I often get inquiries about professional liability from companies and individuals who find themselves in the situation where they have never had the coverage before and are now required to have it due to contract requirements. They often do not seen the need for the coverage since a claim has never happened to them – believe me, i understand this completely! The simple fact of the matter is different. We live in a litigious world and as professionals we are often held to a higher standard for our specialized knowledge and thus the need for errors and omissions insurance liability coverage.
For those of us who are unbelievers, that hold the attitude that it will never happen to us, here are some claim examples that we can turn to in order to demonstrate that errors and omissions liability insurance (a.k.a professional liability insurance) is not only relevant in our lives but sorely needed!
Example 1:
An auctioneer was hired to auction off a large estate containing several unique pieces. When the auction failed to bring what the heirs of the estate had hoped for, they sued the auctioneer claiming that he had inadequately advertised the auction by not listing some of the key pieces in promotional brochures for the auction. Compensatory damages would be covered on an errors and omissions insurance policy
Example 2:
A management consultant for a trade association provided services that included event management related to an international seminar hosted by the trade association. During the course of the event preparation, errors were made in the advertising documentation sent to the participants relating to the scheduling and the topics to be addressed by the seminar’s speakers. Consequently, all the advertising documentation had to be reprinted and resent, which generated substantial additional costs. The trade association sought to hold the management consultant liability for the errors and commenced a lawsuit for damages consisting of the cost of reprinting the advertising documents
Professional errors and omissions is a real risk for anyone performing a specialized service. Whether you have ever had a claim in the past or not, the future will be full of litigation as more and more people are aware of their rights and seek compensatory damages for errors. Errors and Omission liability insurance forms part of your defense against such claims.
I am looking for General Liability; $2M coverage for Errors and Omissions. Our company is a staffing agency providing contracting to the Federal Government. Please provide a quote ASAP.
Thx.
Wendy
Thanks for your inquiry. I have sent the necessary questionnaires to you for review.
I am a professional engineer in Ontario and am the only employee of my corporation. I would like a quote on E & O insurance.
Thanks
Check your email, i have sent the questionnaire. Thank you for your inquiry, i look forward to assisting you!
Hi, I am a Financial Analyst providing accounting services (student of CGA). I am in the process of Incorporation and i will be the only employee in the corporation. I am looking for E&O insurance quote.
Thanks
I am a professional freelance translator in Toronto, Ontario and am the only employee of my self-employment business. I would like a quote on professional liability aka E & O insurance asap.
Thanks a lot.
I am a consultant, doing electrical inspections for various companies. I have E & O insurance and Commerial General Liability. Also incorporated. What insurance would I be required to have working on other company job sites?
It would seem that you have the appropriate coverage (disclaimer: i have never underwritten your business nor have i seen your policy so i don`t know 100%). Generally speaking, having both the errors and omissions and the general liability are enough for the exposure as your describe it. Personally, as a sole proprietor, i would look into disability coverage of some kind … if you cannot work, you definitely need a vessel to assist in income replacement.
hope this helps!
I will be starting my own home inspection business in the near future and I am trying to get an idea of what type of coverage I would need for E&O and what it would cost. Thanks in advance
i can help you out but will need to send you an app. Typically, errors and omissions policies can start as low as $1,000 on your own and the sky is the limit. It totally depends on so many factors. Your association will have the minimum requirements for coverage. Feel free to contact me and i can get your the questionnaires required to obtain numbers for you
I am in the planning process of opening a virtual consulting business in PEI. I am having a very difficult time trying to find an insurance provider that offers E&O insurance. Can you point me in the right direction? Thanks so much!
