The prudent professional would be well-advised to secure professional liability insurance as the risks and potential liability associated with the practice of professions continue to grow. Professional liability insurance, or E&O (errors & omissions) as it is more commonly known, can be obtained in addition to general liability insurance policies and seeks to protect professionals from the financial loss and civil liability they can incur as a result of negligent acts, errors and omissions during the performance of professional services. E&O policies also cover costs associated with defending an action which can become quite hefty, even where liability is not established. Only professionals are eligible for E&O coverage, but non-professionals, such as technicians, labourers, employees, do not qualify.

The purpose of this paper is to provide an update on the issues raised in recent case law on E&O coverage and related issues, and to discuss the implications of these cases on the insurance industry.