Which of the following statements about errors and omissions insurance is true?

Errors and omissions insurance (E&O insurance) is designed to provide coverage for real estate professionals against claims of negligence, mistakes, or failure to perform duties in the course of their work. The correct statement is that it protects against errors in written contracts. This means that if a real estate licensee makes a mistake in a contract that leads to a financial loss for a client, the E&O insurance can help cover the costs related to legal claims and other expenses that arise from that mistake.

In the context of real estate transactions, written contracts are central to the operation of buying, selling, or leasing property. Misunderstandings or errors in these contracts can result in significant issues; thus, having E&O insurance helps safeguard the licensee's financial stability and provides peace of mind when conducting real estate transactions.

The option regarding intentional misconduct is inaccurate because E&O insurance typically does not cover any claims arising from willful or intentional illegal acts. The focus of E&O insurance is to address unintentional errors rather than deliberate wrongdoing.

As for the notion of it being optional for real estate licensees, while it may not be legally mandated in all circumstances, having E&O insurance is highly advisable and often encouraged by real estate boards and agencies to protect licensees