Hi Tracy,
I will send you an email that may help
Hi, How much E&O insurance does my new firm need? We do multi-discipline, process, mechanical, electrical, instrumentation/controls, civil engineering for the oil & gas industry. Some work ends in construction, but others are only at the front-end phase and our services only result in an estimate of project costs. Anticipated revenue in year 1 are 2-5mil? How much E&O do i really, practically need? What if our business expands to $20mil of revenue? Thanks,
Hi Ian,
That is a great question that I hear often. I will comment to your specific questions privately but I wish to speak to this in a general way. Determining the amount of coverage (be it errors and omissions or general liability) comes down to determining your exposure to risk, what the financial loss could be and what it will cost to transfer that risk to and insurance company (unless you choose to retain that risk internally). There is also a contractual factor to consider. Some errors and omissions limits are stating in contracts that you enter into with clients, government bodies etc. Errors and omission insurance isn’t the type of coverage that generally sees small claims. They are either non-existent or big. I can say that you should start with $1,000,000 but when obtaining quotes, an insurance may only offer you $500,000. As revenue increases, exposure to risk increases but it doesn’t necessarily mean that limits increase. You could have only $2,000,000 in business but have a $20,000,000 exposure.
The best course of action to take is to hire on someone who is trained as a risk manager to consult with you (hint hint, nudge nudge). The person can assess your business, your exposure to risk and offer advice for a nominal fee. Once that work is completed, you can choose to use them (if they are licensed to sell insurance) to obtain quotes for coverage or someone else. Since this person will have an intimate knowledge of your business (they can sign non-disclosure agreements), it would behoove you to work with them as they would have your best interest in mind (you have paid them for their expertise and unbiased opinion).
I hope this helps!
Hello,
I need $2,000,000 in E&O Insurance as I have my Life Insurance License…can I get a quote?
Hi Ashley,
Yes i can certainly assist you. Please check your email for the form that i need completed.
Thanks!
Claudio
I have a software development company and need E&O insurance.
Can you help me?
Cheers
Brian
yes Brian,
I can certainly assist you. Please check you email for my response.
Claudio
I am a medical student.
I was confirmed to begin an elective in Canada, which is scheduled for a 1 month duration. Can you please let me know if you have this type of insurance.
If so, if it is possible, would you be able to provide me with a quote, as to how much it would approximately cost to purchase malpractice insurance for 1 month?
Hi, Claudio,
I am going to work as a contract software developer, I need E & O insurance for this job. Can you help?
Thanks,
Sharon
yes very much so! I will contact you via email.
Hi Claudio
I’m starting a contract as a consultant / software developer and I need some advice on Errors and Omissions Insurance.
Can you contact me?
Cheers.
Doug.
I’m starting a contract as a IT consultant / Project Manager and I need some advice on Errors and Omissions Insurance.
My contractor has asked me to take insurances.
I am in Quebec and am the only employee of my corporation. I would like a quote and advice on E & O insurance.
thank you for your inquiry. unfortunately, i do no operate in Quebec and so i cannot offer you a quote. I can give you information about errors and omissions insurance but i think you should consult the broker local to you who can guide you the whole way.
Looking for a PLI quote for paralegal coverage as required by the law society.
1,000,000 min and 2,000,000 in the aggregate.
thankyou
Thank you for your inquiry…sending email shortly.
I’m a life insurance agent in Ontario, Canada. I need an error and omissions insurance with $2M liability. Please provide me with a quote. Thanks
please email me and i will provide you the application required to obtain a quote.
I want to get a 1 million $ E&O insurance for my life insurance business. I am a LLQP life insurance agent.
check you email : )
Hi I need errors & omissions insurance for $2m for my software consulting business. Please send me the applications or contact me.
Hi. We are a small Process Serving business.
We serve and file legal documents. I’d like a quote on professional liability insurance/ errors and omissions coverage.
Thank you in advance.
Hi Claudio
I’m working as a software consultant. I have my company incorporated; I and my wife are the only 2 employed in the organization. I need some advice on Errors and Omissions Insurance up to 1 million coverage.
Looking forward for your reply
Cheers
Vinod
Hi Sorry for the delay in responding, i just saw this! If you still have questions, please feel free to email me or send me a request through the contact forms (it will keep our discussion private).