Also known as E&O insurance, this form of coverage protects the policy-holder for negligent acts and omissions that may harm customers. Errors and/or omissions are usually interpreted as mistakes and/or failure of your firm to perform services as promised in a contract. Coverage includes defense and court costs as well as the amount of any claim or judgment up to the limits of the policy. E&O is commonly written to protect insurance agents. (See Professional Liability Insurance).