As a professional in your industry you provide services and/or advice to clients. You are great at what you do, but mistakes can happen either as an error or an omission, and if one costs your client financially you could be looking at a lawsuit. This is where Professional Liability Insurance comes in to play. Professional liability, sometimes called Errors & Omissions (E&O) insurance helps protect you and your company against a claim that professional services or advice you provided caused a client financial harm due to mistakes on your business’s part. A mistake can either be an error, an omission, and/or a failure to perform some service.
For example, a tax accountant could have a claim that they made a mistake on a form or calculation, that they failed to advise/include a form in the needed paperwork, or that they failed to submit the paperwork to the proper authorities. Each of these claims would fall under their Professional Liability policy.