diff --git a/src/CoverageTools.jl b/src/CoverageTools.jl
index bf1923b..ed88abc 100644
--- a/src/CoverageTools.jl
+++ b/src/CoverageTools.jl
@@ -18,11 +18,24 @@ const CovCount = Union{Nothing,Int}
 """
     has_embedded_errors(expr)
 
-Recursively check if an expression contains any `:error` nodes.
+Recursively check if an expression contains any `:error` nodes that represent
+actual parse errors. This excludes false positives like `Expr(:error, :symbol)`
+which appear when JuliaSyntax parses `break label` where `label` happens to be
+named `:error` or other keywords.
+
+True parse errors either have no arguments `Expr(:error)` or have string messages.
 """
 function has_embedded_errors(expr)
     expr isa Expr || return false
-    expr.head === :error && return true
+    if expr.head === :error
+        # Expr(:error, :symbol) appears from "break symbol" where symbol is a label name
+        # This is not a parse error, just unfortunate naming when the label is :error, :done, etc.
+        # Real parse errors are Expr(:error) with no args or Expr(:error, "message string")
+        if length(expr.args) == 1 && expr.args[1] isa Symbol
+            return false  # This is a label reference, not a parse error
+        end
+        return true  # This is a real parse error
+    end
     return any(has_embedded_errors, expr.args)
 end
 
@@ -46,7 +59,7 @@ function find_error_line(expr, last_line=nothing)
                 return Int(line_num), false
             end
         end
-        
+
         if expr.head === :error
             # Found an error, return the last seen line number
             return last_line, true
diff --git a/test/runtests.jl b/test/runtests.jl
index 706455e..4bfdf32 100644
--- a/test/runtests.jl
+++ b/test/runtests.jl
@@ -49,6 +49,19 @@ end
     # Test no error
     ast_no_error = Expr(:block, :(x = 1), :(y = 2))
     @test !CoverageTools.has_embedded_errors(ast_no_error)
+    
+    # Test Expr(:error, :symbol) from "break label" is NOT treated as an error
+    # This can occur when JuliaSyntax parses "break error" where "error" is a label name
+    ast_break_label = Expr(:&&, :(val === nothing), :(break), Expr(:error, :error))
+    @test !CoverageTools.has_embedded_errors(ast_break_label)
+    
+    # Test with other label names
+    ast_break_done = Expr(:block, Expr(:error, :done))
+    @test !CoverageTools.has_embedded_errors(ast_break_done)
+    
+    # But real error messages (strings) should still be detected
+    ast_real_error = Expr(:block, Expr(:error, "syntax error"))
+    @test CoverageTools.has_embedded_errors(ast_real_error)
 end
 
 withenv("DISABLE_AMEND_COVERAGE_FROM_SRC" => nothing) do