Errors and Omissions Insurance (E&O)

E&O is the insurance of choice if you need to cover yourself against professional mistakes. This includes things like your software crashing, giving poor advice or missing a contractual deadline.

Because this insurance coverage is based on your specific line of work, the protection is different from one industry to the next. For example, a software company would want protection against the software crashing or a security breach, while an accountant would want protection against mistakes in a tax calculation.

Who Needs E&O Insurance?

Most professionals should consider E&O Insurance. In some industries (e.g., medicine, dentistry) this type of insurance is referred to as Malpractice Insurance.

A few examples situations that will require you to get E&O insurance are

  • Your professional association requires you to carry E&O insurance to be licensed (e.g., insurance brokers, doctors)
  • Your customer requires a certain level of coverage (e.g., $250,000 worth) as part of the contract
  • You feel that a potential for loss is too great to not purchase insurance

What is covered? What is not covered?

E&O policies can vary a lot, but the following are typical coverages:

E&O Insurance may cover…

  • Making a mistake that costs you customers money, time, or brand reputation.
  • Giving bad advice
  • Missing an agreed upon deadline
  • Failing to meet industry standard expectations of quality

E&O does not cover…

  • Criminal activity
  • Fraud and intentional acts
  • Bodily injury
  • Property damage

About Zensurance

Zensurance is Canada’s leading online commercial insurance broker. We offer a full range of insurance products to small businesses, with a particular focus on startups. We understand what it is to be a startup, and know the most common risks of which you should be aware. Based on that (and a lot of analytics), we recommend the ideal insurance coverage for your business.

If you have questions about insurance, please visit us as www.zensurance.ca or email us at info@zensurance.ca and we will find the answers for you.