Errors & Omissions Insurance For Real Estate Licensees

The Department of Business Regulation requires all real estate licensees to provide proof of errors and omissions insurance in order to obtain or renew a broker’s or sales license.

Minimum requirements are as follows: (Effective August 15, 2009)

Individual Policy: DBR requires a Certificate of Insurance with minimum coverage of $50,000 per claim and in an aggregate amount of at least $150,000. DBR no longer requires a licensee to carry an individual policy if he or she is covered by a broker’s blanket and errors and omissions insurance policy.

Principal broker's blanket policy for his or her licensees: 

• The minimum requirement are $50,000 per claim multiplied by the number of individual licensees affiliated with the principal broker, and in an aggregate amount of at least $150,000 multiplied by the number of individual licensees employed by or associated with the principal broker OR
• A minimum of $300,000 for each claim with an aggregate maximum limit of liability for all claims of at least $1,000,000 during any one year.

DBR is not requiring existing licensees to send documentation of compliance to DBR at this time. However, licensees may be randomly audited by DBR. Contact the DBR Real Estate Division at (401) 462-9506 if you have any questions about this insurance requirement.

As a convenience, RIAR has compiled a partial list of insurance carriers who provide this type of coverage. RIAR does not recommend or endorse any of these carriers. For details about coverage and rates, contact your insurance agent or these carriers directly.