New York Real Estate Broker Exam — All Questions

A New York brokerage wants coverage against a claim that one of its licensees gave negligent professional advice. That coverage is:

• a.errors and omissions, or professional liability✓
• b.workers' compensation, which covers employee injuries
• c.premises liability, which covers injuries at the office
• d.a commercial crime bond, also called a fidelity policy

The Department's broker syllabus lists the coverages a brokerage should carry and names them separately: “liability, worker's compensation, professional liability (Errors and Omissions), Premises liability, commercial crime bond, (fidelity policy) for property management brokerages.” Errors and omissions responds to claims arising from professional services — a missed disclosure, a misdescribed property, bad advice — which is the exposure the question describes. A fidelity policy or crime bond responds to dishonesty by staff, which matters most where a brokerage handles other people's money. Premises liability responds to bodily injury on the brokerage's own premises, and workers' compensation to employee injury. The same chapter pairs insurance with agent safety, asking brokers to write guidelines covering threat identification, safety tactics and cyber security.