Errors and Omissions (E&O) Insurance
Contractors Insurance is an award-winning commercial insurance brokerage based in Ontario. We provide fully-customized insurance plans for contractors and tradespeople so that they get the coverage they need.
Errors and omissions (E&O) insurance is a type of professional liability insurance that protects contractors from claims that allege their service was sub-par. It also offers protection against lawsuits pertaining to misconduct, negligence, mistakes, or failure to deliver services as promised. It’s a must if you want to secure your finances early on in your career.
Contractors Insurance has provided numerous businesses and contractors with specialized errors and omissions insurance policies to address their unique needs. You know you’re in good hands with our award-winning team and dedicated customer service.
What Is E&O Insurance?
This is a type of insurance that protects businesses and contractors against claims that their service is inadequate or that they’ve been negligent while working. It offers similar coverage to professional liability insurance in terms of protecting the insured from expensive lawsuits.
Legal fees alone can cost thousands of dollars, multiply that by the number of years it takes to resolve a case, and you’ll realize how heavy of a financial impact a single claim can incur. As such, it’s essential that you have a risk-management strategy in place to secure your finances against these instances.
E&O insurance covers costs and damages related to the following:
Professional Services Insurance
This involves coverage for faulty or sub-par work as a result of negligence. It means that the work has been done, but it was done incorrectly, or the client was not satisfied with the result.
This type of insurance also covers errors or omissions directly relating to your services, such as instances of providing incorrect advice, mismanagement of resources, unsuitable designs, and failure to deliver a service as promised.
Media and Advertising Insurance
This policy protects you from media liability or advertising injuries. If your client claims you’ve made a mistake while advertising their business, they could sue you for defamation or libel. Once this case goes to court, you’ll be asked to pay hefty legal fees, which could lead to bankruptcy.
Who Can Benefit From E&O Insurance?
This policy typically covers the costs of legal fees and the settlements you might have to pay due to the claim. Specifically, you need coverage if you:
- Provide advice or offer services for a fee; and
- Develop products or devices.
However, do note that this policy does NOT cover:
- Criminal, dishonest, or fraudulent acts;
- Violation of securities; and
- Cost guarantees or price estimates.
Why do Ontario Contractors Need This Insurance Type?
Error and omissions claims can affect a wide variety of industries, especially if you provide a service in exchange for a fee. If you fall under this category, know that the costs borne out of lawsuits can reach hundreds of thousands of dollars.
As such, it is important to add a layer of protection against financial loss.
Errors and Omissions Claims Examples
Claims Example #1
You own an advertising startup in Ontario, and you’re responsible for automatically sending emails to the client’s internal and external database. While updating information in an email, you accidentally hit send to the wrong audience, interrupting your client’s business operations.
The client files a lawsuit against your company after severely impacting their business. Luckily, your E&O policy can cover the legal fees and other expenses, totalling $100,000.
Claims Example #2
As a realtor, you help clients look for properties to buy. While looking at a house, your client asks if adding a garage is acceptable. Without knowing whether it’s actually possible, you agree. Months later, your client sues you for misinformation and professional negligence.
Your insurance policy can help pay for the legal fees borne from negligence, up to $60,000.
Claims Example #3
You manage an event planning business in the area and are about to host a wedding. You realize you overbooked the photographer and need to find a replacement. The client sues you after the wedding, believing they received sub-par photos of the event.
If you have a policy in place, you don’t have to worry about legal costs from this lawsuit, which can cost up to $20,000.
Leading Provider of Errors and Omissions Insurance in Canada
One of the main reasons why we’re an award-winning commercial insurance provider is that we always put our customers first. Contractors Insurance provides specialized policies for its clients with benefits such as:
Personalized Insurance Plans
Because our policies are fully customizable, you only need to pay for the coverage that your business needs. No more costly and unnecessary riders when you purchase from a reputable insurance provider such as Contractors Insurance.
Utmost Transparency on Coverage and Limitations
Our team of experts will walk you through how your insurance policy works. They will also provide full transparency on the triggers and your policy’s limits and exclusions.
Thorough and Straightforward Insurance Education
Our clients are more than our customers—they’re our business partners. And as you’re trusted insurance partner, we’ll help you make the most out of your coverage by being a reliable source of insight for all your insurance needs.
Frequently Asked Questions About Errors & Omissions Insurance
Errors & omissions is another name for professional liability insurance. Both refer to the same policy and cover contractors for mistakes or negligence in their services. The term used only varies per industry.
Directors and Officers, also known as D&O insurance, applies to the directors and officers of your business. Meanwhile, E&O insurance applies to professionals who provide a service in exchange for a fee.
Ready to Get the Coverage You Need?
Contractors Insurance is a top-notch insurance brokerage firm in Canada. We provide risk-management strategies for businesses and independent contractors and put them together to create an effective and unique insurance program for our clients to rely on.
We’ve curated numerous policies for contractors in various industries. You can rest assured that with Contractors Insurance, you’re in good hands.
Contact us today and get started with a quote for errors and omissions insurance!