Did you know that your business may be held liable if one of your clients suffers a financial loss as a result of an error or omission on the part of one of your employees? If your business provides any kind of advice that could have financial ramifications, then it is important to protect yourself and your company against legal action from dissatisfied clients.
At Jeffery & Spence, we can help you understand whether Errors and Omissions Liability Insurance is a smart fit for your business. Whether you are an independent consultant, an agency owner, or a partner at a professional services firm, our team can provide a commercial insurance policy to keep you protected.
Our team will start by meeting with you to learn more about your business, then we’ll work to find you a cost-effective insurance plan that will allow you to receive the most value at the lowest cost.
Our Years of Expertise
Since 1927, the team at Jeffery & Spence Insurance Brokers have provided quality insurance services to a variety of businesses in Guelph and across Ontario. Our professional brokers will provide you with expert advice and guidance, and will locate the right business insurance coverage for you.
Who Needs Errors and Omissions Liability Insurance?
Errors and Omissions Liability Insurance is an important type of coverage for any kind of business that provides advice to its clients, whether the advice is related to accounting, marketing, IT, HR, or personal matters. This type of insurance is generally required in addition to your standard Commercial General Liability policy.
Here are some examples of professions and businesses that should consider Errors and Omissions Liability insurance coverage:
- Business Consultants
- HR Consultants
- Insurance Brokers
- Law Firms
- Life Coaches
- Management Consultants
- Marketing Agencies
- Media Agencies
- Relationship Coaches
- Tech Companies
- And more
Why Do I Need Errors and Omissions Insurance?
While Errors and Omissions can protect you from the risks of providing poor advice, it will not provide coverage for any personal injury or third-party damages caused by your actions. That is why any business will need to have Commercial General Liability (CGL) coverage, in addition to Errors and Omissions insurance.
For example, if you regularly visit a client’s office for a meeting, there is small exposure to the risk of third-party injury that needs to be considered and will require CGL coverage.
At the end of the day, CGL and Errors and Omissions insurance are designed to work hand-in-hand and not independently. Typically, you will not be able to acquire Errors and Omissions coverage without already holding a Commercial General Liability policy.
How Much Errors and Omissions Coverage Do I Need?
The amount of coverage that you need will depend on the type of work that you are performing, but the limits can range from $250,000 to $5 million.
Before issuing a policy, our team will assess the potential financial consequences of an error or omission on your part. They will consider the size of the company that you’re working with and the type of contract that you have with them. This assessment will help us to determine what limit is the right fit for your business.
When acquiring a policy, you also have the option to include defense costs in your coverage or leave defense costs as an addition. Contact our team to learn more about your coverage options.