Also known as Professional Liability insurance, an Errors and Omissions (E&O) policy protects your business against claims of negligence, misrepresentations, or mistakes. Professional Liability claims are typically made by clients who allege some form of financial damage as a result of your services, products or employees. Also known as Professional Liability insurance, an Errors and Omissions (E&O) insurance policy protects your business against claims of negligence, misrepresentations, or mistakes. Clients typically make Errors and Omissions claims when they have suffered a financial loss of damage as a result of your services, products or employees.