A licensed real estate agent is sued by a buyer for failing to disclose a known leaky roof. Which type of policy is most likely to cover this claim?
Explanation
Professional Liability (also called Errors & Omissions or E&O) covers claims arising from the rendering of, or failure to render, professional services. A real estate agent's duty to disclose material defects is a professional duty, not a premises hazard. Standard CGL Coverage A excludes liability arising from professional services. Most E&O policies are written on a CLAIMS-MADE basis.
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