Joining a brokerage does not automatically mean you are fully insured, and assuming it does is one of the most common and costly mistakes agents make. Two separate questions matter: what the brokerage requires you to carry, and what the brokerage’s own policy actually does for you. They are not the same, and the gap between them is where agents get caught.
What brokerages usually require
Many brokerages require affiliated agents to carry their own E&O as a condition of affiliation, and some states require licensees to carry it regardless. If you are joining or changing firms, expect to show proof of coverage at a stated limit. That requirement exists precisely because the brokerage’s policy is not meant to be your only protection.
What the brokerage policy does, and doesn’t, do
The brokerage’s E&O is written to protect the brokerage. For an individual agent, coverage of your activity varies by policy: brokerage-sanctioned transactions are typically covered, while outside business, referral arrangements, prior acts, and certain disputes may fall outside it. The label brokerage coverage hides a lot of variation, which is why the scope, not the existence, of the policy is what matters.
What to confirm
Get specifics on four points: whether the brokerage requires your own E&O and at what limit, what its policy covers for your individual activity, how prior acts are treated if you leave, and whether your outside activities are in or out of scope. Assurances are not answers; the policy language and the affiliation agreement are.
Why your own policy still matters
When you leave a brokerage, its claims-made policy generally will not cover your past work. Carrying your own E&O with continuous prior acts protects your history independent of any single firm, which is the whole point of insuring yourself rather than renting coverage. A coverage review reconciles what the brokerage provides with what you actually need.