Which of the following benefits does errors and omissions insurance provide Kentucky licensees?

Errors and omissions insurance serves as a critical safety net for real estate licensees, specifically protecting them from the repercussions of unintentional mistakes made while conducting their business. This type of insurance is designed to cover claims that arise from negligence, errors, or omissions in the provision of professional services.

For a Kentucky licensee, it means that if they were to make a mistake—such as failing to disclose important information about a property or making an error in a contract—that could lead to legal action against them, their errors and omissions insurance would provide the necessary financial protection to cover legal defense costs and any settlements that may arise from those claims.

The focus is on inadvertent actions, hence the importance of this coverage for professionals who might not always have control over every aspect of a transaction, but nevertheless are responsible for ensuring a smooth and fair process. This is why the benefit of coverage for inadvertent mistakes is the correct answer in this context.