What is another term for professional liability insurance?

Professional liability insurance is commonly known as errors and omissions insurance. This type of insurance protects professionals from claims of negligence or inadequate work. It is specifically designed to cover the cost of defending against lawsuits alleging errors, omissions, or negligent acts that occur during the performance of professional services.

In the context of a builder or contractor, having errors and omissions insurance is crucial as it helps safeguard against potential claims that may arise from mistakes or oversights in the execution of their work. This is particularly important in industries where the quality of service or the final outcome can have serious implications for clients.

The other terms presented refer to different types of insurance. General liability insurance covers claims related to bodily injury and property damage that occur on a business's premises or due to its operations but does not focus specifically on professional service errors. Comprehensive insurance typically refers to a broad coverage that may cover various risks but is not specifically aligned with the context of professional liability. Property damage insurance specifically protects against physical damage to property, again not addressing the nuances of professional service inadequacies.