What insurance provides coverage for liability arising from professional mistakes?

Errors and omissions insurance, commonly referred to as E&O insurance, specifically provides coverage for professionals against claims of negligence or inadequate work. This type of insurance is essential for individuals or businesses that offer professional services, such as consultants, healthcare providers, lawyers, and accountants. It protects them from financial losses due to legal actions taken by clients for mistakes, omissions, or failure to deliver services as expected.

In contrast, general liability insurance offers broader coverage for physical injuries and property damage, but it does not include protections for professional errors. Property insurance focuses on reimbursing loss or damage to tangible property, and political risks insurance protects against the financial fallout from political events, such as expropriation or political violence, which again does not address professional mistakes in service delivery. Thus, E&O insurance stands out as the appropriate choice for addressing liability arising from professional errors, confirming its relevance in the professional services landscape.