Errors & Omissions (E&O) Insurance

Errors and Omissions (E&O) insurance in Canada is a professional liability policy that protects businesses against claims of negligence, mistakes, or failure to deliver services that result in client financial loss.

E&O insurance is commonly required by consultants, technology companies, financial professionals, real estate professionals, and service providers whose advice or services could lead to client financial losses.

The cost of E&O insurance in Canada depends on industry, revenue, services provided, contract exposure, and claims history. Higher-risk professions or businesses with prior claims may face higher premiums.

E&O insurance covers legal defence costs, settlements, and damages related to professional negligence, errors, omissions, or failure to meet contractual obligations in delivering services.

E&O insurance is not always legally required, but many industries, regulators, and contracts mandate it. It is often essential for protecting businesses that provide advice, expertise, or professional services.

Hard-to-place E&O risks include emerging professions, high-risk industries, prior claims, or complex service offerings. These risks often require specialty insurers with expertise in professional liability.

E&O insurance and professional liability insurance are often used interchangeably in Canada. Both provide coverage for financial losses caused by professional mistakes, negligence, or service-related errors.

Brokers can submit E&O risks by providing details on services, revenue, contracts, client types, and claims history. Clear and complete submissions help underwriters assess exposure and provide accurate quotes.