This coverage protects against claims of negligence, mistakes, or omissions in the services rendered, which result in financial losses or damages for clients.

E&O insurance is particularly important for professions such as consultants, accountants, lawyers, architects, and real estate agents, where even a minor error or oversight could lead to significant financial repercussions or legal liabilities. This insurance covers legal defense costs, settlements, and judgments arising from lawsuits alleging professional negligence.

By having E&O insurance in place, professionals can mitigate the financial risks associated with potential claims and maintain their reputation and credibility in their respective fields. It provides peace of mind, allowing them to focus on delivering quality services to clients without the constant fear of costly litigation hanging over their heads.