Errors & Omissions, or E&O, protects clients from liability resulting from errors or omissions in the performance of professional duties. Errors & Omissions is applicable as a general rule to professional business activities such as banking, accounting, law, insurance and real estate.
An error and omission, a mistake, which causes financial harm to another can occur on almost any transaction in any profession. This type of insurance helps to protect a professional, an individual or a company, from bearing the full cost of defense for lawsuits relating to an error or omission in providing covered professional services. This is a separate coverage from a standard General Liability or Property Insurance Policy.