Professional Liability insurance (Errors and Omissions Coverage) is important because it fills a glaring gap in the General Liability policy, which has a professional services exclusion that takes away coverage for lawsuits arising out of the rendering of or failure to render professional services. The definition of Errors and Omissions Insurance can vary per policy form. In addition, the General Liability form does not cover lawsuits alleging purely economic damages.
The Professional Liability (Errors and Omissions Insurance) policy form was designed to fill these gaps, which just happen to be among the most likely areas that will result in lawsuits against most professionals. A good Professional Liability (Errors and Omissions Liability) insurance policy is necessary to safeguard the assets of any company that provides professional services.