If you are providing any type of service, consulting, or advice that impacts another parties’ decisions, you need Errors and Omissions Insurance (also referred to as E&O or Professional Liability Insurance) to protect you in the event of a lawsuit. Chances are, some of the clients and partners you work with already make E&O a contractual obligation.
Business professionals such as physicians, designers, manufacturers, accountants, engineers, IT and media consultants are expected to meet the high standards of care that exist in their industry. As a professional, you are held up to be an expert in your field and if you fall short of your client’s expectations, you could be stuck with costly legal expenses. While this insurance policy is more pertinent to some industries, a variety of individuals and companies can benefit from this type of coverage.
What an errors and omissions policy can provide coverage for:
- Services that were promised, but undelivered
- Work that is delivered after the agreed deadline
- Failing to provide advice that was expected by a client
- Accusations of negligence
- Dissatisfied clients (e.g. if they experienced financial loss or experienced loss of reputation)
What an errors and omissions policy cannot provide coverage for:
- Customer and employee injuries
- Property damage
- Fee disputes
- Employee discrimination lawsuits
- Vehicles used for business
- Claims filed prior to when your policy was active (unless it is within the retroactive date stated in your policy)
Your errors and omissions policy should make up part of a comprehensive insurance program that is specific to your industry. Some other coverages you should consider for your business are commercial general liability, commercial property, business interruption and more.
What are ways I can prevent E&O claims?
- Have a thorough written contract that includes what will and will not be done, as well as the fees involved
- Communicate with your client throughout the job or contract you are working on
- Double-check your results by having a quality control procedure
Whether you are a professional running your own small business or working within a larger firm, the expert brokers at Fuse Insurance will help make sure you have E&O coverage that minimizes financial burden and helps protect you and your business. We offer customized errors & omissions coverage for all types of businesses across Canada, whether you are seeking E&O coverage in BC, Alberta, Saskatchewan, Manitoba or Ontario. Get in touch with our team at 1-866-387-FUSE (3873) or by visiting our contact page.