Professional liability insurance
Professional Liability or Professional Indemnity insurance, more commonly known as errors & omissions (E&O) in the USA, is a form of liability insurance which helps protect professional advice and service providing companies from bearing the full cost of defending against a negligence claim made by a client, and damages awarded in such a civil lawsuit.
The coverage focuses on alleged failure to perform on the part of, financial loss caused by, and error or omission in the service provided or product sold by the policyholder.
These are causes for legal action that would not be covered by a general liability insurance policy. Coverage usually includes defence costs, including when legal action turns out to be groundless.
