deductible is a very low $2,500.
- eXp Realty agents benefit from per-transaction E&O fees, not hefty upfront annual costs or monthly payments.
- eXp leveraged its size and profitability to negotiate lower insurance premiums and deductibles for its agents.
Real estate deals are exciting—but they’re also loaded with details, deadlines, and legal documents that can keep even the most seasoned real estate agents on their toes. One missed disclosure, a misunderstood contract, or an unhappy client can quickly turn into a costly legal headache. That’s where errors and omissions insurance steps in. Whether you call it E&O insurance, E & O insurance, or professional liability coverage, it’s a must-have for every real estate professional.
At its core, errors and omissions insurance protects you if a client claims you made a mistake, overlooked something important, or didn’t deliver the service they expected. It covers your legal defense costs—and potential settlements—so you’re not digging into your commissions to handle lawsuits. Whether you’re an agent at a traditional brokerage or part of a modern virtual real estate brokerage like eXp Realty, this coverage isn’t optional—it’s essential.
And speaking of eXp Realty, here’s where they make things easy. At eXp Realty, E&O insurance for real estate agents is seamlessly built into their transaction system. You’ll pay a low per-transaction fee until you hit your cap (more on that later), giving you peace of mind without hefty upfront costs. No need to search endlessly for cheap E&O insurance for real estate agents—at eXp, it’s handled for you.
If you’re wondering how errors and omissions insurance works, how much errors and omissions insurance costs, and why eXp Realty is the best real estate brokerage for new agents looking for simplicity and protection, you’re in the right place. Let’s break it down—without the legal jargon. Here’s your handy dandy index:
Table of Contents
Why Real Estate Agents Need Errors and Omissions Insurance
When you’re working in real estate—whether you’re with a traditional brokerage or a cutting-edge virtual real estate brokerage like eXp Realty—there’s one universal truth: mistakes (or even the perception of mistakes) can be expensive. Real estate transactions often involve hundreds of thousands, if not millions of dollars. And when that kind of money is on the line, even the most honest real estate agents can find themselves facing legal claims.
That’s why errors and omissions insurance is non-negotiable. Whether it’s an unintentional oversight, a miscommunication, or a misunderstanding about a property, clients can and do file lawsuits. Sometimes it’s justified, and sometimes it’s not. Either way, E&O insurance for real estate agents is there to cover your legal defense costs, settlements, and other related expenses—so you’re not risking your business or your bank account.  According to the National Association of Realtors, E&O insurance is essential for protecting agents against claims of inadequate work or negligent actions.
But it’s not just about protecting yourself. Errors and omissions insurance also shield your brokerage from the financial fallout of potential lawsuits. Brokerages and their agents are often jointly liable in claims, which is why most brokerages—including top real estate brokerages in the USA like eXp Realty—require this kind of coverage.
How Brokerages Charge for Errors and Omissions Insurance
When it comes to errors and omissions insurance, how a real estate brokerage charges you can make a huge difference in your bottom line. Some brokerages offer flexibility, while others demand hefty upfront payments—whether you’re closing deals or not. Understanding these different fee structures is key to finding the right fit for your business and protecting your cash flow.
Upfront Annual Fees (Before You Even Close a Deal)
Some real estate brokerages, including big names like Sotheby’s and Compass, charge agents an upfront annual fee for E&O insurance. And we’re not talking pocket change. In places like Marin County, CA, agents can expect to pay $2,200—or more—just to get started. That’s due the day you sign up to work there before you even close your first deal. For many agents, that’s a big financial hurdle. So while these firms might have name recognition, the errors and omissions insurance cost can be steep from day one.
Monthly E&O Fees (Whether You’re Selling or Not)
Other brokerages spread out the cost with monthly E&O insurance fees. That can feel easier to manage—until you realize you’re on the hook for payments whether you’re closing deals or not. Some real estate brokerages, including certain Keller Williams and Coldwell Banker offices, charge anywhere from $300 to $350 per month. That’s $3,600 or more per year—just to have errors and omissions insurance in place, even if you’re not making sales.
Per-Transaction E&O Charges (What eXp Realty Offers)
Then there’s the per-transaction model, which is where eXp Realty really stands out. Instead of charging you upfront or every month, eXp agents only pay $60 per transaction for their errors and omissions insurance—and only when they close a deal. Even better? eXp Realty caps that fee at $750 per year —use our commission calculator to see what that could mean for your bottom line.. So, if you’re a high-producing agent, you’ll never pay more, even if you’re closing deal after deal—just one of the perks eXp agents share often. It’s part of why many consider eXp Realty the best real estate brokerage for new agents and seasoned pros alike—especially those who want to keep their overhead low while benefiting from top-tier real estate agent tools and virtual real estate brokerage support.
Don’t Forget About Deductibles—They Matter More Than You Think
Here’s something many agents overlook when they’re comparing errors and omissions insurance: the deductible. And trust us, it matters. If a client files a claim and your E&O insurance has to step in, you’re responsible for paying that deductible before your coverage kicks in.
At many traditional real estate brokerages—and especially at some 100% commission real estate brokerages—deductibles can be sky-high. We’re talking $10,000 or more! That’s a huge financial hit, and one that can catch agents completely off guard. You might save a little on monthly or transaction fees, but if something goes wrong, you’re suddenly on the hook for five figures. Ouch.
But here’s where eXp Realty shines again. Thanks to its massive size and negotiating power as one of the top real estate brokerages in the USA, eXp has secured much lower deductibles for its agents. At eXp, your deductible is capped at just $2,500. That’s significantly less than what you’ll find at other real estate brokerages, and it means more peace of mind for you—and your bank account.
