What type of insurance protects real estate agents from potential lawsuits?

Errors and omissions insurance is specifically designed to protect real estate agents and brokers from claims arising out of their professional services, particularly in cases where a client feels they have been harmed due to negligence or inadequate work. This type of insurance covers legal costs, settlements, and damages resulting from various issues such as improper advice, failure to disclose material facts, or errors in contracts and documentation.

Real estate agents operate in a complex environment with numerous laws and regulations, making them susceptible to lawsuits from clients or third parties. Errors and omissions insurance provides essential financial protection, allowing real estate professionals to carry out their work with a degree of security against potential legal repercussions stemming from their professional activities.

Other types of insurance listed, such as liability insurance, property insurance, and title insurance, serve different purposes. Liability insurance generally protects against personal injury or property damage claims not directly related to professional services, property insurance covers physical property against risks like theft or damage, and title insurance protects against defects in the title to the property itself, not against malpractice claims related to professional services.