You will need to show proof that you have acquired errors and omissions insurance when you apply for your affiliated broker license. Errors and omissions insurance, which is sometimes referred to as E&O insurance or even professional liability insurance, helps protect you from lawsuits claiming you made an error while providing professional real estate services. This insurance is critical and can help cover court costs or settlements, if a lawsuit were to be brought against you. It can be very costly for you to try to pay for legal services on your own, even if you are ultimately found not to be at fault. You will be required to continue coverage while you have an active affiliate broker or broker license in Tennessee.