Malpractice vs E&O

Are Medical Malpractice And E&O Insurance The Same?

Insurance can be a very complicated subject. While it is very complex, it is something that businesses in Ontario cannot go without. If you want to make sure that you, your business, your employees, and your clients are protected, you are going to have to obtain the right insurance. While there are tons of different insurance providers along with different polices, the most important thing to remember is that they are not all created equally. Some polices will protect you against certain lawsuits that are caused by bodily or property damage, whereas others will protect you against lawsuits that are a result of misinformation or mistakes on your company’s behalf.

Understanding E&O Insurance

There are certainly many similarities associated with errors and omissions insurance and other types of insurance products. Nonetheless, they’re also very much different. E&O insurance is more suitable for certain types of businesses, while medical malpractice tends to be more desirable among medical professionals. At the same time, the specific types of protections provided change from E&O to medical malpractice. E&O is designed to protect the business from mistakes that result in financial loss.

If you provide a service to the consumer and charge a fee, then you face some degree of risk. If the service is not completed properly or within a timely manner, this could result in the client losing money. Alternatively, their reputation may be damaged. In both situations, the client will blame you and they’ll file a lawsuit to try and recover their losses. This is where errors and omissions insurance will be helpful.

What Is Medical Malpractice Liability Insurance

Owning a business in the medical healthcare field can be very rewarding. You get to help people and make them smile on a daily basis, but sometimes mistakes happen and this can make the industry very risky. This is why medical malpractice insurance is a must for any healthcare business owner or service provider. Fighting a malpractice lawsuit can be time consuming and expensive with all the associated court costs and lawyer fees. This is not to mention what will happen if the opposing party wins the suit. Even if you win the lawsuit, you are still going to be out quite a bit of money in court costs and lawyer fees alone.

Medical malpractice liability insurance protects healthcare professional like doctors, dentist, and nurses from mistakes and errors that result in bodily harm to a patient. It can also protect the medical professional against any mental anguish charges.

Both Are Often Required

It is also important to remember that medical malpractice insurance and errors and omissions insurance are both frequently required in the province of Ontario. Canadian physicians, who wish to offer their services to Ontario residents, will be required to acquire medical liability insurance. This insurance can be obtained directly from the Canadian Medical Protective Association, or CMPA. Once the physician has paid their membership fee to join the CMPA, they will be provided with protection in the event of medical malpractice lawsuits.

On the other hand, errors and omissions insurance is generally obtained through a 3rd party insurance provider or broker. Nonetheless, both types of insurance are commonly required!

Guide to Getting Bid Bonds for a Tender

What are Bid Bonds?

A bid bond gives a guarantee that the bid that has been submitted for a project is accurate. If you are the highest bidder, you win the project and must take the job because there are consequences if you back out of a job. A claim can be made against the owner which you are responsible for paying.

What does a bid bond cost?

Bid bonds cost differ depending how big the contract, for example for smaller contracts within 350k and under usually cost around $100 each or $250 for unlimited bonds for the year. For larger contracts meaning 350K and over are free of charge. To get a proper quote, you must visit our website and fill out our application.

Where can you get bid bonds?

Surety Kings provides you with all the bond forms as every industry standard forms. If the obligee requires their specific bond forms, you must get the forms from them.

How do Bid Bonds work?

Bid bonds are submitted to the obligee with your submission. If your bid is inaccurate, a claim could be filed against you which you must pay, and you will most likely lose the job. Without valid bonds, the bid proposals are rejected. If you are awarded the job, you must accept the job and provide a performance bond to start with the project. The bid bond guarantees that the obligee will pay the difference between the tender price and the second highest bidder. This only happens if the principle fails to enter the contract as agreed by the obligee. Contractors like using bid bonds as they are not expensive and provides assurance to the owner. Another reason why contractors and owners like using bid bond are that it gives an idea that the bidding contractor is supported by the financial backing of a surety company and they are qualified enough to complete the project.


