Active license to E&O insurance: the complete setup workflow.
E&O insurance confuses a lot of new agents, TREC doesn't require it of you directly the way it does for inspectors and some brokerages. Here's how it actually works.
What TREC actually requires, and what it doesn't
TREC requires a filed Certificate of Insurance from licensed real estate inspectors, and from a business-entity broker where the designated broker doesn't own at least 10% of the entity, $1 million per occurrence in that case. Nothing in TREC's published rules mandates individual sales agents or individual brokers to personally carry E&O insurance. In practice, this usually gets handled at the brokerage level.
From active license to real coverage.
E&O coverage is generally arranged around your affiliation with a sponsoring brokerage, not on its own.
TREC doesn't require individual sales agents to personally carry E&O insurance the way it requires it for certain business-entity brokers and licensed inspectors. Most Texas brokerages carry a firm-level policy that covers their sponsored agents, confirm this in writing rather than assuming.
Professional liability for mistakes, omissions, or alleged negligence in a real estate transaction, separate from general liability or health insurance.
Independent E&O policies are available through insurers that specialize in real estate professional liability. Compare coverage limits and exclusions, not just price.
If you're ever part of a business-entity broker arrangement, TREC requires proof of E&O to be filed directly with it using TREC's own Certificate of Insurance form. Individual agents should still keep their own proof on hand even when it isn't filed with TREC.
E&O renews on its own annual policy cycle, which may not line up with your 2-year TREC license renewal. Track both on their own schedules.
Not licensed yet?
E&O coverage only becomes relevant once you have an active license and a sponsoring broker. See School Estate's Success Pack pricing to start your licensing path.
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