This article originally appeared in Anderson Kill's Policyholder Advisor (March/April 2010).

Although to err is human, in business, to forgive is more than divine — it’s exceedingly rare. For that reason, Errors & Omissions (“E&O”) Insurance, covering companies and individuals for malpractice, mistakes or negligence made in the line of work that allegedly cost a client or customer money, is a core component of most corporate risk management programs.