Errors and Omissions Insurance

Name: Errors and Omissions Insurance
Brand: Zensurance
Rating: 4.8 (2005 reviews)

Alleged or otherwise, mistakes are inevitable. That’s why Errors and Omissions Insurance is critical.

This policy provides financial coverage in case of accidental errors or alleged negligence.

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Trusted by over 300,000 Canadian small business owners!

Save up to 35% on your insurance

Get the best insurance quote in a few clicks!

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Zensurance - errors and omissions insurance

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Errors & Omissions Insurance, Explained.

What does it cover?

Errors and Omissions Insurance is a type of professional liability insurance, which protects professionals from client claims alleging financial loss due to a service you provided, as well as lawsuits alleging misconduct, negligence, errors, omissions, and failure to deliver services as promised.

Errors and Omissions Insurance typically includes coverage for legal costs and damages related to the following coverage areas:

Professional Services: Coverage for Negligent Acts or errors or omissions related to your services, or failure to deliver a service as promised.
Media and Advertising: Media services resulting in your client getting sued for defamation, libel, or slander.

How much does E&O insurance cost?

For an Errors and Omissions Insurance policy with a limit of $100,000, you can anticipate spending on average $250 annually.

The following factors are typically taken into consideration when determining the cost of your premium:

Industry and Services Offered
Years of Experience
Number of Employees
Annual and Projected Revenue
Business Size and Location

In the online quote application, we ask your business some questions to understand your coverage needs better.

Learn more about E&O insurance costs.

Who needs Errors and Omissions Insurance?

You need Errors and Omissions Insurance if:

You provide advice or offer services in exchange for a fee.
You provide or develop products or devices.

Depending on the profession, it may be referred to as Professional Liability Insurance or Medical Malpractice Insurance. For some occupations, carrying E&O insurance is required to practice.

How much coverage do I need?

Canadian small business owners often ask how much coverage they need. Ultimately, you should purchase as much coverage as you can afford. When determining how much coverage to buy, consider the size of your business and employee base, your industry and profession, and your level of risk exposure.

Speak with one of our brokers about customizing your policy to meet your specific business needs.

What is not covered by Errors and Omissions Insurance?

Errors and Omissions Insurance typically does not provide coverage for:

Criminal, dishonest, or fraudulent acts (you need Crime Insurance);
Violation of securities acts;
Cost guarantees or price estimates; or,
Incorrect estimates of profits or economic returns.

What is the difference between General Liability and E&O?

Commercial General Liability Insurance covers third-party property damage or bodily injury, whereas Errors and Omissions Insurance covers lawsuits alleging neglect, misconduct, or failure to deliver advice or services as promised. Together, they form a comprehensive insurance policy package.

Common E&O claims scenarios

Problem: You run an AdTech startup in Ontario, and your platform is responsible for automatically deploying emails to a client’s internal and external database. When updating the client’s preferences, you accidentally deploy an email to the wrong audience, causing severe interruption to their business operations.

Outcome: The client successfully sues you for severely impacting the relationship with their clients. Your Errors and Omissions Insurance may cover the legal fees and any other expenses, totalling $100,000.

Problem: You’re a realtor helping a client buy their first home in Vancouver, BC. While looking around a property, the client states they’d purchase the house if it was possible to build a garage on the property. Without thinking, you say it’s certainly acceptable to add a garage. Months later, after the purchase, the client sues you when they were declined for the permit to allow to build.

Outcome: The client sues you for professional negligence. Your E&O Insurance may cover the legal fees and any other expenses, totalling $60,000.

Problem: You’re the owner of an event company in Alberta. Days before hosting a wedding, you realize you’d overlooked booking the photographer that was requested a month earlier and scrambled to find a replacement. After the wedding, the client sues you for your negligence after believing the pictures to be below-par to what they would’ve got with their original choice.

Outcome: Your Errors and Omissions Insurance could cover the legal fees and any other expenses, totalling $20,000.

Frequently Asked Questions

What is the difference between Errors and Omissions (E&O) Insurance and professional liability insurance?Zensurance

What is the difference between Errors and Omissions (E&O) Insurance and professional liability insurance?

Errors and omissions is a popular name for professional liability, they both refer to the same policy and provide coverage to professionals or consultants for errors and omissions in their services. In some industries, it’s also commonly known as malpractice insurance. Regardless of what you refer to it as, it may be important to protect your business practice with this policy.

What is the difference between D&O and E&O insurance?Zensurance

What is the difference between D&O and E&O insurance?

The difference is that D&O (Directors and Officers) Insurance only applies to directors and officers of a company and E&O (Errors & Omissions) Insurance applies to any professional who provides a service. Both policies provide coverage for errors and omissions borne out of negligence.

Do I need E&O insurance if I work from home?Zensurance

Do I need E&O insurance if I work from home?

Yes, as long as you provide a service to a client, regardless of your location, you can be sued for errors and omissions arising out of negligence. It is best practice to protect yourself with insurance as legal costs and settlement fees are devastating for small businesses and freelance professionals.

Other business insurance coverage options to consider:

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Our most recent reviews

See what our small business customers have to say about us.

4.8
3000+ Google Reviews

During my Professional Liability (E&O) insurance purchase I dealt with Keagan. He made the process fast and easy. I got exactly what I wanted for a reasonable price.

Lynn MacKinnon
9/09/2022

I'm using Zensurance with my small consulting business for commercial general liability insurance and professional errors and omissions insurance. I've been pleased with all of my interactions with their helpful staff, and have found their pricing to be competitive with other similar online brokers.

John Turecki
7/18/2022

Super easy, good service, affordable E&O

Karyn H
6/24/2022
Josh Heo responded quickly to my query for E&O insurance. He answered all of my questions, helped me decide what I needed, and got the process completed faster than I thought possible. Good communication, good support, thank you for you excellent customer service!

damon rose
2/14/2022

Zen provides a great service for insurance for consulting services organizations. They are very professional and their use of technology and well defined processes make it a very easy experience to do business with them. Customer service is delivered in an excellent manner. I highly recommend them for anyone looking for E&O, General Liability or other insurance needs for their business.

Philip Mackasey
11/27/2021

I had to obtain $2M Professional Liability / Errors and Omissions insurance (software consultancy) on very short notice. After filling out a few different quotes, I happened upon Zensurance who were significantly cheaper than other Canadian options.Justin Tisdale was assigned as my broker and was extremely responsive, attentive, and professional throughout our interactions. I would strongly recommend using him if you are in a similar situation.

Jedidja Bourgeois
11/20/2021
Keagan W. was super helpful when I was setting up my E&O business insurance. I was new to all of this, asked tons of questions, and not only was he quick to respond, but informative as well. Thanks for all your help, Keagan!

Cissy Wu
10/29/2021

They made it very easy for a new business to get E&O, no fuss just efficient and friendly. Thank you

Nichola Taylor
9/17/2021

I just setup my GL and E&O coverage with Zensurance. All done on-line, all "frictionless" and in plain language. All done IN MINUTES, from the time I accessed their website to the time I paid for the policy. While digitally signing the documents, I got pro-actively called by Justin Tisdale, just to check if I need additional assistance. Nice!!!

Witold Dziewałtowski-Gintowt
7/22/2021