Which type of insurance would typically cover professional liability lawsuits?

Which type of insurance would typically cover professional liability lawsuits?

• A. General liability insurance
• B. Errors and omissions insurance
• C. Property insurance
• D. Commercial auto insurance

Answer: (B)

Errors and omissions insurance is specifically designed to protect professionals against liability claims arising from mistakes or failures in the services they provide. This type of insurance is crucial for individuals and businesses offering professional services, such as attorneys, consultants, and real estate agents, where the risk of being sued for negligence, errors, or omissions in their professional duties is high. It covers the costs associated with legal defense and any settlements or judgments that may arise from such lawsuits, making it an essential component of risk management for professionals. In contrast, general liability insurance typically covers claims related to bodily injury, property damage, and personal injury but does not cover professional errors. Property insurance focuses on physical assets and does not address liability claims. Commercial auto insurance is used for business vehicles and covers accidents and damages related to their use, not professional liability issues.

Errors and omissions insurance is specifically designed to protect professionals against liability claims arising from mistakes or failures in the services they provide. This type of insurance is crucial for individuals and businesses offering professional services, such as attorneys, consultants, and real estate agents, where the risk of being sued for negligence, errors, or omissions in their professional duties is high. It covers the costs associated with legal defense and any settlements or judgments that may arise from such lawsuits, making it an essential component of risk management for professionals.

In contrast, general liability insurance typically covers claims related to bodily injury, property damage, and personal injury but does not cover professional errors. Property insurance focuses on physical assets and does not address liability claims. Commercial auto insurance is used for business vehicles and covers accidents and damages related to their use, not professional liability issues.