Header bg
Apollo logo
Apollo logo mobile
  • Tenant Insurance
  • Student Tenant Insurance
  • Homeowner's Insurance
  • Condo and Townhouse Insurance
  • Landlord Insurance
  • Get A Quote
  • Get A Quote
  • section background

    Differences Between E&O & Professional Liability

    Hero bg 2
    what is the difference between e&o and professional liability insurance

    We’re often asked if errors and omissions is the same as professional liability insurance and what is the difference between E&O and professional liability insurance.

    The two terms are used interchangeably and refer to the same insurance product. However, if you want to get technical, E&O is a subset of the personal liability umbrella.

    When you visit an insurance company in Canada, a broker or insurance professional usually assumes you’re looking for the same product using either term.

    Essentially, you’re looking to protect your small (or large!) business from the cost of legal claims when you’re negligent, make a professional mistake, leave something out (omission), provide incorrect advice, don’t live up to a particular standard of service, and more.

    The remainder of this article goes over professional liability insurance, what it covers, and how much you can expect a policy to cost.

    What does professional liability insurance cover?

    Professional liability coverage protects business owners from the cost of lawsuits, including legal fees, damage awards, settlement costs, and more, if a client sues you for the provision of negligent professional services or if your services weren’t up to par.

    This includes events such as missing a deadline, losing client data, and really any mistake that leads to a client’s financial loss.

    For example, suppose you’re a personal trainer. If you push a client too hard and they injure themselves, they might sue. You could be financially liable for their pain and suffering, lost wages, medical costs, etc.

    Professional liability insurance, in this case, covers your legal fees and any of those pain and suffering, lost wages, and medical fees.

    An E&O policy won’t cover you if the following occur:

    • Claims made outside of your policy coverage period

    • Intentional acts or purposeful false advertising

    • Liability is between you and an employee

    Need Professional Liability Insurance Insurance?

    Learn More

    It’s also important to understand that professional liability insurance only covers lawsuits related to negligent provisions of services, errors and omissions, etc.

    It doesn’t cover lawsuits related to injuries or property damage that occur on your premises. For example, if someone slips at your office. A general liability policy covers these types of lawsuit costs.

    Further, a professional liability insurance won’t cover damages resulting from hackers or viruses. You need a cyber liability insurance policy to cover these costs.

    Do I need professional liability insurance?

    Often, clients stipulate that you need a minimum amount of professional liability insurance. This ultimately protects the client from lawsuits or costs that result from your negligence.

    It also ensures that your client can sue and receive compensation from your policy if you fail to provide proper services.

    But if a policy isn’t mandatory, it’s still an intelligent choice to purchase E&O coverage. The right insurance provides peace of mind that you won’t have to fork over hundreds of thousands of dollars in legal fees if you’re ever sued.

    Related: How much liability insurance should I have

    How much does errors and omissions insurance cost?

    The easiest way to determine the cost of a policy is to get a free online quote with APOLLO. We ultimately determine your premium based on various factors:

    • The number of employees you have

    • Your business’ size

    • Location

    • Lines of business

    • Amount of coverage, coverage scope, and deductible

    Professional liability and E&O coverage are two terms that describe a way to mitigate the risk of lawsuits resulting from the provision of negligent services.Errors and omissions insurance is a vital part of your business insurance plan. It could ultimately save you from paying hundreds of thousands of dollars in legal costs out of pocket.Get a free quote and buy online in under five minutes with APOLLO today!

    APOLLO Has You Covered

    We can help you understand the benefits of Business Insurance, and get the kind of protection you need in minutes.

    Learn More

    Originally published January 25, 2022, updated August 25, 2023

    Back to APOLLO Magazine
    Share this article

    Limited time offer: Get comprehensive Tenant Insurance starting at just $11/month

    Get no-nonsense coverage that's the best value for your money. Purchase in less than a minute, receive your policy instantly, and save when you buy online.

    Get a free quote

    4.6 rating

    Google Logo

    Limited time offer: Get comprehensive Tenant Insurance starting at just $11/month

    Get no-nonsense coverage that's the best value for your money. Purchase in less than a minute, receive your policy instantly, and save when you buy online.

    Relevant articles

    Toronto – apollocover.com – 1920×1080

    How Much is Tenant Insurance in Toronto?

    customize my tenant insurance canada

    4 Best Alternative Tenant Insurance Companies to CIBC Tenant Insurance

    financial goals canada

    How to Set Up Financial Goals

    are we in a recession canada

    How to Prepare for a Recession

    section background
    section background

    Getting insured is as easy as 1 - 2 - 3

    Tell us (very little) about yourself

    Tell us (very little) about yourself

    Just tell us your address, your name, email and phone number. And that's it. We'll give you a price in less than a minute.

    Pay online easily and securely

    Pay online easily and securely

    You can choose to pay monthly or save money by paying for the entire year in one easy payment.

    Get your documents in your inbox - instantly

    Get your documents in your inbox - instantly

    As soon as you complete your purchase, you'll find your proof of insurance and policy documents waiting for you in your inbox.

    Get covered today - it couldn’t be easier

    We’ve provided more than 1,000,000 quotes to Canadians just like you. Give it a try!

    Google Logo


    4.6 rating

    1,472 reviews

    view all

    Across Canada

    Contact Us
    Apollo logo

    © 2024 APOLLO Insurance Solutions Ltd.

    111 Water Street, Unit 210, Vancouver, British Columbia, V6B 1A7

    APOLLO Insurance Agency Ltd. (o/a APOLLO Brokerage in the province of Ontario only) is a licensed retail brokerage, offering our clients with a comprehensive set of insurance solutions to meet their individual needs. APOLLO Insurance Agency Ltd. maintains necessary corporate licensing in provinces across Canada. Availability of products and service depends on licensing and product availability. The information that appears on this page is provided for information purposes only. Advertised products and prices are not guaranteed and vary based on insurance provider and/or insurance company's discretion and product availability.

    Transparency and Disclosure: APOLLO Insurance Agency's role is to provide you with exceptional service and the best insurance products that suit your needs. As a licensed retail brokerage, our compensation is based on a commission basis already built into your insurance premium and varies based on the product purchased through our platform. For a description of how APOLLO Insurance Agency is compensated and how this is calculated, please refer to our Compensation Disclosure document. For consumers in Ontario, please review the RIBO Conduct Fact Sheet and the RIBO Conduct Guidance document.