Do You need an Error and Omission Insurance Cover?

The Secret of Building up a Successful Business
April 12, 2016

Do You need an Error and Omission Insurance Cover?

Many professionals venture in the various endeavor and may end up getting out sooner than they expected. This may be due to bankruptcy or so many lawsuits that may force them out of business. However, insurance firms understand that errors and omissions may be made or even failure to meet the client’s expectations; an errors and omissions insurance quote Ontario covers these shortcomings on your behalf.

Errors and omissions insurance is a policy that covers professionals in the different fields more so service providers. One may make an error or omission in the course of their daily undertaking, which may end up making losses for their client among other financial difficulties. A firm may also be sued for failure to meet the expectation of the clients. In as much as a court may rule in your favor, you may end up spending so much money defending the lawsuit and this, therefore, may not play well on your side. With the quote, however, you can settle the payments and remain in business.

Why take up the errors and omissions quote

It enables you to remain in business. The costs may be viewed as minor, but to business, they are enormous costs. Think of this scenario; you are a service provider, say in the information technology field; providing services to a great number of customers. Your systems are down for a few minutes during the day, hence rendering all other firms you provide services incapable of transacting. Every firm then files a claim against you. Will you be able to escape this? Here’s where the insurance firm comes in.

It may act as a selling point; an investor, or client will only get in business with you with the assurance that their money will be well invested or an assurance that their services or quality of work you provide will not be compromised. Therefore, the insurance quote may act as a selling point for your venture, increasing the number of clients and ensuring your business’ going concern.

It covers defense costs that may arise in a case of lawsuits. Hence you can concentrate on providing the best you can to clients without the fear of how to settle claims brought against you as the insurance will take care of them.


In as far as the deal sounds so good to any service provider, there are a few exceptions that this quote will not cover. They include;

  • Acting in a dishonest way all because you are insured. You may be insured, but you still have the responsibility of providing the best services to your ability, hence no room for dishonesty.
  • Wrongful acts that you were aware of before the policy inception yet you didn’t disclose
  • In the case of wrongful claims that arose under the previous policy.
  • Fee disputes, profits gained illegally, body injury, property damage, punitive damages among others.

Talk to your attorney about the best policy to take, but if you are a service provider and have the exposure be sure to take the initiative and be covered for errors and omissions before you take the risk.

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