Shield Your Business from Claims with Errors and Omissions Insurance in Alberta
Protect your company should a claim of inadequate or negligent work be made against you.
Errors and Omissions (E&O) Insurance (also known as Professional Liability Insurance) is coverage for anyone who gives professional advice, makes educated recommendations, designs solutions for or represents the needs of others.
In the event a claim is made against you regarding advice or a service you provided, E&O insurance can cover your costs. Service professionals, such as accountants, financial planners, software developers, real estate agents, contractors, engineers, lawyers etc., are prime candidates for carrying E&O insurance.
Errors and Omissions Insurance FAQ
What is Errors and Omissions Insurance?
Errors and Omissions (E&O) insurance is a type of liability insurance that provides coverage for professionals who provide advice or services to clients. This insurance protects professionals from claims made by clients for mistakes, negligence, or failure to perform their professional duties.
Who needs Errors and Omissions Insurance?
Those who provide advice or services to clients, such as consultants, accountants, lawyers, real estate agents, and insurance brokers, should consider getting E&O insurance.
Is Errors and Omissions Insurance mandatory in Alberta?
No, E&O insurance is not mandatory in Alberta. However, some may be required by their professional regulatory bodies to carry this type of insurance.
What does Errors and Omissions Insurance cover?
E&O insurance typically covers legal costs and damages that arise from claims made by clients due to errors, omissions, or negligence in the services provided by the insured professional.
How much Errors and Omissions Insurance do I need?
The amount of coverage you need depends on the size and nature of your business and the type of services you provide. It is recommended to consult with an insurance broker to determine the appropriate amount of coverage for your specific needs.
How much does Errors and Omissions Insurance cost?
The cost of E&O insurance varies depending on the type of services provided, the size of the business, and the level of coverage required. CMB can obtain quotes from several insurance carries to compare prices and coverage.
How do I purchase Errors and Omissions Insurance?
You can purchase E&O insurance from an insurance broker who specializes in professional liability insurance (like CMB). It is recommended to do research and obtain quotes from several providers to ensure you are getting the best coverage at a reasonable price.
What should I do if a claim is made against me?
If a claim is made against you, you should immediately contact your insurance provider to report the claim. Your insurance provider will guide you through the claims process and provide legal representation if necessary.
An Errors and Omissions Example
Anyone who provides professional advice or services should consider Errors and Omissions coverage.
Consider this example of a case where E&O coverage protects your business:
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. Thankfully Tracy had an E&O policy, which she purchased when she started her company a few years ago.
Tracy’s policy was designed 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 and legal fees and providing peace of mind.
What does E&O Insurance cover?
Typically coverage includes third party financial loss (without bodily injury or property damage) that results from:
- Poor, incorrect or faulty products that you manufacture, handle, sell or distribute
- Mistakes
- Missed Deadlines
- Negligent Service
- Oversights
How much does E&O Insurance cost?
Cost varies according to risk factors such as:
- Company size
- Industry
- Location
- Past lawsuits
Contact CMB Insurance Brokers today to learn about the errors and omissions solution that’s right for you.
What types of Business Insurance do I need?
There are many types of insurance policies that our experts can advise you on and package to meet your specific needs, such as:
- Commercial General Liability
- Commercial Property Insurance
- Business Interruption Insurance
- Pollution Liability Insurance
- Professional Liability Insurance
- Product Liability Insurance
- Equipment Breakdown Insurance
- Commercial Auto Insurance
- Cyber Insurance