What type of insurance must Pennsylvania real estate brokers maintain?

In Pennsylvania, real estate brokers are required to maintain errors and omissions insurance. This type of insurance is specifically designed to protect brokers from claims arising from professional mistakes or negligence that may occur during the performance of their duties. It covers legal costs and damages that could result from errors in providing real estate services, such as misrepresentation, failure to disclose important information, or any other professional oversight.

Having errors and omissions insurance is essential for real estate brokers as it safeguards them financially and enhances their credibility with clients by ensuring they are prepared for any potential disputes or claims that may arise during transactions. While general liability, workers' compensation, and property insurance are important forms of coverage for various types of businesses, they do not specifically address the unique risks associated with real estate transactions in the same way that errors and omissions insurance does. Therefore, maintaining errors and omissions insurance is a fundamental legal requirement for real estate brokers operating in Pennsylvania.