Where E&O insurance is actually required by law

Every active Colorado real estate broker must carry errors and omissions insurance as a condition of active licensure. The Division of Real Estate contracts for a group policy licensees can buy into, and independent policies are allowed when they meet the division's minimum terms.

If coverage lapses: A license cannot be issued or renewed in active status without proof of coverage, and lapsed coverage inactivates the license.

Regulator: Colorado Division of Real Estate

Idaho requires every active real estate licensee to carry errors and omissions insurance. The Idaho Real Estate Commission certifies a group policy and sets the minimum terms an independently purchased policy must meet.

If coverage lapses: Licensees without qualifying coverage cannot hold an active license, and the commission audits proof of independent coverage.

Regulator: Idaho Real Estate Commission

Iowa makes errors and omissions insurance a condition of licensure for all active real estate licensees. The Iowa Real Estate Commission contracts for a group policy by competitive bid, and licensees may instead buy independent coverage that meets the commission's minimum terms.

If coverage lapses: Failure to carry coverage or to submit proof on request is grounds for denial of licensure or renewal, or suspension or revocation of the license.

Regulator: Iowa Real Estate Commission

Kentucky's license law makes errors and omissions insurance mandatory for all active real estate licensees. The Kentucky Real Estate Commission makes a group policy available and sets the minimum terms for independently obtained coverage.

If coverage lapses: Licensees who fail to maintain the required coverage cannot keep an active license.

Regulator: Kentucky Real Estate Commission

Louisiana mandates errors and omissions insurance for all active real estate licensees. The Louisiana Real Estate Commission contracts a group policy after competitive bidding, and licensees may buy independent coverage that meets the commission's minimum requirements.

If coverage lapses: Active licensure is conditioned on coverage; licensees electing independent coverage must file verification with the commission.

Regulator: Louisiana Real Estate Commission

Mississippi requires active real estate licensees to carry errors and omissions insurance under the state license law. The Mississippi Real Estate Commission administers a group policy option and sets minimum terms for independent policies.

If coverage lapses: Coverage is a condition of active licensure; a lapse leaves the license unable to remain active.

Regulator: Mississippi Real Estate Commission

Nebraska's license act requires all active real estate licensees to maintain errors and omissions insurance. The Nebraska Real Estate Commission arranges a group policy and publishes the minimum terms independent policies must meet.

If coverage lapses: Licensees must certify coverage; operating on an active license without it is a license-law violation.

Regulator: Nebraska Real Estate Commission

Every active New Mexico real estate broker must have errors and omissions insurance in effect. The New Mexico Real Estate Commission contracts a group policy, and independent coverage is allowed when it meets the commission's rule minimums.

Minimum limits: At least $100,000 per covered claim under the commission's group-policy rule (16.61.5 NMAC)

If coverage lapses: Coverage is a condition of holding an active broker's license.

Regulator: New Mexico Real Estate Commission

North Dakota requires all active real estate licensees to be covered by errors and omissions insurance before an active license is issued, purchased by the licensee or the firm. The commission's administrative rules set the coverage terms.

If coverage lapses: Proof of coverage must be on file with the commission before an active license is issued or renewed.

Regulator: North Dakota Real Estate Commission

Rhode Island's license law requires active real estate licensees to carry errors and omissions insurance, with a group policy made available and independent coverage permitted when it meets the state's minimum requirements.

If coverage lapses: Coverage is a condition of active licensure and renewal.

Regulator: Rhode Island Department of Business Regulation, Real Estate section

South Dakota requires active real estate licensees to carry errors and omissions insurance under the license law, with a commission-arranged group policy and an independent-coverage option meeting the commission's terms.

If coverage lapses: Licenses cannot be issued or renewed in active status without proof of qualifying coverage.

Regulator: South Dakota Real Estate Commission

Tennessee makes errors and omissions insurance a condition of active real estate licensure. The Tennessee Real Estate Commission maintains a group policy option, and a license is suspended when required coverage lapses until proof of coverage is restored.

If coverage lapses: A licensee whose coverage lapses faces suspension, and revocation follows continued noncompliance.

Regulator: Tennessee Real Estate Commission

Since 2018, Idaho attorneys engaged in the private practice of law must certify proof of professional liability (malpractice) coverage to the Idaho State Bar as a condition of active licensure, one of the very few states with a lawyer insurance mandate.

If coverage lapses: Failure to certify coverage during annual licensing blocks the active license renewal.

Regulator: Idaho State Bar

Oregon is the longest-standing lawyer malpractice insurance mandate in the country: every Oregon State Bar licensee in the private practice of law with a principal office in Oregon must carry coverage through the bar's Professional Liability Fund (PLF). Coverage limits and assessments are set by the PLF's primary coverage plan each year.

If coverage lapses: PLF participation is a bar licensing requirement; practicing privately without paying the assessment or qualifying for an exemption violates licensing rules.

Regulator: Oregon State Bar Professional Liability Fund