If you're a real estate agent, you know that your business involves constant movement—meeting clients at properties, hosting open houses, managing office space, and coordinating with dozens of professionals. With all that activity comes risk. What happens if a potential buyer trips during a home tour? What if your laptop with sensitive client data gets stolen? A Business Owners Policy (BOP) is designed to handle these everyday risks without the hassle and expense of juggling multiple insurance policies.
Here's the thing that surprises most agents: a BOP isn't just about protection—it's about savings. By bundling general liability and commercial property insurance into one policy, you typically save 10-15% compared to buying each separately. For real estate agents, that means comprehensive coverage at a price that makes sense for your business.
What's Actually Included in a BOP
A Business Owners Policy combines three core coverages that real estate professionals need most. Think of it as your foundational protection—it won't cover everything, but it handles the most common risks you face.
General liability insurance protects you when someone gets hurt or their property gets damaged because of your business operations. Real estate agents work with the public constantly, which means more exposure to these risks. Your BOP covers third-party lawsuits related to physical injuries—like a client slipping on a wet floor during an office visit—and property damage, such as accidentally breaking a valuable antique while staging a home. It also includes personal and advertising injury coverage, which handles claims like libel, slander, or copyright infringement in your marketing materials.
Commercial property insurance covers your business property—your office space, furniture, computers, signage, and any inventory you maintain. Whether you rent or own your office, this coverage protects against covered perils like fire, theft, vandalism, and weather damage. If a burst pipe floods your office and ruins your computers and files, commercial property coverage helps you replace them.
Business interruption coverage (also called business income coverage) is the third component, and it's automatically included in most BOPs. This is your safety net if a covered event forces you to temporarily close. If your office becomes unusable after a fire, business interruption coverage reimburses your lost income and helps pay ongoing expenses like rent and utilities while you're getting back on your feet.
When a BOP Makes Sense for Real Estate Agents
Not every real estate professional needs a BOP, but it's particularly well-suited for solo agents and small brokerages. Insurance companies design BOPs for small businesses, which typically means businesses with fewer than 100 employees and under $10 million in annual revenue. If you're running an independent agency or a small team, you likely fit this profile perfectly.
A BOP makes the most sense when you have business property to protect and regular interaction with clients. If you maintain an office—even a small one—where you meet clients, store equipment, or keep records, you need commercial property coverage. And if clients visit your office or you tour properties with them, general liability protection is essential. The BOP bundles these needs together efficiently.
For real estate agents specifically, BOP coverage costs between $60-$91 per month depending on your state, with Alaska on the lower end and New York on the higher end. That's well below the small business average of $147 per month. The cost reflects your relatively low-risk profile compared to industries with more physical hazards.
The savings really add up when you compare a BOP to purchasing policies separately. Buying general liability and commercial property insurance individually would cost more—carriers typically discount BOPs by 10-15% because bundling reduces their administrative costs and your overall risk profile. For a real estate agent paying around $75 per month for a BOP, you're likely saving $10-15 monthly compared to separate policies.
What a BOP Doesn't Cover
This is where agents sometimes get confused. A BOP handles physical risks—injuries, property damage, business interruption. But it doesn't cover professional mistakes or advice. That's where errors and omissions insurance (E&O), also called professional liability insurance, comes in.
E&O insurance protects you when a client claims you made a professional error that cost them money. Examples include missing a property defect disclosure, providing incorrect information about zoning regulations, or failing to communicate an offer properly. These aren't physical accidents—they're professional mistakes. A BOP won't help with these claims, which is why most real estate professionals carry both a BOP and E&O coverage.
In fact, some states legally require real estate professionals to carry E&O insurance. Even where it's not mandatory, many brokerages require their agents to maintain it, and lenders or clients often request proof of coverage before doing business with you. E&O typically costs around $59 per month for real estate agents, so budget for this alongside your BOP if you want complete protection.
A BOP also typically excludes commercial auto coverage. If you drive your personal vehicle for business purposes—like taking clients to showings—your personal auto policy might not fully cover business use. You may need to add commercial auto insurance or at minimum, verify your personal policy covers business activities. Some agents bundle all three coverages (BOP, E&O, and commercial auto) into a comprehensive package, which can save an additional 16-24% compared to buying each separately.
Understanding Revenue and Coverage Limits
BOPs come with eligibility requirements that affect whether you qualify. Most insurance carriers limit BOPs to businesses with annual revenue under $5-10 million and fewer than 100 employees. For the majority of real estate agents and small brokerages, this isn't a problem—you're well within these limits.
Coverage limits matter too. A standard BOP for real estate agents typically includes $1 million per occurrence and $2 million aggregate for general liability, with a $500 deductible. This means the policy pays up to $1 million for any single claim and up to $2 million total during the policy period. For commercial property, you'll choose coverage limits based on the value of your office contents and equipment—make sure you have enough coverage to replace everything if needed.
If your business grows beyond BOP eligibility limits, you'll need to transition to separate commercial general liability and commercial property policies. Larger brokerages with multiple locations and dozens of agents typically need customized commercial insurance rather than a standardized BOP.
How to Get Started with BOP Coverage
Getting a BOP is straightforward. Start by gathering basic information about your business: your annual revenue, number of employees, office location and square footage, and the approximate value of your business property. Insurers will also ask about your claims history and specific business activities.
Shop around and compare quotes from multiple carriers. Prices can vary significantly between insurers even for identical coverage. Many insurance companies now offer online quotes specifically for real estate professionals, making it easy to compare options quickly. Look for carriers that specialize in small business insurance or have specific real estate agent programs—they'll better understand your unique needs.
Consider bundling additional coverages alongside your BOP. As mentioned earlier, E&O insurance is essential for real estate agents, and adding it to your BOP can unlock additional discounts. If you drive regularly for business, commercial auto coverage should be part of the conversation too. Some carriers offer complete packages designed specifically for real estate professionals that bundle everything you need at a discounted rate.
A Business Owners Policy gives you solid foundational coverage at a price that makes sense for your real estate business. It handles the everyday physical risks you face while saving you money compared to separate policies. Just remember to pair it with errors and omissions coverage for complete protection—your BOP covers the physical accidents, but E&O protects your professional reputation and finances when advice or services are questioned. Get quotes today to see how affordable comprehensive coverage can be for your real estate business.
