What's the difference between E&O insurance and general liability insurance?

E&O insurance covers mistakes or omissions in your licensed real estate activity, like a disclosure error or bad advice. General liability covers physical incidents, like someone getting hurt during a showing. As a referral-only agent, E&O is the more relevant of the two since you're not hosting showings yourself.

Will my brokerage cancel my E&O coverage if I stop actively selling?

Not automatically, but it depends on the brokerage. Many referral programs keep E&O coverage in place for as long as your license is active there, since the requirement is usually tied to holding a license rather than to production volume. Confirm this directly with the brokerage.

Does E&O cover disputes over a referral fee itself?

Not typically. E&O is designed for claims related to real estate practice, not for disagreements over whether a referral fee was earned or paid correctly. Fee disputes are usually handled through the referral agreement between brokerages, not an insurance claim.

Is E&O insurance required by Florida law or just by brokerages?

Requirements vary; some brokerages mandate it as a condition of holding a license there, separate from any statewide mandate for every licensee. Because this can differ, confirm directly with the brokerage holding your license rather than assuming a blanket state requirement.

Do You Need Errors and Omissions Insurance as a Referral-Only Agent?

Updated July 2026 · Reviewed by Adams, Cameron & Co.

Quick answer

Yes, in most cases: referral-only agents in Florida typically still need errors and omissions (E&O) insurance, since the requirement is usually attached to holding an active real estate license rather than to actively listing or selling. The practical risk is lower than for a transacting agent, but coverage details, and who pays for it, vary by brokerage, so it’s worth confirming directly rather than assuming either way.

Key takeaways

Referral-only agents typically still need E&O insurance, since the requirement is usually tied to holding an active license, not to actively selling.
E&O covers professional mistakes and omissions in licensed activity; it doesn’t cover physical accidents, which fall under general liability instead.
The practical risk is much lower for a referral-only agent than an actively-transacting one, but it isn’t zero.
Some brokerages bundle E&O coverage into referral-program fees; others bill it separately at a lower premium than an active-production policy.
Confirm the specific requirement and cost directly with the brokerage holding your license rather than assuming either way.

What does E&O insurance actually cover?

Errors and omissions (E&O) insurance protects a licensed real estate professional against claims of negligence, mistakes, or omissions made in the course of licensed activity, things like a missed disclosure, a paperwork error, or a client alleging bad advice. It doesn’t cover general accidents (a bodily injury during a showing, for example); that falls under general liability insurance instead.

Does E&O apply if you’re not actively selling?

Yes, in most cases. Because a referral-only agent still holds an active Florida real estate license, the coverage requirement tied to that license typically still applies. Florida law and most brokerages require active licensees to carry E&O coverage regardless of whether they’re listing homes, showing property, or simply referring clients to other agents.

Is the practical risk still the same?

No. The risk profile for a referral-only agent is much lower than for someone actively negotiating contracts, disclosing property conditions, or guiding a buyer through closing. A referral agent’s main licensed activity is connecting a client with an active agent, so there’s far less exposure to transaction-level mistakes. Lower risk doesn’t mean zero risk, though; a referral itself can still become the subject of a dispute, for example over who is owed a fee.

Who pays for it?

This varies by brokerage. Some referral companies include E&O coverage as part of the fees or dues an agent already pays to keep their license there; others bill it separately, often at a smaller annual premium than an active-production policy since the risk is lower. Before joining any referral program, ask directly whether coverage is included, what it costs if not, and what it actually covers for a referral-only license.

What should you confirm before assuming either way?

Don’t assume you’re automatically covered, and don’t assume you’re exempt just because you’re not actively transacting. Ask the brokerage holding your license for the specifics in writing: whether E&O is mandatory, whether it’s bundled into your fees, and what it costs if it’s billed separately. Requirements can shift over time, so it’s worth reconfirming periodically rather than relying on what you were told when you first signed on.

Keep your license protected, not just active.

Adams, Cameron & Co., the area’s largest brokerage since 1963, runs a Realty Referral Program that keeps your Florida license active, tells you plainly what coverage is required, and lets you keep earning on your network without the demands of active sales. Start a conversation to see how it works for your situation.

Insurance requirements and costs vary by brokerage and change over time; confirm current details directly with the brokerage holding your license. Educational only, not legal or insurance advice.

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