Businesses should have professional error and omissions insurance no matter how small the business or how small of a chance there is that a legal action will be taken against it. E&O insurance will cover a business even if the claim is baseless. All businesses need this safeguard in this litigation happy society. No matter how efficient or well run a business may be, none are except from the possibility of a lawsuit stemming from a claim of negligence even if it is clearly false.