Question

Reagan, is a life insurance agent, who recently obtained his license. In order to act in compliance with regulations and codes of conducts, he was required to obtain an errors and omissions (E&O) coverage which is a form of a professional liability insurance. The E&O coverage provides indemnity for Reagan in situations involving:

a) negligence.
b) infringement of trademarks.
c) employee lawsuits.
d) bankruptcy.

Answer 1

Errors and omissions (E&O) coverage is a form of professional liability insurance that protects against negligence.

Step-by-step explanation:

The subject of this question is Business.

Errors and omissions (E&O) coverage is a form of professional liability insurance that provides indemnity against negligence. In Reagan's case, as a life insurance agent, if he makes a mistake or acts negligently in providing his services, the E&O coverage would protect him from the financial consequences of any resulting claims or lawsuits.

Therefore, the correct option is a) negligence.