What type of insurance protects against claims of inadequate work or negligent actions?

Errors and Omissions Insurance is designed to protect professionals from claims arising out of their negligent actions or inadequate work. This type of insurance is particularly relevant for individuals and businesses that provide advice or services, such as consultants, accountants, and real estate agents. If a client is unhappy with the work performed or believes that a negligent act or omission has caused them financial loss, Errors and Omissions Insurance will offer financial protection for legal costs and any settlements or judgments.

This coverage is critical because it addresses the specific risks associated with professional services, where the outcome is dependent on the expertise and judgment of the professional. It ensures that these professionals can defend themselves against claims without facing significant personal financial risk.