What insurance do real estate attorneys need beyond malpractice?

Real estate attorneys have a broader insurance footprint than many practice areas because their work involves handling client funds, sensitive financial data, and complex transactions where errors can cause immediate, quantifiable financial harm.

Professional liability is the foundation. Real estate attorneys face malpractice exposure from title defects, survey errors, zoning compliance failures, environmental disclosure oversights, and contract drafting mistakes. Premiums are typically 20% to 40% above baseline because claim severity tends to be high — a missed easement or lien can cost a client hundreds of thousands of dollars.

Cyber liability is increasingly critical for real estate practices. Wire fraud targeting real estate closings has exploded, with the FBI reporting over $446 million in losses from business email compromise in real estate transactions in recent years. If your firm handles wire instructions, you need cyber coverage that includes social engineering fraud, funds transfer fraud, and client notification costs.

A fidelity bond or crime policy is essential if you hold client funds in escrow or trust accounts. While your malpractice policy may cover errors in managing these funds, it typically does not cover theft — whether by an employee or through a cyber attack. A fidelity bond fills this gap.

If you issue title commitments or title insurance policies, you may need separate title agent errors and omissions coverage. This is distinct from your legal malpractice policy and covers your role as a title agent specifically.

A BOP covers your office property, equipment, and general liability. Real estate attorneys who meet clients at properties should ensure their general liability extends to off-premises activities.