CFC has introduced a standalone Errors and Omissions (E&O) insurance policy tailored for contractors in Canada. This new offering aims to provide broader and more consistent coverage than the E&O extensions typically included in general liability policies. Historically, Canadian contractors have faced limited access to dedicated E&O insurance, often relying on restricted policy add-ons.
The policy is structured to serve contractors of various sizes, addressing a range of liability exposures. Nathan McCabe, Canada Professions practice leader at CFC, noted that the construction sector is Canada’s largest employment sector, with significant mega-projects on the horizon. “We’ve spent time listening to what our brokers tell us their clients need,” McCabe explained. “Our new solution covers regulatory requirements for larger contractors while bridging the gap for smaller businesses needing cost-efficient, broad E&O cover.”
Key features of the policy include coverage for E&O, cyber risk, pollution liability, and professional services under a single policy. This comprehensive approach aims to reduce potential coverage gaps and streamline the insurance process for contractors. Notably, the policy includes rectification cost coverage, allowing contractors to correct mistakes before they result in formal claims – a feature not typically found in standard E&O offerings.
The policy is available with entry-level pricing starting at $500, potentially making E&O coverage more accessible to smaller contractors. Additional benefits include access to cyber services such as threat intelligence and security alerts through CFC’s mobile app, Response.
This development follows recent updates from CFC, including the introduction of Cyber Proactive Response (CPR), a cyber insurance product designed for businesses with annual revenues up to $250 million. The CPR policy features unlimited reinstatements, no deductible, and new coverage elements to support a broader range of cyber risks. In March, CFC appointed Emma Suschkov as cyber development manager in Canada, based in Toronto, to support brokers and clients in the region while enhancing the company’s cyber underwriting capabilities.
