Professional Liability Insurance (E&O)
Coverage that protects professionals and businesses from claims of negligence, errors, or failure to perform professional duties. Also known as Errors and Omissions (E&O) insurance. It is essential for consultants, accountants, architects, IT professionals, and anyone who provides advice or services for a fee.
Real-World Example
An accountant made a mistake on a client's tax return that resulted in IRS penalties. The accountant's E&O insurance covered the client's financial losses and legal defense costs.
Related Terms
Disclaimer: This glossary entry is for informational purposes only and does not constitute financial or insurance advice. Consult with a licensed insurance professional for personalized guidance. GuardianChoices may earn affiliate commissions from links on this site — see our advertiser disclosure.
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