Which of the following is a feature of Errors and Omissions Insurance?

Errors and Omissions Insurance (E&O Insurance) is specifically designed to protect professionals in various fields, including real estate, from claims of negligence or inadequate work. This type of malpractice coverage helps ensure that if a client alleges that a real estate agent made an error or omission in the professional services provided, the policy can cover defense costs and any settlements or judgments that arise from those claims.

This coverage is essential in the real estate industry because agents and brokers face significant liability risks in their dealings. For example, if a seller or buyer feels that they did not receive proper advice or that there were significant oversights in a transaction, E&O insurance can protect the agent from financial repercussions resulting from such disputes.

Other options do not accurately represent the nature of Errors and Omissions Insurance. General personal injury claims, ethnic disputes, and claims of complete coverage for transactions fall outside the typical scope of what E&O Insurance provides, as it specifically relates to errors or omissions in professional duty and does not cover broader liabilities or issues unrelated to professional services.