What type of insurance is required for violations under Texas Occupations, Code Chapter 1102?

In Texas, violations under Occupations Code Chapter 1102 pertain specifically to the field of real estate, which includes issues related to real estate brokers and sales agents. The requirement for Professional Liability Insurance, also known as Errors and Omissions Insurance, is aimed at protecting these professionals against claims that may arise from their professional services, including claims of negligence or failure to perform fiduciary duties.

This type of insurance is particularly important for real estate professionals because it provides coverage for legal defense costs and settlements that might arise from lawsuits alleging that the licensed professional made a mistake or did not fulfill their obligations in their transactions. This aspect of insurance ensures that brokers and sales agents are financially protected in a landscape that involves significant financial transactions and contractual obligations.

Other insurance types, like General Liability, Workers' Compensation, or Health Insurance, do not specifically address the errors and omissions that can occur in real estate transactions, making Professional Liability Insurance the most pertinent and required form for compliance under Texas Occupations Code Chapter 1102.