Is Error & Omission Coverage the Same as Professional Liability Insurance Coverage?


If you are a professional currently operating in Canada, chances are that you have heard of either the term “error and omission coverage” or “professional liability insurance coverage” being used in the past. But if you are unsure of what those terms mean, they can easily confuse you — especially when you end up learning that professional liability insurance policies are really the same as error and omission ones!

So why do we describe the same insurance policy in different ways? Well, it depends on the company. Error and omission is considered a more literal version of professional liability insurance, but they both mean the same thing. And of course they both protect you against the same things as well — namely, lawsuits associated with an error or omission that you may or may not have committed.

We say “may or may not have committed” because it is not uncommon for disgruntled clients to sue professionals, not because the latter were guilty of error or omission, but because the clients were unhappy with the services that were provided to them.

Scary, no? As a professional, this should really be your biggest fear, regardless of whether a claim is founded or not.

And let’s not talk about when claims ARE founded. That’s really the stuff that nightmares is made from if you are a Canadian professional.

So next time you go to work and encounter an unpleasant client or patient, remember this insurance policy — it might well end up saving your career down the road. If you don’t want to wait that long, then request your free Canadian professional liability insurance quote today. You’ll see… you’ll thank us one day.


Professional Liability Insurance/PLI

(Errors and Omissions Insurance)

  • Flawed professional advice and services that may have resulted in financial loss to the customer or client.
  • Protects professional individuals or companies from responsibility of the full cost of defending against a negligence claim and damages awarded in such a civil lawsuit.
    • Professional liability insurance covers the costs of judgments, settlements and legal defense.
    • Damages paid under a professional liability policy are typically financial rather than physical.