There are many professions in Ontario where practitioners are required by law to have professional liability insurance. However, when it comes to errors and omissions insurance, Ontario service providers may need it even if it is not mandatory. If you have an advice or service-providing business in exchange for a fee, or if you develop products, devices or components, you likely need errors and omissions insurance. E&O insurance will protect you against claims from clients of mistakes  they believe you should be legally responsible  loss you caused them from an alleged error. Ontario professionals and business owners can get the right coverage by calling the experienced brokers at Morison Insurance who will address their needs and provide an errors and omissions insurance quote.

• Always have a written contract explaining what will be done, what will not be done, and the fees.
• Communicate with your customers throughout the job and manage expectations.
• Have a quality control procedure in place and check the results.

• When the policyholder commits illegal activities or actions 
• An act of discrimination against a client, potential client or other claim-maker
• Willfully doing an inadequate job or improper work or any other intentionally negligent act.
• Property damage to a client or third party
• Bodily injuries to your clients or anyone else
• Your own employee suffering a work-related injury.
• Actions or cases that began before the policy was put in place.
• Any other incident that is covered by any other form of business or commercial insurance. An example of this would be damage done to your clients by a third-party cybercrime, which would be covered by cyber liability insurance.

CGL covers tangible damages bodily injury and property damage. E&O covers non-tangible financial losses from professional errors and omissions. Both include defence coverage. Most service-based businesses need both; they cover complementary but non-overlapping exposures.

It should, however, be noted that E&O coverage generally has strict reporting timeframes. 

If you have any questions about either of these types of coverage, require any clarification, or have any other concerns, your Morison Insurance broker will be happy to address these for you.

Generally, yes, legal defence and court costs are covered by errors and omissions insurance if the legal action results from an insured peril that falls under coverage and policy terms. Ontario residents should note, however, that some E&O insurance policies also include defence expenses within the limit of liability set by the insurance plan. This,, limits the amount of insurance that may actually be available to pay a claim. Some policies also exclude punitive damages. It is essential to ensure that coverage fits your exposure because the wording on each policy can vary. For more information on this coverage, contact our Morison Insurance commercial brokers. We are here to help you navigate these difficult complexities and will do everything we can to offer you the best coverage possible.

Most E&O policies are claims-made, not occurrence-based. A claim must be made and reported during the active policy period. The retroactive date determines how far back prior acts are covered, incidents before the retroactive date are not covered. Maintaining continuous coverage without gaps is important; a lapse can leave you unprotected for past work.

Yes. You do not need to be an incorporated company to be covered by errors and omissions insurance. If you are an independent contractor, ensure that your broker knows and understands how it impacts your sole proprietor business so that they can provide proper coverage to protect you from claims by clients and third parties. It is also worth noting that, as with all policyholders, independent contractors are legally required to do everything within their power to prevent an accident, damage or other harm from occurring to clients or third parties.