Professional Liability Insurance covers professional errors that could be made resulting in a financial loss to a client or stakeholder. It is also known as Errors and Omissions Insurance (E&O).
It can also include Employment Practices Liability Insurance and Directors and Officers Insurance.
The focus of this page is strictly on Errors and Omissions protection for professionals (ie Medical, Legal, Financial, Engineers, and the like).
Doesn’t my Business Liability Insurance Cover This?
Commercial General Liability (CGL) policies do not cover errors and omissions. A CGL policy focuses on bodily injury, property damage and specifically excludes professional liability. For this reason E&O is important for any business or professional that could make an error in professional service that leads to a financial loss. It insures the business owners’ mistakes as well as those made by employees and sub contractors.
When a business or professional is hired they are expected to have the knowledge, experience and training to perform to the standard of their profession. If they fail to perform they can be held responsible for harm caused. The E&O policy protects the insured against financial losses from lawsuits filed by their clients against them. It covers the legal defense as well as the settlement.
Return to Business Insurance Canada (leave Professional Liability Insurance if you just want some business insurance information.
Note: Always speak with a licensed insurance professional about your specific situation. This insurance information is general in nature and the policy wordings always take precedence. It is possible that there are errors and omissions in this website and www.canada-insurance-source.com, or its authors, take no responsibility.
Keep in mind that insurance licensing, legislation, and policies often vary by province and most certainly by country. Canada Insurance Source is a free information source. So use this site to gain a general understanding of insurance with your own area and situation in mind. Make sure you review the "please read" page. Always speak with a licensed insurance professional about your specific situation.
Always speak with a licensed insurance representative about your specific situation.
This site is general in nature and there may be errors or ommissions