Which type of insurance is designed to protect against risks associated with professional negligence?

Errors and omissions insurance, often referred to as professional liability insurance, is specifically designed to protect professionals from claims of negligence or failure to perform their professional duties. This type of insurance covers legal defense costs and any settlements or judgments that might arise from claims made by clients against the professional for mistakes or negligence in their work.

In professions where the quality of service is critical, such as in lead abatement or other environmental professions, errors and omissions insurance provides a necessary financial safety net. It ensures that parties can pursue claims without the fear of crippling financial loss for the professional, allowing them to operate their businesses with a level of security concerning potential legal actions.

Workers' compensation, general liability, and builders risk insurance serve different purposes. Workers' compensation covers employee injuries on the job, general liability protects against claims of bodily injury or property damage, and builders risk insurance covers buildings under construction. Each of these focuses on specific types of risks but does not address professional negligence, which makes errors and omissions the appropriate choice in contexts involving professional services.