So when you’re comparing E&O insurance for real estate agents, don’t just look at the upfront fees. Take a hard look at the deductible, too. If you ever need to use your errors and omissions insurance, you’ll be glad you’re with eXp Realty, where they’ve leveraged their size to give agents better protection at a fraction of the cost.
Factors That Affect Errors and Omissions Insurance Costs for Real Estate Agents
Whether you’re at a traditional brokerage or a virtual real estate brokerage like eXp Realty, it’s important to understand what drives the cost of errors and omissions insurance. If you’re shopping for coverage or comparing brokerages, knowing what impacts your E&O insurance costs can help you make a smarter choice—and keep more money in your pocket.
Here’s what every agent should know about the factors that influence E&O insurance for real estate agents:
Industry and Professional Role
Not all real estate niches carry the same level of risk—and that plays a big role in how much you’ll pay for errors and omissions insurance. For example, commercial real estate brokers tend to pay more because those transactions come with higher dollar amounts and more complex contracts, which increase the risk of legal claims. Dual agency situations also carry more exposure since you’re representing both the buyer and the seller in the same transaction. More complexity means more opportunities for misunderstandings (and lawsuits).
Good news for eXp Realty agents: unlike some real estate brokerages, eXp doesn’t charge more for E&O insurance when you act as a dual agent. That’s another way eXp Realty puts agents first, offering fair, consistent pricing no matter how you choose to structure your deals.
Business Size
The bigger the brokerage or team, the higher the potential risk—and that usually means higher errors and omissions insurance costs. More agents mean more transactions, which means more chances for things to go wrong. But here’s where eXp Realty turns the tables. As one of the largest and most successful online real estate brokerages in the world, eXp uses its size to negotiate better E&O insurance rates for every agent. So instead of higher premiums, you benefit from eXp’s bulk buying power.
Deductibles
Just like with any insurance, your E&O deductible plays a major role in the cost of your policy. A higher deductible usually means lower premiums, but it’s a tradeoff—you’ll need to have that cash ready if a legal claim is made. At many real estate brokerages, deductibles can climb as high as $10,000 (or more). At eXp Realty, the deductible is capped at $2,500, thanks to eXp’s ability to leverage its agent network for better deals. Lower deductibles mean less risk for you and more peace of mind.
Ready to Compare E&O Insurance Costs Across Brokerages?
If you’re curious how errors and omissions insurance costs stack up between eXp Realty and other top real estate brokerages in the USA, we’ve made it easy for you. Visit Smart Agent Alliance for a detailed comparison of what traditional brokerages charge for E&O insurance.
And if you’re ready to explore everything eXp Realty has to offer—from its industry-leading real estate technology, fair commission split, and low-cost E&O insurance, to the massive benefits of joining sponsor team Smart Agent Alliance—we’re here to help. Whether you’re looking for the best real estate brokerage for new agents, a scalable model for high producers, or a real path to passive income and wealth-building, eXp and Smart Agent Alliance deliver.
Our sponsor team, Smart Agent Alliance, gives you extra firepower with:
- A done-for-you and web-hosted agent attraction webpage
- Agent attraction calls hosted for you—so you earn passive income without doing the pitch
- A $10,500 social media training course with weekly meetings (yep, included)
- Weekly mastermind coaching with top producers
- Lead gen funnel, automated emails, customizable marketing tools and more
All at zero extra cost when you join our agent-obsessed team. Ready to learn more? Visit SmartAgentAlliance.com and discover why eXp Realty—in combo with Smart Agent Alliance—is the best real estate brokerage for agents who want the support, tools, and freedom to succeed.
Not sure if eXp is the right fit for you? Take this quick quiz to find out if eXp is a good match—especially if support and systems matter to you.
Curious if revenue share passive income is a big deal? Spoiler – it is. You can play with the numbers using our exp realty revenue share calculator to see how much you could earn.
Frequently Asked Questions
What is Errors and Omissions Insurance for real estate agents?
Errors and Omissions (E&O) insurance protects real estate agents from legal claims alleging mistakes, negligence, or failure to deliver professional services. It covers legal defense costs, settlements, and related expenses.
Does eXp Realty provide E&O insurance for its agents?
Yes, eXp Realty offers E&O insurance for real estate agents. Agents pay $60 per transaction, capped at $750 annually, with a deductible of $2,500 if a claim is made.
How much does E&O insurance cost at eXp Realty?
At eXp Realty, agents pay $60 per closed transaction for E&O insurance, with an annual cap of $750. This pricing structure makes it cost-effective compared to many traditional brokerages.
What is the deductible for E&O insurance at eXp Realty?
The deductible for E&O insurance at eXp Realty is $2,500—significantly lower than many brokerages, where deductibles can be $10,000 or more.
How does eXp Realty’s E&O insurance compare to other real estate brokerages?
Unlike traditional brokerages that charge upfront annual fees or high monthly premiums, eXp Realty uses a per-transaction fee capped annually. Additionally, eXp’s lower deductible makes it more affordable for agents.
Does eXp Realty charge more for E&O insurance in dual-agency situations?
No. eXp Realty does not charge additional fees for dual agency transactions, unlike some brokerages that increase E&O insurance premiums in these cases.
Where can I compare E&O insurance costs between brokerages?
You can compare E&O insurance costs at Smart Agent Alliance: https://smartagentalliance.com/best-real-estate-brokerage/traditional.
