Massachusetts Real Estate Firm Insurance

Independent insurance agents can help you find the best and most affordable coverage for your firm.

Written by Meg Stefanac
Written by Meg Stefanac

Financial blogger and business owner, Meg Stefanac, has more than 15 years experience working in the financial services industry and enjoys helping individuals make solid financial decisions. Meg has extensive experience writing about insurance and finances and is a key contributor to

Reviewer: Jeffrey Green Reviewed by Jeffrey Green
Reviewer: Jeffrey Green
Reviewed by Jeffrey Green

Jeff Green has held a variety of sales and management roles at life insurance companies, Wall street firms, and distribution organizations over his 40-year career.  He was previously Finra 7,24,66 registered and held life insurance licenses in multiple states. He is a graduate of Stony Brook University.

Massachusetts Real Estate Firm Insurance

The real estate market in Massachusetts is thriving. There are approximately 18,000 licensed real estate agents and brokers working in the state. While these agents are typically considered independent contractors, most work as representatives of a real estate firm.  

If you own a real estate agency in Massachusetts, you can shield your business from large financial losses by investing in comprehensive real estate firm insurance. A local independent insurance agent can make finding the best and most affordable coverage easy.

What Could Go Wrong at a Real Estate Firm?

As with any business, real estate firms have potential risks that can prove quite costly. For instance, consider how your agency would handle the financial costs associated with the following scenarios if it were uninsured.

  • A client comes to your office to sign paperwork and is severely injured after slipping on ice in your parking lot.
  • One of your agents is driving clients around to show houses and gets into a vehicular accident.
  • Your agency’s office is significantly damaged by heavy winds brought on by a hurricane.
  • Cybercriminals access your company’s database and steal customer information including names, social security numbers, and financial data.

These are just a few of the many things that can go wrong. Having the right insurance in place ahead of time can help your business avoid large financial pitfalls.

What Is Massachusetts Real Estate Firm Insurance?

Real estate firm insurance is a general term used to refer to a business owner policy (BOP) or business insurance policy package that has been customized to meet the specific coverage needs of a real estate agency or brokerage.

How Much Does Real Estate Firm Insurance Cost in Massachusetts?

The average price for real estate firm insurance is about $400 a year. However, rates can vary from one organization to another because they are based on several factors.

  • The size of your business and its expected annual revenues
  • The value of your company-owned assets
  • Whether your firm owns and manages rental properties in addition to brokering the sale of homes
  • The number of people you employ and the jobs they do
  • Whether your firm has any company-owned vehicles
  • The types and amount of coverage you want to purchase
  • Your real estate firm’s insurance claims history

The only way to find out how much a policy will cost for your business is by requesting customized quotes from a few competing providers. Independent insurance agents can save you time and money by doing the comparison shopping for you.


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What Does Real Estate Firm Insurance Cover?

Business insurance policy packages are fully customizable, so your real estate firm insurance can cover as much or as little as you want it to. An independent agent can advise you about which policies are a good fit for your firm.

Examples of some of the policies your agent may recommend include the following.

  • Commercial property insurance: This is designed to cover your business-owned property if it is lost or damaged by a covered event like theft, fire, or severe weather.
  • Commercial general liability insurance: This is designed to cover legal defense fees, court costs, settlements, judgments, arbitration fees, and other costs associated with liability lawsuits if your firm is sued for a covered event such as if a client is injured while in your offices or if a competing agency sues your business for libel or slander.
  • Commercial vehicle insurance: This is necessary only if your real estate firm owns and operates motor vehicles, such as if you have a company car that your agents can use when showing houses.
  • Non-owner car insurance: This can cover your firm’s potential liabilities if one of your agents causes a collision while driving their own vehicle for work purposes.
  • Errors and omissions insurance: This can cover your agents, brokers, and appraisers if they are sued by a client for errors in judgment or other professional mistakes that result in financial losses or other damages.
  • Workers’ compensation insurance: In Massachusetts, you are not required to purchase workers’ compensation insurance for real estate agents who work entirely on commission, but you will need to carry it if you have other employees such as office workers and accountants.
  • Cyber liability insurance: This can cover your firm’s liabilities if hackers break into its computer system and access sensitive customer data such as personal and financial information.

There are more policies and coverage options that may be a good fit for your Massachusetts real estate firm. A local independent agent can identify your firm’s potential risks and can recommend the appropriate policies to cover against each of them.

How an Independent Insurance Agent Can Help You Find the Best Coverage

When you are looking for the best insurance coverage for your Massachusetts real estate firm, a local independent agent can help. These agents can do a complete risk assessment of your business and can recommend appropriate, and affordable policies to ensure that your firm is fully covered.

There are nearly 1,300 independent agents in Massachusetts so it should be easy to find an agent with an office near you. Arrange a one-on-one consultation with an experienced insurance agent to learn more.

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