What is the primary function of errors and omissions liability insurance?

The primary function of errors and omissions liability insurance is to protect against malpractice and negligence claims. This type of insurance is specifically designed for professionals who provide advice or services, ensuring that they have coverage in case a client alleges that the services rendered were inadequate or led to a negative outcome. In the context of athletic training and related professions, it safeguards practitioners against claims related to their professional conduct, whether that be through a mistake or failure to act, leading to potential harm to an athlete or client.

While the other options address important aspects of liability and coverage, they do not specifically encapsulate the essence of errors and omissions liability insurance. For example, while medical costs coverage might relate to employee health, this insurance does not specifically cover employee injuries. Similarly, while providing coverage for physical injuries at work is important, that falls under general liability or worker’s compensation insurance rather than errors and omissions. Lastly, the idea of insuring against financial losses from lawsuits would be a broader concern that could be applicable to various insurance types but does not directly speak to the specific protection against malpractice and negligence that errors and omissions insurance offers.