Errors and omissions insurance is a type of professional liability insurance designed to protect your business from lawsuits. As an insurance agency, your business could be sued due to perceived or actual errors that your agents have made. When you are selling insurance products and offering insurance advice, you need insurance coverage for any action which could have negative results for your clients and customers. Errors and omissions insurance takes care of this for you, ensuring you can cover the costs of legal fees, court expenses, and settlements.