Professional Liability Insurance, often called Errors & Omissions (E&O), is a type of business insurance designed specifically for firms and individuals who provide professional services or advice for a fee. It protects your firm if a client claims that your work, advice, or omission caused them financial harm. Unlike standard general liability coverage, E&O responds to the financial consequences of professional mistakes, and covers legal defence costs, settlements, and judgments even if the claim is ultimately found to be without merit.