Professional liability insurance, also known as errors and omissions insurance (E&O), is a type of insurance that provides protection to professionals in the event that they are sued for negligence or mistakes related to their professional services. This type of insurance is typically purchased by professionals who provide services or advice to clients, such as doctors, lawyers, accountants, and consultants.

Professional liability insurance covers a range of claims related to professional negligence, errors or omissions, and can include:

Claims of malpractice: If a professional's advice or services lead to harm or financial losses for a client, the client may sue for malpractice.

Claims of negligence: If a professional fails to meet the standards of their profession, such as failing to provide appropriate advice or services, they may be sued for negligence.

Claims of misrepresentation: If a professional makes false or misleading statements or representations to a client, the client may sue for damages.

Claims of breach of contract: If a professional breaches a contract with a client, such as failing to deliver promised services or failing to meet agreed-upon deadlines, the client may sue for damages.

Professional liability insurance can provide coverage for legal fees, damages, and other related costs associated with defending against these types of claims. The specific coverage provided by professional liability insurance varies depending on the policy and the profession, but it is generally designed to protect professionals from financial losses related to claims of negligence or mistakes in the performance of their professional services.