This policies cover persons with E&O liability exposure, as opposed to professional liability exposure. Professional liability tends to apply to professions demanding a very high standard of care, many years of study, and a formal licensing process, e.g. heart surgeons. On the other hand, E&O liability refers to vacations where performance, formal study and licensing standards are applicable but less rigorous, e.g council members of management committees of social clubs and condominium.
An E&O Insurance policy will therefore indemnify the insured against their legal liability to pay for damages and claimant's cost and expenses arising out of neglect, errors or omissions committed by them in their capacity as members of the council.