Why Do I Need Errors and Omissions Insurance?

Tracy, the owner of an Ontario-based event planning firm, was hired to provide event management services to a trade association holding its annual convention in Toronto.

During the course of the event preparation, errors were made in the advertising flyers sent to the convention attendees. The flyers incorrectly listed the speaking times and topics, making the flyers unusable. All of the flyers had to be reprinted and resent to the attendees, generating substantial additional costs in printing and postage.

The trade association sought to hold Tracy liable for the losses, and they filed a lawsuit against her and her event planning firm. But Tracy had an errors and omissions (E&O) liability policy, which she purchased when she started her company a few years ago.

Tracy’s E&O policy was written to cover service errors, contract performance disputes and defence costs. Therefore, the costs of the lawsuit brought against Tracy’s company were covered by her insurance policy, saving Tracy a lot of money in litigation costs.

E&O insurance is appropriate coverage for anyone who gives advice, makes educated recommendations, designs solutions or represents the needs of others. Service professionals, such as accountants, computer consultants, software developers, planners, real estate agents, contractors, etc., are prime candidates for carrying E&O insurance.

If you think you would benefit from Errors and Omissions Insurance (E&O liability coverage), contact call CMB Insurance Brokers at 780.424.2727 or click here to get a quote.