Professional Liability InsuranceWhat is Professional Liability Insurance?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.
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