How does professional liability insurance in Calgary work?
Sometimes known as “errors and omissions insurance,” professional liability insurance protects you from any claims that arise from service or advice you have provided to a client. Usually, a client sues due to financial loss as a result of a perceived or real mistake or misrepresentation in the course of your service or as a result of your advice. Professional liability insurance covers your legal expenses, including your defense as well as any awards or settlements (up to your policy limit) for covered claims.
EasyCover offers three levels of protection:
- $1 million
- $2 million
- $5 million
This is the maximum amount your insurance will pay out over the 12-month policy period for all claims combined. The level of protection you choose will depend on your industry, your clients, the value of your service or advice, and the estimated costs of a legal case.
For each claim, you’ll pay a deductible. This deductible is determined by your company’s revenue and ranges from $250 to $1500. Let’s say you had two covered claims and a deductible of $500. You’d pay $1000 that year in deductibles, but the rest of your legal costs would be covered.
Calgary professionals have liability insurance coverage to protect their personal and business finances. Even if you’re innocent, you still have to pay for your defense. Professional liability insurance helps Calgarian professionals avoid financial hardship in the event they’re sued.
In certain professions, professional liability insurance is required by law. For example, in healthcare, this coverage is required due to the high stakes and high incidence of litigation. If you’re a contractor, you’ll find that many contracts stipulate that you must have professional liability insurance as well. This type of coverage gives your clients peace of mind that they’ll get their money if they suffer a financial loss as a result of your service or advice… and you can work with confidence because you know you’re protected.