What does professional liability insurance (errors and omissions, or E&O) cover?

PROFESSIONAL LIABILITY (Errors & Omissions / E&O): Covers claims arising from the insured's PROFESSIONAL SERVICES — alleged ERRORS, OMISSIONS, NEGLIGENCE, or FAILURE TO PERFORM professional duties to the expected standard. EXAMPLES: An accountant makes an error causing a client financial loss; an insurance agent fails to obtain proper coverage; a consultant gives faulty advice; a real estate agent's error harms a client; MALPRACTICE: Medical malpractice is professional liability for healthcare providers; vs GENERAL LIABILITY: CGL covers bodily injury/property damage (slips, falls, accidents); E&O/professional liability covers FINANCIAL HARM from professional mistakes (not bodily injury); usually CLAIMS-MADE policies (note retroactive dates and tail coverage); REQUIRED/RECOMMENDED for: professionals whose advice/services could cause clients financial harm; professional liability/E&O is a distinct casualty line covering the financial consequences of professional errors — important exam content distinguishing it from general liability (which covers bodily injury and property damage rather than professional mistakes).