Errors and Omissions Liability

Liability protection for professional service providers

In today’s increasingly litigious environment, professionals are often subject to allegations brought by 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
  • Broad definition of loss
  • No absolute bodily injury or property damage exclusion 
  • Severability of exclusions 
  • Flexible limit options
  • Additional defence coverage 
  • Option to select duty to defend or reimbursement coverage
  • Extended reporting period - available if insurer or insured fails to renew or cancels
  • Worldwide coverage 
  • 90-day notice of non-renewal 
  • Non-cancelable by insurer except for non-payment of premium
  • Retentions - Only one retention applies if claim triggers two or more liability coverage sections
  • Representations - Only knowledge of Executive Officers imputed to the Insured Organization 

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.

Liability protection for design professionals

Regardless of how well a design professional plans for a project, the potential for mistakes in the performance of their professional services is very real and so is the potential for a lawsuit or claim as a consequence of those mistakes.

Our Travelers 1st Choice® policy ensures that your clients are protected from the impact of a lawsuit or claim by offering professional liability coverage for design professionals.

Key coverages and features

  • Network and information security coverage
  • Disciplinary proceedings expense coverage
  • Document replacement or restoration expense coverage
  • Crisis management expense coverage
  • Loss of earnings coverage
  • Pre-claim assistance
  • Broad definition of professional services
  • Broad definition of wrongful act
  • Mediation retention credit
  • Non-cancellable except for non-payment of premium
  • Worldwide coverage
  • 90-day notice of non-renewal

 

Risk Management Resources

As part of your coverage, Travelers includes:

  • Contract review services
  • Periodic risk management newsletters highlighting relevant topics for design professionals
  • Seminars and webinars that address current risk management topics

Wrap+®

Solutions for private companies and non-profit organizations

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Claim. Covered.

Explore real claims that Canadian businesses have experienced and learn how they were protected with coverage from Travelers Canada.

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