What is the minimum annual limit for Errors and Omissions Insurance if an agent has less than 10% interest in a business?

In Texas, the minimum annual limit for Errors and Omissions Insurance is established to protect real estate agents from potential lawsuits stemming from mistakes or oversights in their professional services. For agents who hold less than a 10% interest in a business, the required minimum coverage amount is $1 million. This coverage ensures that there are adequate financial resources available to address claims that may arise from professional errors, thereby safeguarding both the agent's practice and the clients they serve. This higher limit reflects the state's emphasis on financial protection in the real estate industry, reinforcing the importance of maintaining a responsible level of insurance, especially for those who may not have significant ownership stakes in a business yet still operate in a professional capacity.