- Professional Liability InsuranceErrors and omission insurance is also termed as professional liability insurance which offers protection to an individual or company in the event a customer or clients makes a claim related to inadequate work or negligent actions.  The major difference between errors and omissions insurance and surety bonds is E&O serves to protect the purchaser of the policy where bonds cover a third party. In addition, surety bonds cover fraud or criminal acts where E&O policies do not.
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