If your business provides advice, consulting, or professional services, there’s always a chance that something could go wrong. Even when you’re experienced and careful, clients can claim that your work caused them a loss. That’s where Errors and Omissions Insurance comes in.

Also called E&O insurance, this coverage helps protect professionals from lawsuits related to mistakes, missed deadlines, or bad advice, whether the claims are valid or not.

One of the first questions most people ask is: how much does it cost? The answer isn’t one-size-fits-all. But in this guide, we’ll break down what affects the cost, what’s usually included, and how to get coverage that fits your budget and your business.

Related Article: What Is Errors and Omissions Insurance

What Does E&O Insurance Cover?

Errors and omissions insurance is designed to protect you if a client claims that your work caused them financial loss. That could include:

• Giving incorrect advice
  
  
• Missing a critical deadline
  
  
• Failing to deliver promised results
  
  
• Omitting important details in a contract or service
  
  
• Miscommunication that leads to client losses
  
  

It helps cover legal fees, court costs, settlements, and sometimes even the cost of hiring experts to defend your side. E&O is especially useful for people in fields like:

• Consulting
  
  
• Real estate
  
  
• IT and tech services
  
  
• Marketing and creative work
  
  
• Accounting and bookkeeping
  
  
• Legal services (not lawyers themselves, who have separate protections)
  
  
• Engineering and architecture
  
  

Even if you haven’t done anything wrong, defending yourself in court can get expensive. That’s why E&O coverage exists to protect you from financial fallout, not just actual errors.

How Much Does E&O Insurance Cost in Canada?

In Ontario and across Canada, E&O insurance costs vary depending on your industry, the size of your business, and your risk level.

For small businesses or sole proprietors, E&O insurance usually starts around $500 to $1,000 per year. For larger businesses or those in high-risk sectors, the cost can be much higher, ranging from $2,000 to $5,000+ annually.

Some freelancers with minimal risk might pay less, especially if they opt for lower coverage limits.

What Affects the Cost of E&O Insurance?

Several factors go into calculating your premium. Here’s what most insurers consider:

Industry and Services Offered

Different industries carry different risks. A freelance writer is less likely to face a lawsuit than a financial consultant giving investment advice.

High-risk professions (like financial advising, software development, or design engineering) typically pay more than low-risk fields (like admin consulting or resume writing).

Business Size and Revenue

Larger companies with more clients, employees, or contracts present more exposure. That usually leads to higher premiums.

Revenue plays a role, too. Higher-income businesses tend to pay more for E&O coverage, partly because they have more at stake and partly because clients expect higher accountability.

Claims History

If you’ve had claims or legal issues in the past, insurers may charge more or limit your coverage options. A clean claims history helps keep your rate low.

Coverage Limits

Most small businesses opt for $1 million to $2 million in coverage, but higher limits are available.

The more coverage you want, the more you’ll pay. But keep in mind that legal costs alone can climb quickly, especially if a case drags on.

Policy Deductibles

A deductible is what you agree to pay out-of-pocket before your insurance kicks in. A higher deductible can lower your premium, but be realistic about what you could afford to pay in a worst-case scenario.

Sample Cost Ranges by Profession

While prices vary, here’s a rough look at what professionals in Ontario might pay for E&O coverage:

• Freelance Designer / Web Developer: $500–$900 per year
  
  
• IT Consultant / Tech Service Provider: $800–$1,500 per year
  
  
• Real Estate Agent / Broker: $1,000–$2,000 per year
  
  
• Financial Planner / Bookkeeper: $1,200–$3,000 per year
  
  
• Engineering or Architecture Firm: $2,000–$5,000+ per year
  
  

These estimates assume businesses with no prior claims and modest revenue. If you’re unsure where your business fits, speaking with a broker is the best way to get accurate numbers.

What’s Typically Included in E&O Coverage?

Every policy is different, but most E&O insurance includes:

• Legal defence costs
• Settlements or court-ordered damages
• Claims made by current or former clients
• Coverage for actual mistakes and accusations of mistakes
  
  

Some policies also include:

• Breach of contract claims
• Allegations of negligence
• Libel or slander (related to professional work)
  
  

What it usually doesn’t cover:

• Bodily injury or property damage (which fall under general liability)
• Employee lawsuits or disputes
• Criminal acts or intentional wrongdoing
• False advertising or fraud
  
  

This is why it’s important to combine E&O with other types of business insurance, like general liability or cyber insurance, depending on your risk profile.

Related Article: How Much Does Cybersecurity Insurance Cost

Is E&O Insurance Mandatory?

E&O insurance is not legally required for most businesses in Ontario, but in many industries, it’s strongly recommended or even contractually required.

Clients often ask for proof of E&O coverage before signing a deal, especially in professional services. Having a policy in place signals professionalism and shows that you take your work and their protection seriously.

How to Get E&O Insurance in Ontario

Getting covered is easier than you might think, especially with help from a brokerage like Marathon Insurance. Here’s how the process typically works:

1. Gather Business Info
   You’ll need details like your business type, annual revenue, number of employees, and a description of the services you offer.
   
   
2. Work With a Broker
   A broker can compare options from multiple insurers to find the right fit. At Marathon, we make sure your coverage is aligned with your risk, without paying for things you don’t need.
   
   
3. Choose Your Limits and Deductible
   Higher limits cost more but offer greater protection. Deductibles help manage your premium, but should always be affordable if you need to use the policy.
   
   
4. Review and Finalize
   Once you choose a plan, you’ll get a Certificate of Insurance that you can show clients, contractors, or partners.
   
   

Can You Bundle E&O with Other Business Insurance?

Yes, and it’s often a smart move.

Bundling your E&O with commercial general liability or cyber liability insurance can save money and simplify your insurance management.

At Marathon Insurance, we regularly help clients build complete insurance packages that cover everything from lawsuits to property loss. If you want to protect your work, your team, and your bottom line, bundling is a smart strategy.

Related Article: What Is Cybersecurity Insurance?

Protect Your Work, Protect Your Business

Even if you’re careful, mistakes happen. Clients misinterpret contracts. Deadlines are missed. Projects go sideways. One bad review or legal letter can turn into a massive cost if you’re not protected.

Errors and omissions insurance is your safety net.

In Ontario, coverage is flexible, affordable, and essential for anyone offering professional advice or services. The cost varies based on your business, but the peace of mind is consistent. If you’ve worked hard to build your reputation, it makes sense to protect it.

Still have questions? The brokers at Marathon Insurance can walk you through your options, explain the fine print, and help you choose the policy that fits your risk and your budget.

Speak with a licensed broker today to get expert advice, competitive quotes, and the protection your business deserves.