The need for E&O coverage has never been more prevalent — and it's not just for licensed professionals anymore.
Many industries are seeing E&O packages being released by providers to cover off the financial loss caused by advice given to the client or shareholder. If your business involves giving advice or guidance, click below to have our insurance experts review your exposure and offer a quote today!
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What Is Errors and Omissions Insurance?
Errors and omissions insurance — also known as professional liability insurance — helps protect businesses from financial consequences of mistakes made or services they failed to provide.
Unlike commercial liability insurance, professional liability insurance can protect you from legal and financial fallout if a client claims that your service has caused them financial loss. It’s a policy designed specifically for businesses that provide professional services or advice to their clients.
What Does Errors and Omissions Insurance Cover?
An errors and omissions policy can help protect you in the event a client sues you or your company for alleged wrongdoing. This includes claims for:
- Failure to fulfill contractual obligations
- Inaccurate advice
- Mistakes or errors
- Misrepresentation
- Malpractice or professional negligence
- Violation of good faith and fair dealing
If a client sues you, errors and omissions insurance can cover your attorney fees, court costs, administrative costs, and any settlements you might have to pay. You may incur legal fees even if you are found not liable, so it’s important to have a policy in place that can protect your business.
A professional liability insurance policy does not cover illegal acts or other purposeful wrongdoing, such as intentionally deceiving customers.
Does Your Company Need Errors and Omissions Insurance?
Yes, any business that provides professional services or advice should have errors and omissions insurance. Even the most seasoned professionals can make a mistake, and not having an E&O insurance policy puts your entire business at risk.
Keep in mind while it’s a smart business practice to carry commercial general liability insurance, those policies can protect you from things like bodily injury on your property or damage caused by one of your employees. General liability insurance will not cover you if a client alleges you were negligent in providing services or broke a contractual agreement.
Types of Businesses E&O Insurance Covers
At Sutherland Insurance, we pride ourselves on a personalized approach and deep industry knowledge to provide the most accurate and comprehensive quotes possible. We’ve helped professionals in several industries, including:
- Architecture
- Consulting
- Engineering
- Healthcare
- Information technology
- Finance
- Management
Regardless of your industry, we will work to find a solution that can fit your budget and protect your business. The cost of professional liability insurance is inexpensive when compared to the legal fees you might have to pay if a client decides to sue.
How Much Does Errors and Omissions Insurance Cost?
Every policy is different, whether you’re a small business in Cornwall or have locations throughout Ontario. The cost of your insurance depends on:
- Your industry
- Number of years you’ve been in business
- Your cyber risks
- Claims history
- Number of employees
- Coverage limit
An important consideration is not only where your business is located but also where you provide services. Sutherland Insurance is an expert at serving clients in Ontario and throughout Canada.
To get an accurate quote, it's important to speak with one of our qualified brokers to understand your needs.
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Frequently Asked Questions
