If you provide a service, give advice, or manage client information, one small mistake could lead to a big legal problem. That’s where errors and omissions insurance (E&O) comes in.
Also known as professional liability insurance, E&O protects professionals and businesses when clients claim a mistake or oversight caused them financial harm. In today’s service-based economy, it’s not a nice-to-have; it’s essential.
At Marathon Insurance Group, we help Ontario businesses understand what E&O insurance covers, who needs it, and how it protects you when things go wrong, even if the claim is unfounded.
Let’s break it down.
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What Is Errors and Omissions Insurance?

Errors and omissions insurance covers legal costs, settlements, and judgments if a client sues your business for alleged:

• Negligence
• Errors
• Omissions
• Misrepresentation
• Breach of contract
• Failure to deliver a promised service

It doesn’t matter if the mistake was intentional or not. If a client believes your work caused them financial loss, they can take legal action. E&O insurance helps you deal with that fallout, so one dispute doesn’t put your business under.

Real-World Example

Say you’re a marketing consultant who sends the wrong version of an ad to print, and your client loses money correcting the error.
Or you’re a real estate agent who misses a clause in a contract, and the buyer blames you for the resulting costs.
Even if it’s not your fault, you’ll need to defend yourself, and legal fees alone can cost thousands. That’s where E&O coverage steps in.
Related Article: 5 Reasons Freelancers Need General Liability Insurance

Who Needs E&O Insurance?

If you offer a professional service, you likely need E&O. This includes businesses and individuals in fields like:

• Real estate agents and brokers
• Financial advisors and accountants
• Consultants and freelancers
• IT service providers
• Engineers and architects
• Insurance brokers
• Lawyers
• Healthcare professionals (with some industry-specific coverage)
• Marketing and design professionals

Even if you do your job with care, mistakes happen, and clients don’t always respond reasonably. E&O coverage ensures you’re protected if they take legal action.

What Does E&O Insurance Cover?

Here’s what you can typically expect an errors and omissions policy to cover:

Legal Defence Costs

Even if a claim is false, you’ll need a lawyer. E&O helps cover lawyer fees, court costs, and related expenses.

Settlements and Judgments

If the case ends with a payout to the client, your policy can cover the amount up to your coverage limit.

Administrative Errors

Mistakes in paperwork, missed deadlines, or communication issues that cause client losses.

Alleged Professional Negligence

If a client believes your work didn’t meet industry standards and caused harm, even if there’s no proof.

Unintentional Breach of Contract

Failure to meet deadlines or deliverables due to an honest oversight.
Each policy has its own details, so it’s important to work with a broker who understands your business and how to protect it.

What E&O Insurance Doesn’t Cover

Errors and omissions insurance is powerful, but it doesn’t cover everything. Common exclusions include:

• Bodily injury or property damage (covered by general liability insurance)
• Deliberate fraud or criminal acts
• Employee-related claims (covered under employment practices liability)
• Cybersecurity incidents (covered under cyber insurance)
• False advertising or intellectual property disputes (may require specialty coverage)

If your business faces risks outside the E&O umbrella, Marathon Insurance Group can build a broader coverage package to fill those gaps.
Related Article: Personal Umbrella Insurance: What Does It Cover?

How Is E&O Different from General Liability Insurance?

This is one of the most common questions we get.

• General liability insurance covers physical incidents, like if a client slips and falls at your office, or you damage their property during a visit.
• Errors and omissions insurance covers intangible harm, like financial loss due to your professional services or advice.

Many businesses need both. We’ll help you understand where your biggest risks are and build a policy that covers them fully.

How Much Does E&O Insurance Cost in Ontario?

The cost of E&O insurance varies based on:

• Your industry and profession
• Annual revenue
• Size of your business (number of employees)
• Claims history
• Coverage limits and deductibles
• Whether you’re a sole proprietor or a corporation

As a ballpark range, small business E&O policies in Ontario often start around $500–$1,500 per year, but more complex businesses can pay more.
Marathon Insurance Group works with top Canadian insurers to find competitive pricing that fits your risk profile without sacrificing protection.

Why E&O Insurance Matters (Even If You’ve Never Been Sued)

Many professionals skip E&O coverage because they’ve never had an issue. But one client disagreement, one missed detail, or one email sent in error can change that fast.
Even if you win the case, legal fees can quickly add up to thousands or more.
And in some industries, having E&O insurance isn’t just a smart idea. It’s required by:

• Regulatory bodies
• Professional associations
• Client contracts
• Licensing requirements

For example, real estate agents, mortgage brokers, and financial planners in Ontario may be required to carry E&O to stay in good standing.

E&O Isn’t Optional but Essential

If you run a service-based business or give professional advice, errors and omissions insurance protects your reputation and your bottom line. Even with years of experience, all it takes is one client misunderstanding or one mistake to put your business at risk.
At Marathon Insurance Group, we help professionals across Ontario get the protection they need to move forward with confidence so you can focus on your work, not worst-case scenarios.
Need errors and omissions insurance? Reach out to Marathon Insurance Group for a free, no-obligation quote. Let’s make sure you’re covered for whatever comes next.