Errors & Omission (E&O) insurance protects insured businesses and employees from claims and lawsuits brought up by clients due to inadequate work or negligence. If an accounting professional gets some numbers wrong on a report, which eventually leads to a loss on the client side, he could get sued, and in such scenario, an E&O policy can cover his legal expenses and liabilities. Therefore, it is also called malpractice insurance or professional liability insurance.
E&O insurance has a focus on the liabilities arising from the professional work conducted by the insured, while Commercial General Liability (CGL) insurance covers a broader range of losses, most of which are not-related to professional work. For example, the liability from a customer's slip and fall injury on insured's premises is within the domain of CGL insurance.
Cyber insurance is often written as an endorsement to E&O policies as cyber incidents like data breaches and privacy violations are considered the insured's failure in protecting customers' data and privacy which should be taken care of by IT professionals. Yet, it is also common that cyber coverages are written as endorsements to CGL policies.
