- What is Errors and Omissions Insurance?
- How much does Errors and Omissions Insurance cost in Alberta?
- What does E&O cover?
- What does E&O not cover?
- Why is E&O Insurance Critical for Alberta Businesses?
E&O insurance is designed to protect business owners from any mistakes or alleged negligence. Even if you do everything you believe to be right, you are at risk.
If your client believes your work or advice directly resulted in a loss, either financially or reputationally, you may be sued.
Choosing E&O insurance with Lloyd Sadd protects your small business. Get a free personalized quote today.
Errors & Omissions Insurance premiums vary drastically depending on your line of work, how much risk is associated, and your business’ annual revenue. To get a free, personalized quote, contact a Lloyd Sadd advisor today.
E&O insurance covers your small business in the case of any lawsuits arising from alleged mistakes or negligence.
If a client claims that your work was negligent or you made an error, you’re covered. Any legal expenses or settlements are covered, protecting you and your business.
E&O insurance doesn’t cover any intentional or illegal wrongdoing. Additionally, it won’t cover bodily injury, property damage, employment disputes, or copyright infringement. Additionally, this policy will not cover any settlement or judgments that exceed the maximum coverage limit.
When you operate without E&O insurance, you are putting your business on the line. Mistakes happen to everyone.
Whether you’re:
- An accountant who misses a tax savings opportunity for a client,
- A landscaper who accidentally uses a plant toxic to your client’s pet,
- A consultant who gives advice that directly led to client loss, you’re covered when you register for E&O insurance.
Additionally, many businesses that might look to subcontract you in Alberta require you to have E&O insurance. This makes it a compliance necessity (and can add to your credibility).
- Is E&O worth it?
- What’s the main difference between E&O and liability insurance?
- What’s the difference between E&O and professional indemnity?
- How much E&O coverage should a small business owner buy?
Investing in E&O insurance is a smart choice. The financial burden of legal defense, or worse, the cost of damages, can be devastating. These lawsuits can potentially lead to bankruptcy or significant reputational harm.
For peace of mind, E&O insurance can help you rest easy knowing you won’t be ruined by a lawsuit from any mistakes or alleged negligence.
You get to focus on your business with the confidence that a single mistake won’t jeopardize your hard work and dedication.
You know now that E&O insurance protects against perceived negligence or any mistakes. General Liability Insurance, however, covers you in the case of a number of other business claims. Bodily injury, property damage, and anything else that occurs as a result of your business operations is covered.
E&O insurance and General Liability Insurance complement each other to provide full protection for small businesses.
There is no difference! E&O insurance is the term used in Canada and the USA, and professional indemnity is the term used in the UK and Australia.
When it comes to insurance, there is no one-size-fits-all approach. It requires consideration of the type of work you perform, the type of clients, the amount of financial exposure, and more. Contact us and we’ll work with you to customize the best plan for your needs.
Why Use Lloyd Sadd For Your E&O Coverage?
Facing a lawsuit from a client can be a scary and stressful situation. The last thing you need when you’re in that position is to navigate hurdles in the claims process.
We strive to make the process from submitting a claim to achieving resolution simple and efficient. Here’s an overview of what you can expect in the claims process and some tips for making this process seamless.
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Let us or your insurance provider know as soon as you become aware of a claim or incident that could lead to a claim. This includes dates, anyone involved, and any relevant documentation.
Your insurance company may recommend a lawyer, but if not, look for someone who has experience with E&O claims in your specific industry.
The claimant may hire an expert witness to testify that you breached your professional duty, so you should have an expert (either someone from your firm or a third party) testify that you conducted any necessary due diligence.
Any other professional working on the same project should be notified, as they may need to defend their portion of the work.
A large claim can be very time-consuming, and you don’t want to have to deal with lost information. The more organized you are as you go, the less it will cost you in lost billable hours.
At every step in this journey, we are in your corner. Feel free to contact your Lloyd Sadd advisor for updates, explanations, or anything else you may need in the claims process.
Why Use Lloyd Sadd For Your E&O Coverage?
Customized plans:
We understand that your business has unique risks. We’ll work with you to make a tailored recommendation within your budget.
Industry expertise:
We’re Alberta-based and have helped hundreds of businesses in our province. We understand the specific challenges and risks your business faces.
Transparent policies and pricing:
We will provide a clear explanation of your policy terms and pricing. No hidden fine print here.
Responsive and knowledgeable support:
Our team is always here to help. Particularly in the claims process when you need it most.
