Which insurance type is focused on protecting against negligence in professional services?

The focus of Error and Omissions Insurance (E&O) is specifically on protecting professionals against claims of negligence or failure to perform their professional duties. This type of insurance is crucial for individuals and businesses that provide professional services, such as consultants, attorneys, and healthcare providers. In the event that a client believes they have suffered a financial loss due to a mistake or oversight made by a professional, E&O insurance provides coverage for legal costs and any settlements or judgments.

Because many professionals and service-oriented businesses face the risk of claims stemming from their services, having E&O insurance is essential to mitigate these risks. It ensures that they can defend themselves against allegations of negligence without facing overwhelming financial repercussions.

Other insurance types mentioned do serve different purposes: General Liability Insurance primarily protects against bodily injury and property damage claims, Commercial Insurance can cover various business risks but is not specific to negligence in services, and Workers' Compensation Insurance covers employee injuries and illnesses sustained on the job rather than negligence-related claims. Thus, E&O Insurance stands out as the most appropriate choice for professionals concerned about liability related to their services.