As a professional offering advice or services, you face vulnerabilities, which can put your business at risk if you are not prepared. In the case that you do face a lawsuit, having errors and omissions liability insurance in Canada can help to absorb the costs involved.
What is Errors and Omissions Insurance?
Errors and Omissions Insurance, often called Professional Liability Insurance, offers protection to service-based companies and individuals in the case that claims are filed against them. These claims can include:
- Professional negligence- committing an error while providing a professional service
- Misrepresentation- presenting information a client sees as misleading
- Libel and slander- when the client feels their reputation has been harmed
- Inaccurate advice- providing a client with incorrect information
- Document loss- when a client’s documents are misplaced
When claims occur, errors and omissions is a type of liability insurance which will cover costs from damages awarded in result of the claim and/or costs for defending yourself against the claim. The main types of claims this insurance coverage aims to protect against are failure to perform, causing financial loss for clients, and error or omission in the product or service, which was provided. This type of insurance is required by law in some places and is common in a wide range of professions from legal, social work, finance to IT.
How Can Errors and Omissions Liability Insurance Help Me?
An unexpected lawsuit can be very costly to a professional. Regardless of how excellent your services are, there is the chance you will still have a client who places blame on you. Errors and omissions insurance can help because it provides a safety net in the case that such a claim does occur. The insurance is helpful because it absorbs the costs involved in the lawsuit, provides peace of mind in day-to-day work, and being prepared shows professionalism to clients.
Let’s take a look at a situation where errors and omissions insurance could help someone in the IT field as an example. An IT Consultant is working on setting up the network systems for a client and experiences technical difficulties that cause down time for an entire wing of the office. The down time ends up costing the client money, and so the client ends up filing a claim against the IT Consultant to regain what they have lost. This can be very stressful when you have may not have a plan of action to respond and/or pay. However, with errors and omissions insurance, you can contact your provider and inform them of the situation. This coverage allows you to rest assured that you have prepared for worst case scenarios and can defend yourself and pay damages if needed.
Get E&O Insurance in Canada
EasyCover offers errors and omissions insurance plans for both individuals and businesses working in Canada. Coverage can be arranged within minutes so there is no waiting or hassle. If you would like an insurance quote, you can call us at EasyCover on our toll-free line 844-439-2683 or request your free insurance quote online..You can also email us at email@example.com should you have any questions. Don’t risk your business and livelihood by offering services or advice without protection. Just like driving without a seatbelt, whether it is your fault or not, collisions happen. For Canadian professional service providers and consultants, your safety belt is EasyCover errors and omissions insurance.