Professional Liability Insurance for freelancers, also known as Errors and Omissions (E&O) insurance, protects freelancers from claims of negligence, mistakes, or failures in the services they provide. If a client alleges that a freelancer’s work caused financial harm due to errors, omissions, or subpar performance, this insurance covers legal defense costs, settlements, and judgments. It is particularly essential for freelancers offering specialized services, such as consulting, design, writing, or IT, where the risk of mistakes or dissatisfaction is higher. This insurance helps safeguard a freelancer’s business and reputation from costly lawsuits that could arise from claims of professional negligence, inaccuracies, or unmet expectations. Without it, freelancers might face significant financial setbacks, especially if they cannot afford to cover legal expenses or damages out-of-pocket. It ensures that freelancers can continue working without the constant fear of financial ruin due to potential client disputes.