Errors and omissions policies are what type of insurance?

Errors and omissions insurance is a specialized form of liability insurance that protects businesses and individuals from claims made by clients for inadequate work or negligent actions that result in financial loss. This type of policy is essential for professionals, especially in industries such as film production, consulting, and design, where the services provided can lead to significant financial repercussions if not executed correctly.

Asset protection refers to strategies or insurance designed to safeguard one's wealth or property, which is different from errors and omissions coverage, as it specifically pertains to the liability for professional services rendered. While asset protection is an important aspect of risk management, it doesn't encompass the liability issues addressed by errors and omissions policies.

Understanding the specific role of errors and omissions insurance highlights its importance in protecting professionals against claims that could arise from errors in judgment or omissions in service delivery, ensuring they can continue their work without the looming threat of lawsuits from dissatisfied clients.