Errors and omissions insurance protects a business against claims made for negligent acts or inadequate work by employees that result in a financial loss. The exact terms of the insurance vary by industry, since different types of errors and omissions may occur in each one. The insurance typically does not cover employment matters, fraudulent acts, loss of trade secrets, or false advertising. The insurance covers any settlements made, as well as court costs, up to a maximum amount specified in the insurance contract. A business should obtain errors and omissions insurance when it provides any type of service to a customer. Examples of applicable businesses are building contractors, accounting firms, and engineering firms.