Professional Liability (E&O) Insurance
Errors and Omissions (E&O) protection for advice-based professionals, consultants, IT firms, and medical clinics.
What is Professional Liability (E&O) Insurance?
Errors and Omissions (E&O) or Professional Liability Insurance is a specialized coverage designed for business owners who provide professional advice, specialized designs, custom code, or consulting services. Standard general liability (CGL) only covers physical accidents like slips and falls. E&O is designed to cover purely financial losses that clients suffer due to your mistakes, oversight, missed deadlines, or failure to deliver promised professional results.
What Typically Covers
- Allegations of negligence, errors, omissions, or professional oversight.
- Financial losses suffered by your clients due to your work (e.g., custom code crash, faulty financial audit).
- Breach of contract claims arising from failed professional delivery.
- Full cost of legal defense fees, settlements, or damages awarded by a court.
Key Exclusions to Note
- Intentional fraud, misrepresentation, or criminal acts.
- Physical injury or physical property damage (these belong under CGL).
- Cyber breaches or data theft (requires Cyber Liability).
- Warranties or commercial guarantees of business success.
Active Claim Example
“A software consulting firm is hired to develop a custom retail checkout system. Due to an overlooked bug in the code, the online store crashes during Black Friday weekend, causing the client to lose $180,000 in retail revenue.”
Why QuoteMatch?
We don't generate automated computer estimates that don't hold up. We match your application with actual RIBO-licensed commercial brokers in Ontario who specialize in underwriting Professional Liability (E&O) policies. Brokers compete to win your account, providing the best combination of pricing and limits.
Official Resources
To learn more about standard business insurance policies and consumer definitions in Canada, you can read the official Insurance Bureau of Canada (IBC) Guide to Business Coverage.
Professional Liability (E&O) Insurance FAQs
- Who needs Errors & Omissions (E&O) insurance?
- Any business that bills for advice or service: IT developers, engineers, architects, management consultants, accountants, bookkeepers, and real estate agents.
- How is Professional Liability different from CGL?
- CGL covers physical damage (e.g., you spill coffee on a client's laptop). E&O covers economic damage (e.g., you give a tax recommendation that costs a client $50,000 in government penalties).
- Is E&O on a claims-made basis?
- Yes. Virtually all E&O policies are 'Claims-Made' meaning the policy must be active both when the error occurred AND when the claim is officially reported to the insurer.
Get Competitive Professional Liability (E&O) Quotes
One application, and specialized RIBO-licensed brokers shop your coverage to secure the best rates in Ontario.