Contract Reviews:
If you have any risk blind spots, we’ll help you identify them. Knowing ahead helps you avoid them before they happen.
Ongoing advice:
If you have questions at any point, you can give us a call. We’re always around to help.
How Long Do E&O Claims Take?
This can vary greatly depending on a number of factors. At Lloyd Sadd, we are committed to resolve claims promptly, but sometimes certain factors are out of our control.
Regardless, we commit to keeping you in the loop the whole time. You’ll be well informed at every step of the process.
Does General Liability Insurance Cover E&O?
Because E&O coverage is tailored specifically to any alleged negligence or advice that results in client loss, General Liability Insurance may not protect you fully. If you are in a field where you need to provide professional advice or recommendations, you should consider protecting yourself with E&O insurance.
General Liability Insurance and Errors and Omissions (E&O) Insurance are two distinct types of business insurance coverages that serve different purposes. Here’s a brief overview of the differences between them:
General Liability Insurance (GL):
General liability insurance provides coverage for third-party bodily injury, property damage, and personal injury claims that may arise due to your business operations, products, or premises.
It protects your business against lawsuits related to accidents, injuries, or property damage that may occur on your business premises or as a result of your business activities.
Examples: If a customer slips at a jobsite or if your excavator causes damage to someone else’s property, general liability insurance may cover the associated costs.
Errors and Omissions Insurance (E&O):
Errors and omissions insurance, also known as professional liability insurance, provides coverage for claims arising from professional mistakes, negligence, or failure to perform services as promised. It protects professionals and businesses from financial losses resulting from claims of inadequate work, errors, mistakes, or failure to deliver promised services. E&O insurance is often crucial for professionals such as consultants, engineers, architects, and others who provide professional services. If a client claims that your advice led to financial loss or that your services were not up to the expected standard, E&O insurance can provide coverage.
In summary, while general liability insurance focuses on bodily injury, property damage, and personal injury claims resulting from your business operations, products, or premises, errors and omissions insurance is specifically designed to cover claims related to professional mistakes, negligence, or failure to deliver promised services. Many businesses may benefit from having both types of insurance to ensure comprehensive coverage for a range of potential risks.
CHOOSING THE RIGHT E&O COVERAGE FOR YOUR BUSINESS
When it comes to choosing the right E&O coverage for your business, there are a lot of factors to consider. Specific industry needs, potential risks, the type of services you offer, and the type of clients you serve are just a few. Regardless, ensuring you have the right level of coverage is key.
Here are some examples of different industries and the E&O lawsuits they could potential face
Construction: You accidentally violate a building code, or give advice that results in building structural issues.
Architectural: You make a structural recommendation for a building that doesn’t properly consider snow and ice falling, which causes bodily harm to pedestrians.
Technology services: Any software failure, incompatibility with third-party systems, or weak spots that get hacked.
Additional considerations:
When it comes to finding the right policy for you, the maximum coverage should be relatively close to your worst-case scenario.
Our team of experts can review similar lawsuits aligned with your risks and determine what your threshold should be. We will help balance your policy premium and deductible with your maximum coverage needs to ensure it’s a seamless fit.
Yearly reviews ensure that we remain proactive about our coverage. I know our customized insurance policy will always meet our needs. Over the years the relationship has grown and has always remained friendly and fun, as well as professional and responsive. They keep their customers’ best interests at heart and treat their clients like humans, rather than transactions.
Gateway Entertainment
Since we have switched over to Lloyd Sadd, the value add that they provide has been an extra benefit. We continually have Lloyd Sadd review contracts before we enter into them to make sure that we are in compliance with the insurance clauses and to see if they have any concerns with the owner’s insurance requirement.
Layser Earth Works Inc.
RELATED COVERAGES YOU MAY NEED
- Business Interruption Insurance
- Crime Insurance
- Cyber Risk Insurance
- Product Recall Insurance
- Commercial Auto Insurance
- Employers' Liability Insurance
- Commercial Property Insurance
An unexpected event like a fire, a flood, or even technical issues can disrupt your business operations. If your work projects get postponed from any of these events out of your control, you will likely face lost wages. Additionally, you could also be at risk for a lawsuit from a client for delays.
With Business Interruption Insurance, you are protected from any financial impact from the delay. This can be in the form of lost wages, legal fees, and more.
Almost all businesses are vulnerable to crimes, so crime insurance is a great idea to add to your current coverage. These crimes can include employee theft, cybercrime, accounting fraud, copyright infringement, burglary, forgery, and more.
