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Attempting to create a custom location type using Esri Maps for Office fails with the message:
"An error has occurred."
This happens in the Add Location Type wizard upon naming a location and clicking the Add button.
Add Location Type wizard
The cause of this error is insufficient read / write permissions for the EsriMaps folder where the new location type is written.
Read / write access must be granted by an administrator to the appropriate directory:
The following are the default installation locations of the EsriMaps folder. If another location was chosen during installation, change access permissions there.