As a licensed real estate professional, you are expected to follow established industry standards and exercise a high level of care when serving clients. However, clients may sometimes claim that a mistake was made or that an important step was overlooked during a transaction. E&O Insurance provides professional liability protection if a client alleges negligence, misrepresentation, or failure to perform professional duties.

This coverage helps protect brokers and agents against claims of financial loss resulting from an alleged error (a mistake) or omission (a failure to act). Importantly, E&O insurance also provides coverage for legal defense costs—even if the claim ultimately proves to be unfounded—helping protect both the agent and the brokerage.