Final answer:
Errors & omissions insurance may cover a real estate agent who unknowingly closes a sale with hidden water damage to the roof.
Step-by-step explanation:
Errors & omissions insurance, also known as professional liability insurance, typically covers professionals, such as real estate agents, against claims made by clients for negligence, errors, or omissions in their work.
If an agent unknowingly closes a sale without being aware of hidden water damage to the roof, and a lawsuit is filed against the agent, it is possible that the agent may be covered by errors & omissions insurance. However, the specific coverage would depend on the terms and conditions of the insurance policy.