Errors and Omissions insurance is required for which of the following?

Errors and Omissions insurance is required for which of the following?

• A. Unlicensed assistants only
• B. Active Colorado broker license holders
• C. Real estate appraisers
• D. Buyers and sellers

Answer: (B)

Errors and Omissions insurance is a form of professional liability coverage that protects licensees from claims of mistakes or negligence in real estate services. In Colorado, this coverage is required for anyone who holds an active broker license, since those are the individuals authorized to perform licensed real estate activities and thus exposed to such claims. Unlicensed assistants aren’t engaged in licensed activities, so this requirement doesn’t apply to them. Real estate appraisers operate under a different professional framework, with their own insurance needs and regulatory rules, not this licensee-specific requirement. Buyers and sellers are clients, not licensees, so they don’t carry this insurance as a condition of practicing real estate.

Errors and Omissions insurance is a form of professional liability coverage that protects licensees from claims of mistakes or negligence in real estate services. In Colorado, this coverage is required for anyone who holds an active broker license, since those are the individuals authorized to perform licensed real estate activities and thus exposed to such claims. Unlicensed assistants aren’t engaged in licensed activities, so this requirement doesn’t apply to them. Real estate appraisers operate under a different professional framework, with their own insurance needs and regulatory rules, not this licensee-specific requirement. Buyers and sellers are clients, not licensees, so they don’t carry this insurance as a condition of practicing real estate.