What type of insurance compensates practitioners for mistakes made in their professional duties?

• A. Property Insurance
• B. Errors and Omissions Insurance
• C. General Liability Insurance
• D. Healthcare Liability Insurance

Answer: (B)

Errors and Omissions Insurance is designed specifically to protect professionals from liability arising from mistakes or negligence in the performance of their professional duties. This type of insurance is commonly used by individuals such as lawyers, accountants, consultants, and healthcare providers, ensuring that if a client claims to have suffered a loss due to a professional's error, the insurance will cover legal costs and any awarded damages.

This coverage is critical in professional settings where the knowledge and skills of the practitioner are relied upon. Such professionals can face significant financial risks from lawsuits resulting from their decisions or advice, making Errors and Omissions Insurance an essential part of their risk management strategy. The focus of this coverage is on providing compensation for errors made during the course of providing professional services, rather than covering physical damages to property or injuries to a person.