Errors and Omissions insurance, also called Professional Liability insurance, or E&O, protects your business against claims that your professional services, advice, or recommendations caused a client financial harm.
That includes situations where a genuine mistake was made, as well as those where the claim is unfounded. Legal defence costs alone can run into the tens of thousands of dollars before a case is ever resolved, regardless of whether you were actually at fault.
E&O is distinct from Business General Liability insurance, which covers physical injury and property damage. General liability does not cover financial harm resulting from professional work. If your business provides services or advice for a fee, that gap matters.
Any business that provides professional services, advice, designs, or recommendations to clients carries exposure. Common examples include:
Financial services: Accountants, bookkeepers, investment advisors, mortgage brokers, and financial consultants whose advice or calculations affect a client's financial position.
Legal professionals: Lawyers, paralegals, and legal consultants who can be held liable for missed deadlines, documentation errors, or misinterpretation of contracts.
Technology companies: IT consultants, software developers, and cybersecurity firms whose services carry financial consequences for clients if something goes wrong.
Real estate professionals: Agents and property managers whose guidance and decisions directly affect client transactions.
Consultants and advisors: Business consultants, marketing professionals, HR advisors, and others who provide expertise that clients rely on.
Healthcare practitioners: Certain health professionals face E&O exposure for non-physical professional negligence claims beyond what standard malpractice coverage addresses.
Engineers and architects: Design professionals whose work carries significant downstream consequences if specifications contain errors.
In some regulated professions in Canada, carrying E&O coverage is a condition of licensure or membership in a self-regulatory body. An InsureLine broker can confirm whether your profession has mandatory requirements.
Mistakes happen—even to the best professionals.
That’s why Errors & Omissions insurance, also known as Professional Liability insurance, is so important.
It protects you and your business from claims resulting from your professional advice – for example: if a client claims you were negligent, made a mistake, or didn’t deliver what was promised. And even if the claim isn’t valid, legal fees and potential damages can be financially devastating. No matter your industry—consulting, finance, healthcare, real estate—there’s always a chance of facing a costly allegation. One claim could put your reputation and your livelihood at risk. At InsureLine, we make Errors & Omission coverage easy. Our advisors will help you find the right policy—tailored to your needs and your budget.
Talk to your InsureLine advisor today and move forward with confidence.
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An Errors and Omissions policy responds to claims arising from your professional services. Coverage typically includes:
Legal defence costs: Whether the claim against you has merit or not, your policy covers the cost of defending against it — legal fees, court costs, and administrative expenses.
Settlements and judgments: If a claim results in a settlement or court award, your policy covers the financial damages up to your coverage limit.
Regulatory fines and penalties: In some cases, E&O policies can cover fines or penalties resulting from a regulatory proceeding tied to a professional services claim.
Claims of misrepresentation: Coverage extends to allegations that your advice or representations to a client were inaccurate or misleading.
Breach of professional duty: If a client alleges you failed to meet the standard of care expected in your profession, E&O coverage responds.
What E&O does NOT cover:
Bodily injury and property damage: Those exposures belong under a Business General Liability policy.
Intentional wrongdoing or fraud: Deliberate illegal acts are excluded under every E&O policy.
Employment-related claims: Disputes with employees fall under a separate employment practices liability policy.
It is worth noting that E&O policies are typically written on a claims-made basis, meaning the policy in force at the time a claim is reported is the one that responds — not necessarily the policy in place when the work was done. This makes maintaining continuous coverage important, and it is something an InsureLine broker can help you structure properly.
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