Errors and Omissions Insurance (E&O Insurance) is a type of professional liability insurance that protects businesses and professionals from claims of negligence or inadequate work. It covers legal costs and damages that may arise if a client believes they have suffered a loss due to the services provided. This insurance is particularly important for professionals such as consultants, lawyers, and accountants, who may face lawsuits for mistakes or oversights in their work. E&O Insurance helps safeguard their financial stability and reputation by providing coverage for claims that could otherwise be financially devastating.