Hi Tawana,
Without continue on error the failing step will make the script fail and move to the vuser_end which is not what you want to achieve.
You should write additional logic in the transaction, so that if it fails the log out and log in steps are performed.
You can also use lr_continue_on_error( int value); to control error handling for a specific segment of the script, by inserting the lr_continue_on_error function before and after the desired segment. Please check LoadRunner Function reference for more details.
Kind regards,
Vesela