Which policy type is designed to protect against negligence claims in professional services?

The Errors and Omissions Policy is specifically designed to provide coverage for professionals against claims of negligence arising from their professional services. It protects individuals and businesses from financial loss resulting from mistakes or oversights in the course of their work, such as providing incorrect advice, failing to perform a task, or misrepresenting information. This type of policy is essential for licensing professionals, like doctors, lawyers, and consultants, who face risks from clients alleging that their services caused them harm or loss.

While General Liability Policies cover a wide range of liability claims, including bodily injury and property damage, they do not specifically protect against issues related to professional negligence. Professional Indemnity Policies are similar to Errors and Omissions Policies, but the term is more commonly used outside of the United States and may have specific definitions depending on jurisdiction. Directors and Officers Policies protect corporate executives from claims arising from their management decisions but do not cover negligence claims regarding professional services.