What is another name for errors and omissions insurance?

Errors and omissions insurance is also known as professional indemnity insurance. This type of coverage is specifically designed to protect professionals against claims of negligence, mistakes, or failures in the services they provide. It is particularly relevant for fields where expert services are offered, such as consulting, financial advisory, and legal services.

When a professional's advice or services lead to client losses, errors and omissions insurance helps cover the costs associated with defending against such claims and any settlements or judgments that may arise. This form of protection is crucial for maintaining trust and financial stability within professional practices.

Other types of insurance, like general liability insurance or property insurance, serve different purposes, such as covering physical injuries or damages to external properties, and therefore are not suitable substitutes for the unique risks associated with professional services. Contingency insurance, while also a type of risk management insurance, relates more to specific events or situations rather than the ongoing professional mistakes or oversights that errors and omissions insurance addresses.