Annual Errors and Omissions (E&O) Insurance for real estate agents is a professional liability insurance policy that provides coverage against claims of negligence, mistakes, or omissions in real estate transactions. This insurance helps protect agents and brokers from financial losses due to lawsuits or claims alleging misrepresentation, failure to disclose property defects, contract errors, or other professional oversights.

E&O insurance typically covers legal defense costs, settlements, and judgments, up to the policy limits, and is renewed annually to maintain continuous protection. Many brokerages require their agents to carry this coverage, as it safeguards both the agent and the firm from costly legal disputes.