Design Professionals’ Errors & Omissions Insurance Coverage: A Survey of Canadian Cases Involving Architects, Engineers and Their Liability Insurers

Author: Neo Tuytel

Revised: November, 2004
Published: December, 1995

The purpose of this paper is to provide an overview of cases concerning errors and omissions insurance for architects and engineers.

Like other professionals, the scope of liability by architects and engineers appears to be expanding inexorably. Unfortunately for professional liability insurers, recent developments regarding their duty to defend and obligation to indemnify have been no more positive. Canadian courts (including our Supreme Court) continue to struggle with the nature and effect of “claims made” policies and in the view of E&O insurance, perhaps all too rarely give effect to exclusion clauses.

The body of the paper will begin with a brief synopsis of decisions which have broadened the scope of design professionals’ liability for negligence and misrepresentation. The next two sections will describe coverage for architects’ and engineers’ errors and omissions under both professional liability and (notwithstanding the "professional services" exclusion) comprehensive general liability policies. The final section, before the author’s conclusions, will briefly discuss the potential for equitable contribution between the E&O and CGL insurers of design professionals.

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