Errors and Omissions Liability

Liability protection for professional service providers

In today’s increasingly litigious environment, professionals are often subject to allegations brought by on unhappy clients or other parties who feel that they have been harmed by the professionals’ actions – or inactions. Even when such claims are frivolous, defence costs can devastate uninsured professionals. Additionally, many potential clients require that a professional services firm carry errors and omissions insurance before they will agree to hire the firm.

Travelers offers miscellaneous professional liability coverage for many professionals

  • Arbitrators/mediators
  • Auctioneers
  • Bookkeepers
  • Business associations
  • Claims adjusters
  • Consultants
  • Court reporters
  • Data processors
  • Employment agencies
  • Educational institutions
  • Executive search firms
  • Management accountants
  • Market researchers
  • Non-profit organizations
  • Personal counselors
  • Resume services
  • Title searchers
  • Translators
  • Travel agents
  • Not all miscellaneous professional liability policies are the same, and policy comparisons can be misleading. See why Travelers Canada’s policy stands out as an industry leader.

    Key coverages and features

    • Defence coverage for disciplinary proceedings
    • Broad definition of claim
    • Broad definition of subsidiary 
    • Spousal and domestic partner liability coverage
    • Definition of loss
    • No absolute bodily injury or property damage exclusion 
    • Severability of exclusions 
    • Flexible limit options
    • Additional defence coverage 
    • Defence
    • Extended reporting period
    • Worldwide coverage 
    • 30 day notice of non-renewal 
    • Non-cancelable by insurer except for non-payment of premium
    • Retentions
    • Representations

    Learn more about the coverages and features of our Wrap+® miscellaneous professional liability product.

    Claims examples

    Tax discrepancies

    A bookkeeper was retained by ABC Company to prepare GST and provincial tax statements for its client, a small manufacturer. Subsequently, the Canada Revenue Agency (“CRA”) issued a notice to ABC Company for certain tax discrepancies over many years, totaling $250,000, based upon certain misinterpretations of the Income Tax Act regarding foreign sales. ABC Company commenced an action against the bookkeeper claiming that as a result of the bookkeeper’s negligence, it sustained damages in the form of interest owed to the CRA as a result of the tax discrepancies.

    Unsatisfactory auction revenue 

    An auctioneer was hired to auction off a large estate containing several unique pieces. When the auction failed to bring what the heirs of the estate had hoped for, they sued the auctioneer claiming that he had inadequately advertised the auction by not listing some of the key pieces in promotional brochures for the auction. If compensatory damages are found owing by the auctioneer, such damages may also be covered under the policy.

    Mistaken marketing materials 

    A management consultant’s provided event management services to a trade association. During the course of the event preparation, errors were made in the advertising documentation sent to the participants relating to the scheduling and topics to be addressed by the event’s speakers. Consequently, all the advertising documentation had to be reprinted and resent, which generated substantial additional costs. The trade association sought to hold the insured liable for the errors and commenced a lawsuit for damages consisting of the cost of reprinting the advertising documentation.

    To learn more about our miscellaneous professional liability product, please call your insurance broker or find a Travelers Canada broker near you.

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