This type of insurance coverage designed to protect traditional professionals(e.g., physicians) and quasi professionalse.g., real estate brokers) against liability incurred as a result of errors and omissions in performing professional services.
Example:
• A Doctor misdiagnoses a patient’s persistent headaches as stress-related and advices rest. The patient later has a stroke and discovers that the headaches were a symptom of a brain aneurysm. The doctor could be sued for medical malpractice. Medical malpractice insurance can help cover the legal fees and damages.