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 that a service provided was not performed correctly or failed to meet their expectations. This insurance is particularly important for professionals such as consultants, lawyers, and accountants, who may face lawsuits for mistakes or oversights in their work. By having E&O Insurance, these professionals can safeguard their financial stability and maintain their reputation in the industry.