What type of insurance protects against claims resulting from professional negligence?

The type of insurance that specifically protects against claims resulting from professional negligence is errors and omissions insurance. This coverage is essential for professionals who provide services or advice to clients, as it protects them against claims of inadequate work or negligent actions that result in client financial loss.

Errors and omissions insurance is particularly important for professions such as consulting, legal, medical, and real estate, where the risk of being sued for a perceived lack of professional competence or failure to perform professional duties is higher. This insurance typically covers legal defense costs and any settlements or judgments that may arise from claims of negligence, ensuring that professionals can defend themselves against allegations without facing crippling financial losses.

Other types of insurance mentioned, such as general liability insurance, primarily cover bodily injury and property damage claims, rather than professional negligence. Health insurance is designed to cover medical expenses for the insured and their dependents, while worker's compensation insurance provides benefits to employees who are injured on the job. These do not address the professional risks inherent in consultancy and advisory roles, making errors and omissions insurance the appropriate choice for protection against claims of negligence in professional practice.