Loss insurance for professional liability, often known as errors and omissions (E&O) insurance, safeguards companies and individuals from financial losses resulting from alleged or actual mistakes, omissions, or negligence in the performance of professional duties. It provides coverage for legal expenses, damages, and settlements.
This insurance is crucial for professionals such as accountants, lawyers, architects, engineers, and consultants, as it protects them against claims of professional misconduct, malpractice, or inadequate service. E&O insurance ensures that businesses can continue operating and individuals can maintain their professional reputations in the event of a lawsuit. Historically, such insurance has played a vital role in risk management and maintaining trust within professional service industries.
