Final answer:
The correct insurance for a licensee facing a lawsuit for unknown termite damage in a property sale is errors and omissions insurance, which covers professionals against inadequate work or advice claims. The correct option is B.
Step-by-step explanation:
The type of insurance that protects a licensee in the situation where a plaintiff files a lawsuit against them for termite damage, which they were unaware of at the time of the property sale, is errors and omissions insurance (B).
This insurance is designed to cover professionals for claims made against them by clients who believe they received inadequate work or advice.
It is notably different from general liability insurance, which covers physical injuries or property damage, payment protection insurance.
Which secures payments on loans or credit in the event of illness, unemployment, or death, and worker's compensation insurance, which provides benefits to employees who suffer job-related injuries or illnesses.The correct option is B.