Errors and omissions insurance is the same as professional liability insurance. Like all insurance, it is meant to reduce risk. In this case, its purpose is to protect you against potential lawsuits claiming that you made an error while providing professional real estate services.
This type of insurance can be valuable for covering court costs or paying settlements, should legal action be taken against you. Without E&O insurance, a lawsuit could potentially become very expensive, very fast, and even lead to financial ruin. Even if you are found not to be at fault, you will need to pay legal fees on your own.
Errors and omissions insurance is not required for real estate salespersons in South Carolina, but you still may want to consider buying a policy to mitigate risk.