What Is Errors & Omissions (E&O)?
Errors & Omissions (E&O), also called Professional Liability, covers claims that your professional advice, design, or service caused a client financial loss. It is essential for consultants, engineers, brokers, and other advice-based businesses.
E&O responds to economic loss from your professional work: a flawed design, a missed deadline, a calculation error, or advice that did not perform. It also pays to defend you, which matters even when an allegation is groundless, because professional disputes are costly to fight. It does not cover bodily injury or property damage, which belong to CGL, and it does not cover fraud or intentional wrongdoing.
E&O runs on a claims-made basis. The policy that responds is the one in force when the claim is made, not when the work was done. Coverage for past work reaches back only to your retroactive date, and if you retire or cancel without an extended reporting period, often called tail coverage, a claim that surfaces later can land uninsured. Continuity matters more with E&O than with almost any other commercial policy.
Many Ontario professionals cannot practise without it. The Law Society, CPA Ontario, RECO, FSRA and several health colleges set mandatory coverage for their members, and PEO requires engineers to disclose to clients whether they carry it. Even where it is optional, client contracts and RFPs routinely require proof of $1 million to $2 million in coverage on a certificate of insurance before work starts.
Roughley arranges E&O through our professional liability insurance practice, matching limits to your contracts, your regulator, and the way your firm actually works.
Frequently asked questions
Who needs errors and omissions insurance in Ontario?
Any business or professional who gives advice, designs, or delivers a service for a fee. In Ontario that commonly means engineers, accountants, consultants, IT and software firms, real estate professionals, and design-build contractors. Many client contracts and professional bodies require it.
What is the difference between E&O and general liability?
General liability (CGL) covers bodily injury and physical property damage. Errors and omissions covers financial loss caused by your professional advice, work, or a mistake or omission. Most service firms need both, because they protect against different kinds of claims.
How much does E&O insurance cost in Ontario?
It depends on your profession, revenue, the limit you carry, and your claims history, so premiums range widely. As an independent broker we shop multiple markets to match the coverage and price to your actual exposure rather than a one-size quote.
Is errors and omissions insurance the same as professional liability?
Yes. Errors and omissions (E&O) and professional liability are two names for the same coverage. Some professions also call it malpractice insurance.
Does E&O insurance cover work I did before buying the policy?
Only if the work falls after your retroactive date, the earliest date your claims-made policy reaches back to. Work done before that date is not covered, which is why you should never let E&O lapse or reset the retroactive date when switching insurers.
Questions about Errors & Omissions?
Our Ontario brokers can explain how it applies to your policy.
Talk to a Roughley broker