Gwilliames Insurance Brokers Serving Ajax, Whitby, Oshawa and throughout Durham, Ontario

Errors & Omissions (E & O) insurance covers businesses for errors and omissions or negligent acts committed in the course of providing advice, expertise, or other services to your customers. Such a policy can be purchased for a wide range of business.

Many Businessmen assume that they are insured for their misdeeds by the Comprehensive General Liability (CGL) policies that cover their business - their assumption is incorrect!

Most CGL policies do not cover related claims to professional services that a business provides; indeed CGL policies almost always exclude coverage for claims related to the rendering of such services. E & O policies pick up where CGL policies leave off, while most CGL policies exclude liability for 'professional services' from their scope of coverage - most E & O policies are defined to cover only errors and omissions committed during the provision of 'professional service'.

The interpretation of 'professional services' as it is applied to the coverage disputes and distinguishes between the professional and non-professional services by the nature of the act in question, not the nature of the underlying activity or the person performing it.

The Term "Professional" act or service is one arising out of calling, occupation or employment involving specialized knowledge or labour, or skill involved is predominantly mentally and intellectual, rather than physical or manual. In determining whether an act is professional nature or professional service, one must look at act itself and not the party performing the act.

Mistakes can happen either by employer, employee or contractors hired by your company. Remember you can't be everywhere every time. Everyone makes mistakes at one time or another.

Errors & Omissions insurance will cover losses and legal expenses resulting from client lawsuits claiming that you made errors or acted negligently in the performance of your professional duties. E & O can also be used to fight slander, libel and breach of contract. Also damages from the company's improper performance, extra contractual damages, damages due to alleged breach of duty of good faith, defense and investigative expenses and punitive damages.

E & O provide safeguard coverage from a catastrophic loss in the event of a lawsuit, covering both legal expenses and judgments against you up to the policy limits. Even baseless claims against your business can require a legal defense cost that could bankrupt your business.

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