Errors and Omissions (E&O) insurance covers claims related to professional mistakes, negligence, inadequate work, misrepresentation, breach of duty, and failure to deliver services as promised. It protects professionals like consultants, real estate agents, financial advisors, and IT specialists from client lawsuits over financial losses due to errors or omissions in their work. Common claims include missed deadlines, contract breaches, professional negligence, and inaccurate advice. E&O insurance typically covers legal defense costs, settlements, and judgments, even if the claim is unfounded. However, it doesn’t cover criminal acts, intentional wrongdoing, bodily injury, property damage, or employee disputes. Coverage varies by industry, policy terms, and provider, making it essential for businesses that provide professional services. Without E&O insurance, a single lawsuit could result in costly legal fees and reputational damage. Having this coverage ensures financial protection and peace of mind in case of unforeseen professional liability claims.