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A Canada Post strike began on September 26, 2025, which may result in delays in the delivery of insurance documents. We encourage you to use our available online tools to manage your policy.

Errors and Omissions Insurance

Errors and Omissions Insurance Protects You from Professional Negligence Claims

Western Financial Group is an award-winning brokerage. Our business insurance experts understand that your business needs protection from claims of professional negligence or failure to perform your professional duties. 

Our insurance expertise will benefit your business

We are skilled insurance shoppers. We work with Canada’s leading insurance partners to get you errors and omission insurance at the right value to protect your business.

 

Why you need errors and omissions insurance

You need errors and omission insurance to protect your business if you provide advice or offer services for a fee.

You also need errors and omissions insurance if you develop or provide products and devices.

What errors and omissions insurance covers

  • Negligent acts, or errors, or omissions related to your business’s services
  • Failure to deliver a service as promised.
  • Media and advertising services that result in your client getting sued for defamation, libel, or slander.

 

A commercial general liability policy for a business covers bodily injury or property damage caused to others. It typically does not cover a financial loss resulting from professional negligence or advice given.

Examples of who needs errors and omissions insurance:

  • Accounting firms
  • Graphic designers
  • Real estate agents
  • Wedding and event planners
  • Advertising agencies
  • Marketing consultants
  • Financial planners
  • Architects
  • Engineers

You may also hear errors and omissions insurance referred to as professional liability insurance.

Here’s how errors and omissions insurance can help you:

You’re an architect who signs off on additional materials for a structural change to a building without checking to see if the building could support them. During a windstorm, the new materials that you have approved become detached from the building. The building’s owner is suing you for negligence.

Your E & O insurance may help cover the legal fees and other expenses.

How much does directors and officers liability insurance cost?

The cost will be based on factors such as your organization type and industry.

What else will be considered?

  • Organization Type and Size
  • Number of employees
  • Annual and projected revenue
  • Any past claims

Why choose Western?

We’ll get you errors and omissions insurance that’s right for your business. It’s easy, fast, and customized. Get an online quote, text, email, or phone call. Choose what works for you.

FAQ's

What is Errors and Omissions Insurance in Canada?

E&O insurance, also known as professional liability insurance, protects professionals and businesses against claims of negligence, mistakes, or failure to deliver services as promised. It covers legal defence costs, settlements, and damages.

Is E&O insurance required by law in Canada?

Required by professional associations or regulators (e.g., realtors, accountants). Mandated in contracts with clients. Strongly recommended to mitigate risk.

What is tail coverage (extended reporting period)?

Tail coverage allows you to report claims after the policy ends for incidents that happened during the policy period. It’s essential when retiring, closing a business, or switching insurers to avoid coverage gaps.

Does E&O insurance cover defence costs?

Yes. E&O policies typically cover legal defence costs, even if the claim is groundless, this includes lawyer fees, court costs, and settlements (up to the policy limits).

Is E&O insurance tax-deductible in Canada?

Yes. E&O premiums are typically considered a business expense and are tax-deductible for self-employed individuals and businesses.

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