Which insurance protects real estate brokers from potential lawsuits?

Errors and Omissions Insurance is specifically designed to protect professionals, including real estate brokers, from claims of negligence, mistakes, or failures to perform their duties in a professional manner. This type of insurance covers legal costs and damages that may arise from lawsuits related to the services provided by the broker, such as misrepresentation, failure to disclose information, or inadequate advice given to clients.

In the real estate industry, brokers face various risks due to the nature of their work, which involves substantial financial transactions and client interactions. Errors and Omissions Insurance helps mitigate the financial risks associated with these potential lawsuits, ensuring brokers can operate with a degree of security.

Other types of insurance mentioned do not provide the same level of protection for brokers in terms of professional liability. Workers Compensation Insurance addresses workplace injuries to employees, Commercial Auto Insurance covers vehicle-related incidents, and Property Damage Insurance pertains to damage to physical properties rather than liability related to professional services. Thus, Errors and Omissions Insurance is the most relevant and crucial form of protection for real estate brokers against lawsuits.