These crimes can cost significant money and impact your business’ reputation. With Crime Insurance, lost wages, lost product, and any impacts to revenue are protected so you can focus on getting back on your feet.
An unexpected event like a fire, a flood, or even technical issues can disrupt your business operations. If your work projects get postponed from any of these events out of your control, you will likely face lost wages. Additionally, you could also be at risk for a lawsuit from a client for delays.
With Business Interruption Insurance, you are protected from any financial impact from the delay. This can be in the form of lost wages, legal fees, and more.
If you manufacture and sell a product, and your product gets recalled, you could face devastating costs. Some of these costs include loss of revenue, cost to withdraw the product, product testing, overtime wages, crisis management, and even damages for any client loss from your product.
Product Recall Insurance will cover any costs incurred or lost wages resulting from a recall, and your adjustor will be able to help recommend crisis management or product testing experts along the way.
Did you know: your standard auto insurance policy likely won’t cover you from any business impact stemming from vehicle issues?
If you rely on a vehicle for work to transport materials, tools, or any employees, you need to ensure you have more comprehensive coverage. Basic auto coverage won’t cover client losses from being unable to meet a project deadline due to vehicle issues.
If you rely on a business vehicle, you should consider Commercial Auto Insurance.
If you hire employees, Employers’ Liability Insurance is a no-brainer. This coverage ensures you’re protected from liability if your employees get sick or injured as a result of their work for you.
Worker’s Compensation coverage reimburses your employees for medical costs and lost wages. However, you may still be sued for any fees or damages not covered by Worker’s Compensation. For extra protection, particularly if you work in a high-risk role and hire employees or subcontractors, this coverage is for you.
Whether you run an office or own a storefront, you’re at risk of fire, flood, theft, and more unforeseeable events. Computers, files, furniture, business interruption, and product inventory are just a few examples of key items that are at risk.
With Commercial Property Insurance, you can survive the loss of any vital property and be reimbursed for the replacement cost and to cover any lost income while you recover.
Protecting your business never got easier. Start your quote today and receive a custom risk consultation.
GET A QUOTE
NAVIGATING E&O BUSINESS INSURANCE CLAIMS IN ALBERTA
We strive to make the claims process as easy as possible. When it’s time to submit a claim, you can either contact your insurance company directly through their portal or reach out to your advisor and we can submit the claim on your behalf.
If you don’t hear back from an adjuster within 48 hours, contact our team. We’ll follow up with your adjustor to get the information you need.
Through your insurance company’s secure portal, you should be able to view your claim status at any point. We also have dedicated Claims Advocates who will help you along this journey, mediate between your insurance company, and explain anything you don’t understand in simple terms.
FAQs on Contractor Businesses in Alberta
When is Errors and Omissions Insurance Necessary for Alberta Businesses?
We recommend that any professional who provides professional advice or recommendations seek E&O insurance. Whether you’re a consultant, an architect, or a medical professional, if your professional stance causes any client loss, you are at risk of being sued.
Certain businesses looking to hire contractors will require that you have Errors & Omissions insurance to protect both you and their business.
What’s the Difference Between Errors and Omissions & Cyber Liability?
E&O insurance primarily addresses negligence or errors relating to services you provide. Cyber Liability insurance, however, protects from cyber incidents. Examples are data breaches, hacking, ransomware attacks, and more.
While there may be some overlap in coverage, each type of insurance serves a distinct purpose. They’re both tailored to address different risks faced by businesses in today’s digital landscape.
Why Should I Consider Errors and Omissions Insurance for my Tech Business?
Providing technology-related services or products comes with a unique set of risks. In the tech industry, even minor errors or oversights can result in financial loss or reputational damage for your clients.
E&O insurance protects against claims of professional negligence, errors, or omissions. It ensures that your tech business is protected when facing these difficult-to-predict risks.
What are common Errors and Omissions that need to be covered in Alberta?
Common Errors and Omissions (E&O) that need to be covered in Alberta vary depending on the industry and profession. However, some common examples include:
- Providing incorrect advice or recommendations that lead to financial loss for a client
- Failing to meet contractual obligations or deadlines, resulting in project delays or penalties
- Errors in documentation, contracts, or reports that lead to misunderstandings or legal disputes
- Breach of confidentiality or privacy obligations, such as mishandling sensitive client information
- Poor communication or failure to properly manage client expectations. This can lead to dissatisfaction or claims of misrepresentation.
Having comprehensive E&O insurance coverage tailored to your specific industry is crucial. Lawsuits arising from situations you can’t predict can take a significant financial toll on your business.
