Professional liability insurance, also known as errors and omissions insurance, provides crucial protection for freelancers by covering legal costs and damages if a client claims that your services caused them financial loss or harm. This type of coverage safeguards freelancers from lawsuits arising from mistakes, negligence, or failures to deliver on a project as promised. With professional liability insurance, you gain peace of mind knowing that you are financially protected from potentially devastating claims, even if they are unfounded. It also enhances your professional reputation, showing clients that you take responsibility for your work and are committed to maintaining high standards. This insurance is especially important in industries like consulting, design, and IT, where advice and deliverables are integral to client success. Ultimately, it enables freelancers to focus on their work without the constant worry of costly legal battles that could threaten their career or business.