ERRORS AND OMISSIONS INSURANCE


Liability protection for professional service providers

In today’s increasingly litigious environment, professionals are often subject to allegations brought by on unhappy clients or other parties who feel that they have been harmed by the professionals’ actions – or inactions. Even when such claims are frivolous, defence costs can devastate uninsured professionals. Additionally, many potential clients require that a professional services firm carry errors and omissions insurance before they will agree to hire the firm.

We offer professional liability or Errors and Omissions coverage for many professionals.

Arbitrators/mediators
Architects

Auctioneers
Bookkeepers
Business associations
Claims adjusters
Consultants
Court reporters
Data processors
Employment agencies
Educational institutions
Executive search firms
Insurance brokers

Management accountants
Market researchers
Non-profit organizations
Personal counselors
Resume services
Title searchers
Translators
Travel agents

and many more

Not all miscellaneous professional liability policies are the same, and policy comparisons can be misleading. 

Claims examples
Tax discrepancies

A bookkeeper was retained by ABC Company to prepare GST and provincial tax statements for its client, a small manufacturer. Subsequently, the Canada Revenue Agency (“CRA”) issued a notice to ABC Company for certain tax discrepancies over many years, totaling $250,000, based upon certain misinterpretations of the Income Tax Act regarding foreign sales. ABC Company commenced an action against the bookkeeper claiming that as a result of the bookkeeper’s negligence, it sustained damages in the form of interest owed to the CRA as a result of the tax discrepancies.

Unsatisfactory auction revenue 

An auctioneer was hired to auction off a large estate containing several unique pieces. When the auction failed to bring what the heirs of the estate had hoped for, they sued the auctioneer claiming that he had inadequately advertised the auction by not listing some of the key pieces in promotional brochures for the auction. If compensatory damages are found owing by the auctioneer, such damages may also be covered under the policy.

Mistaken marketing materials 

A management consultant’s provided event management services to a trade association. During the course of the event preparation, errors were made in the advertising documentation sent to the participants relating to the scheduling and topics to be addressed by the event’s speakers. Consequently, all the advertising documentation had to be reprinted and resent, which generated substantial additional costs. The trade association sought to hold the insured liable for the errors and commenced a lawsuit for damages consisting of the cost of reprinting the advertising documentation.