E&O Insurance Coverage Explained
E&O insurance coverage is a liability insurance product that helps protect businesses by safeguarding against losses in the event of a lawsuit due to a negligent act, error or omission as a result of a service provided to a customer for a fee.
Organizations can protect their business assets and reputation, by investing in E&O insurance coverage which is also known as professional liability insurance.
Who Needs E&O Insurance Coverage?
E&O insurance coverage is for anyone who gives advice, makes educated recommendations, designs solutions, or represents the needs of others. Simply put if your organization provides a service to others for a fee you need E&O insurance coverage.
Types of E&O Insurance Coverage
Specialized forms of E&O insurance coverage are also available to professions such as appraisers, lawyers, accountants, actuaries, consultants, real estate agents, insurance agents, home inspectors, notaries etc. E&O insurance coverage policies are designed to cover the legal defence costs that are incurred trying to prove liability or innocence. E&O insurance coverage policies also cover the final judgment or settlement if the business is deemed to be somewhat at fault.
E&O Insurance Policy – What To Expect
E&O insurance coverage kicks in where your other insurance policies like Commercial General Liability policy does not provide coverage, such as for service errors and/or omissions and other professional liability issues. E&O insurance coverage policies also include defence costs, which can be substantial.
E&O insurance policies have both a claim limit and an annual aggregate limit. Limits should be selected based on a number of factors including the amount and type of work being done, who it is being done for, etc.
E&O Insurance Coverage Experts
There are many different forms of E&O insurance coverage / professional liability insurance and multiple factors to consider when purchasing E&O insurance coverage for your business including how to handle tail liability.
Because there isn’t a standard policy, an ALIGNED Advocate can provide expert guidance about E&O insurance coverage and design a policy to meet your specific needs.
ALIGNED Across Canada
100% Canadian owned, ALIGNED is a premiere insurance brokerage that serves more than 1,400 clients across the country. ALIGNED’s offices in Toronto, Calgary and Vancouver are supported by a national operations centre in Cambridge, Ontario. Uniquely within the industry, ALIGNED creates, negotiates and delivers the best business insurance and risk management strategies/solutions to organizations like yours.