The owner should tell all the bidders a bid bond before making any bids because it provides assurance to him/her that he will complete the job. Suppose you want to bid $150,000 on a job, and you are the highest bidder, which means you must take the job you selected. If you back out there could be a claim, and you must pay the difference in your bid with the second highest bidder.

Bid Bonds & Performance Bonds work Together:

The first thing to bid on a project or a public job you must be able to get a bid bond, which means that the bid you submit is accurate and that the surety company will then write a performance once you are awarded the job. Once you get assigned the job, you must get a performance bond which guarantees that you will finish the work and not leave it unattended.

How to get a Bid Bond?

First, you will need to send a bid invitation letter to your bond agency, with the bid bond request form and the job specification that you get from the obligee for all the bid bond claims. You will also be needed to provide personal financial, companies financials and other info which will help get a better rate. Credit is also looked over because if you have been awarded the job, you must have enough money to accept the position and also be able to pay the co-workers, contractors, and other staff.

Construction Bid Bonds claims can put you at risk

You are responsible for paying the claims of the bond fully, which could be the full amount of the bond which includes the legal costs. The agreement which you must sign to get your bond bid legal which pledges your corporate and personal assets in an event of a bond claim. Most bond agencies will not have enough time to explain all about the claims and how it puts you at risk and how to avoid them. If anything like this working with a bond agent, reconsider doing business with them. The bond agency should be contacted first against the bond claims.

How to avoid bond claims

Make sure that the bids you have submitted are accurate and obtain performance bond once you have been awarded the contract to prevent a complaint. As mentioned above that you are responsible for paying for any bond claims that you cause, which could be very high depending on the bond. If claims do occur, find out our company and how it can help you in these situations. If you need help understanding what your bond guarantees, don’t hesitate and contact a bond professional.

Before filing a bid bond and issue your bid, which will automatically guarantee that the underwriter will agree to file a performance bond if your bid is accepted. There is some information that Is needed which should be compiled when applying for a bid bond.

Typical questions asked on a bond bid application:

1. The quantity of your bond

2. What is the date of the bond

3. History of being bonded

4. The history of your company with its financials

5. Current, personal credit score

Bid Bonds help the selection of specific jobs and projects to run smoothly. The most important thing is that they provide owners in the way of assurance that the bidder will select the position and appropriately complete without any problems such as cash flow. Without this bonds, the owner would be worried if the bidder would finish the job correctly or leave it unattended.

Cost: Bid Bond Premiums:

Contractors pay surety agency a premium which secures a bid bond for them. Bid bonds cost vary due to many factors such as the bid amount, contract terms and other conditions mentioned above. Usually, bid bonds premiums are within 1%-5% of the sum. Before preparing for a bid, make sure that that the project requires a bid bond and if it does, what is the price of the bond. This will help you determine the price that you will pay to secure the bond.

Understanding The Common Probate And Court Surety Bonds In Canada

The Canadian court system often receives a bad reputation, due to its inability to operate rapidly. What consumers fail to realize is that the system works better than it could. In fact, the system could easily be brought to a grinding halt, if the requirement for surety bonds were dropped all together. The Canadian courts utilize surety bonds frequently for a handful of different reasons. Whether you’re dealing with the death of a loved one or wish to become someone’s guardian, you’ll most likely be required to obtain and submit bonds. Additional details will be provided below.

Appeal Bond

The Appeal bond isn’t the most common, but some Canadians will stumble across a situation, which requires them to obtain this type of surety bond. As the name implies, the bond is utilized, when the individual in question wishes to make a court appeal. It is required by the court and puts measures in place to protect other parties from potential losses. This is the case, because the appeal bond guarantees that the principal will pay the sum of the original judgment, if they lose the appeal.

appeal and conjunction surety bond

The Injunction Bond

The injunction bond is incredibly important and helps to protect those that have been wrongfully accused by another. This is a type of surety bond, which will cover all damages the defendant suffers, if the court determines that the plaintiff’s lawsuit is wrongful. Suffice to say, it is the plaintiff’s responsibility acquire the bond and submit it to the court. This must be completed, before they’ll be able to officially bring their case to the court.

