Errors and omissions insurance is also known as professional liability insurance. Its purpose is to protect you against lawsuits claiming that you made an error while providing professional real estate services.
This type of insurance can help cover court costs or settlements should legal action be taken against you. Without E&O insurance, it could potentially become very expensive, very fast. You would need to pay for legal services on your own, even if you are found not to be at fault.
Errors and omissions insurance is not a requirement for real estate brokers in Washington, but owning a policy should be considered because of the important protection it can provide.