What does Errors and Omissions insurance cover?

Errors and Omissions insurance is specifically designed to protect professionals, including mortgage associates, from claims arising due to negligent acts or inadequate performance in the course of their duties. This type of insurance provides coverage for situations where a client believes that they have suffered a financial loss because the professional did not carry out their responsibilities properly. For example, if a mortgage associate provides incorrect advice that leads to a financial loss for a client, this insurance would cover the legal costs and any settlements related to that negligence.

The other options focus on types of coverage that are not included in Errors and Omissions insurance. Property damage, theft, vandalism, and mortgage default fall under different types of insurance, such as property insurance, general liability insurance, or specific mortgage default insurance. Each of these covers distinct risks that do not relate directly to the professional responsibilities or advice of a mortgage associate.