Certified Professional in Health Care Risk Management (CPHRM) Practice Exam 2026 - Free CPHRM Practice Questions and Study Guide

Errors and Omissions Insurance is specifically designed to provide coverage for claims arising from negligent acts, errors, or omissions in the performance of professional services. This type of insurance is particularly important for professionals whose advice or recommendations can result in client financial loss or other damages.

In many cases, individuals or entities that do not qualify for standard professional liability insurance can still obtain Errors and Omissions Insurance to protect themselves against potential lawsuits stemming from their professional activities. This coverage encapsulates a broad range of services, including consulting, brokerage, and other advisory roles where negligence might be alleged.

The other types of insurance mentioned do not cover negligent advice. General Liability Insurance typically covers physical injuries and property damage caused on a business's premises, not professional errors. Health Care Provider Insurance is focused on medical malpractice for health professionals and might not be applicable to those outside direct patient care. Property Insurance is designed to cover damage to physical assets rather than liability for professional advice. Thus, Errors and Omissions Insurance is the correct form of coverage for those needing protection from negligent advisory roles.