"Errors and Omissions Insurance is a special type of coverage that protects a Company against claims that a professional service provided, caused client to suffer financial harm due to mistakes on the part of professiona

Professional indemnity insurance is also known as professional liability insurance and also as Errors & Omissions (E&O) insurance. It is a type of liability insurance that works to protect businesses and individuals who provide consultation and services with the compensation for full and hefty costs arising from the loss that they have caused to their client. The coverage provided by the insurance company focuses on the alleged failure of the service delivery by the Company, which has led to the financial loss due to errors and omissions in the service or consultation. Some reasons that might make it necessary to have E&O are as under: High risk of lawsuits: Not having professional indemnity insurance may put a person at high risks as many companies may take advantage of the professionals since they are not completely secured. Moreover, it can put the Company/ Professional in a financial loss if a case is filed against them. Risk of losing business: Many clients prefer those companies which has such insurance for doing business, at times they are keen to know if the Company or any of its employees makes a mistake, whether it will be covered or not.