Final answer:
Errors and omissions insurance covers various claims for mistakes, neglect, or carelessness in the normal business activities of a real estate brokerage.
Step-by-step explanation:
The insurance policy that covers various claims for mistakes, neglect, or carelessness in the normal business activities of a real estate brokerage is Errors and omissions insurance (option b).
This type of insurance is specifically designed for professionals who provide advice and services to clients, such as real estate brokers. It helps protect against claims related to professional errors or omissions that result in financial losses for clients.
For example, if a real estate brokerage fails to disclose important information about a property or makes an error in a contract, resulting in financial harm to a client, the errors and omissions insurance can provide coverage for potential legal costs, settlements, or damages.