Professional liability insurance, also called errors and omissions insurance (E&O insurance) or indemnity insurance, protects the business if you are sued for negligently performing your services, even if you haven’t made a mistake. 

A customer could sue you because you did something you shouldn’t have, or you didn’t do something you should have, in the course of providing professional services. A professional liability insurance policy could protect you by covering the cost to defend yourself, as well as any settlement or judgment.