Mandatory Errors and Omissions Insurance
Wyoming is one of the states that requires active licensees to carry errors and omissions insurance. This chapter covers the requirement and its purpose.
The E&O Requirement
Wyoming requires active real estate licensees to carry errors and omissions (E&O) insurance covering their real estate activities. Brokers must ensure that they and their associated licensees maintain the required coverage, because it is a condition of active licensure.
Effect of a Lapse
Because E&O coverage is a condition of active licensure, a lapse generally bars the licensee from active practice until coverage is restored. Maintaining continuous coverage is part of keeping a license active in Wyoming.
Purpose of E&O Coverage
E&O insurance covers claims arising from a licensee's professional mistakes or negligence, protecting both consumers and licensees. It is distinct from the Recovery Fund and does not replace trust-account requirements; the two mechanisms address different risks.