Errors and omissions (E&O) insurance is a type of professional liability coverage that protects businesses and individuals from claims alleging negligent acts, errors, or omissions in the professional services they provide. This insurance is particularly crucial for those offering advice, making recommendations, or providing specialized expertise to clients. E&O policies typically help cover the costs of legal defense, settlements, and judgments that may arise from such claims, safeguarding the insured’s financial well-being and business reputation. It acknowledges that even with the best intentions and expertise, mistakes can happen in professional practice.