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Insurance That Means Business

General Liability Insurance



As a contractor, you work hard to create a quality product and satisfy customer expectations while building a profitable business. However, no matter how careful you and your employees are while working, mistakes do happen. In today’s business environment, small disputes with customers can quickly escalate into costly legal disputes.

Almost every contractor carries some form of general liability coverage. While these policies provide contractors much-needed protection for bodily injury and property damage claims, they typically don’t account for all forms of negligence.

That’s where Errors and Omissions (E&O) insurance, specifically designed for contractors, comes into play. This Coverage Insight provides a brief overview of E&O insurance and outlines why it is a critical component to a contractor’s overall risk management program.

Why E&O?

Simply put, general liability policies aren’t adequate to protect against E&O claims, necessitating additional coverage. In fact, most general liability policies exclude claims related to your work, your products and impaired property, creating significant insurance gaps.

Contractors are particularly vulnerable to claims of negligence following unintentional damage to an insured party, impairment of property, damage to products or similar, unexpected incidents. This makes E&O insurance even more crucial as simple complaints have the potential to escalate into costly legal disputes.

What’s more, courts often rule against contractors in claims related to errors and omissions and, without the proper protection, general contractors would have to cover the damages out of pocket.

E&O policies can help contractors close the gaps in their insurance coverages, providing coverage for claims related to the following:

  • Failing to complete projects according to specifications
  • Negligence in providing professional services
  • Poor, incorrect or incomplete work
  • Errors and oversights

Strong E&O policies can protect you and your business following a claim, helping you cover expenses related to court costs, lawyer fees and settlements. It should be noted that E&O insurance may not extend to your subcontractors, and you should encourage them to secure their own policies.

Securing the Policy That’s Right for You

As a contractor, there are a variety of insurance products to consider. To ensure you are accounting for all of your unique risks—and to secure a policy that is tailored to meet your specific business needs—it’s important to work with a qualified insurance broker.


Looking for comprehensive commercial insurance coverage in Alberta?

Access Insurance Group offers tailored solutions for contractors throughout the province, including locations in Edmonton, Red Deer, and Leduc. We can help you find the right E&O insurance policy to protect your business from unexpected liabilities.