Who Does A Probate Bond Protect?

Death is inevitable and can occur without a moment’s notice, leaving family members emotionally, physically, and financially devastated. Sometimes an heir or beneficiary will be mentally or physically capacitated, making it very difficult for them to manage an estate or trust. In this case, the heir or court will appoint a fiduciary to perform the duties and oversee the estate. This gets a little risky, especially when a large sum of money is involved. In order to reduce these risks, the court will require the fiduciary to post a probate bond.

This type of SURETY BOND is designed to protect the beneficiary from financial loss, in the event of incompetent and dishonest behavior, displayed by the fiduciary.

What Is A Probate Bond?

probate bondsA probate bond is a type of surety bond that acts as an insurance to protect heirs from fraud. It genuinely is not uncommon for a trustee or financial advisor to become caught up in their duties. When this occurs, money is often involved. Embezzlement is considered a criminalistics activity that involves the unlawful use of someone else’s assets. The probate bond will protect the estate and if at any time, the court finds the fiduciary guilty of such behavior. A claim will be filed with the bond company and the estate will be awarded the full amount of the bond.

When this occurs, the surety will go after the fiduciary and make them repay the loss.

Guardianship Bond

There are many situations, which will require a Canadian resident to acquire a guardianship bond. Generally, this surety bond is utilized, when someone wants the court to appoint him or her as the guardian of another individual. This can happen, due to the third party’s age or an illness or accident, which has left them incapable of caring for his or her own finances and assets. In this type of scenario, the bond protects the said third party, which will also be classified as the obligee. This individual will receive protection from malicious behavior on behalf of their new guardian.

Bankruptcy Bonds

As the title suggests, these bonds are utilized, when a person or company files for bankruptcy. Within this type of surety bond, one individual will be designated at the trustee. This person will become responsible for negotiation between the debtor and their creditors. If you become a trustee, you will be required to abide by the rules of the bond and serve both parties to the best of your abilities, while also obeying all bankruptcy laws.


Truly, the Canadian surety market is incredibly diverse. There are numerous bonds and each one of these products will serve a purpose. You may initially be against the ideal of spending money on a bond, but you need to understand that the bond is there to provide protection to all parties involved. Once you’ve digested this information, you will agree that it is well worth the minute cost.

Surety Bonds – What exactly are they?

Surety Bonds are required by businesses in order to bid, qualify, or execute a certain project. In Canada, it is common for construction companies, travel agencies, warehouses, and exporters to obtain a surety bond. Below you will read about what exactly a surety bond is and who is involved in a surety contract. If you need more information, click here.

Surety Bonds is a type of contract between three surety bond

The three parties are:

1. Principle – Person who owns a business that purchases the bonds for their work.

2. Oblige – are the entity that require the bonds from the principle. They normally are government agencies.

3. Surety – is the insurance company that provides the company with the bonds.

The surety guarantees the oblige that the principle will follow the terms of the bond. If the principle does not follow the terms and condition of the bond, the oblige could claim to recover there loses. The surety company might have to pay some of it by honoring the bond as well.

Who needs it?

Surety Bonds are required by businesses and professional who provide services to consumers. There are two different types of bonding categories, commercial bonds and contract bonds.

1. Commercial bonds are used for business owners, entrepreneurs and other working professionals. Commercial bonds ensure that people will do their job according to licensing laws and others rules and regulations. For example: auto dealers, travel agents and more.contractor surety bond in canada

2. Contract Bonds are used to obtain a guarantee from construction professionals that they must follow the rules and standards when they work on a construction project. They ensure that the project will complete on time and up to expectations.

Cost of a surety bond?

The Surety bonds are dependent on three factors:

1. Credit score

2. Companies financial

3. The project price

For Businesses, Surety companies do not want to give bonds to someone with a bad financial history. The surety bond company asks for the business owner’s personal credit score and net worth because credit provides an indication of the person ability to pay their debts on time and net worth shows an individuals financial strength. Someone with a bad credit could also get the approval by the surety company but the only difference is that the price for them may be higher then with someone with a good credit.