An insurance form that protects the insured against liability for committing an error or omission in performance of professional duties. Generally, such policies are designed to cover financial losses rather than liability for bodily injury (BI) and property damage (PD).

Liability insurance policy that provides protection against loss incurred by a client because of some negligent act, error, or omission by the insured.
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Policies generally available to the various professions that require protection for negligent acts and/or omissions resulting in bodily injury, personal injury and/or property damage liability to a client. For example, law firms are often exposed to the claim that inadequate or improper legal advice was provided resulting in a claim by the client that they suffered a loss. (02) A form of insurance which covers losses resulting from financial institutions failing to effect appropriate insurance coverage.