Get insurance in three easy steps
Professionals come in many shapes and sizes – ranging from insurance brokers and accountants to lawyers, engineers and architects. As a professional, your clients are depending on you to deliver accurate and impartial advice and counselling. If you fail at this duty and your advice causes the client to suffer bodily injury or a financial loss of some kind, you might be found liable in court and have to compensate the client. This type of liability is special and is not covered by your standard commercial general liability policy. For proper coverage, you should have Errors & Omissions insurance.
Most commonly, lawsuits against professionals allege misrepresentation, breach of legal duties, offering misleading or incorrect advice or for failing to disclose conflicts of interest. In a recent case, a tax accountant made a mistake while handling her client’s taxes which caused her client to be audited and fined by the CRA. The client later sued her practice to recover damages.
In light of these risks, all professionals should protect themselves by purchasing the appropriate errors and omissions insurance.