What type of insurance is purchased to protect against legal liability from unintended errors or omissions?

Errors and Omissions Insurance is specifically designed to protect professionals against legal liability that may arise from their work. This type of insurance covers negligent acts, mistakes, or omissions that lead to client financial losses. It is commonly used by professionals such as consultants, real estate agents, insurance agents, and other service-oriented businesses where the risk of making an error is prevalent.

This coverage ensures that if a client claims that they suffered a loss due to a mistake or oversight made by the professional, the insurance can cover legal fees, settlements, or judgments. This helps to mitigate the financial impact that can come with legal claims, allowing professionals to continue their work without the constant fear of potential lawsuits arising from unintentional errors.

In contrast, the other types of insurance listed serve different purposes: life insurance provides a benefit to beneficiaries upon the policyholder's death, property insurance protects against damage to physical assets, and health insurance covers medical expenses. Each serves a distinct need but does not specifically address the liability arising from professional errors or omissions as Errors and Omissions Insurance does.