Professional Liability Insurance for Calgary Management Consultants

What does management consultants professional liability insurance cover in Calgary?

Professional liability insurance helps management consultants in Calgary cover legal costs if you’re sued for causing financial loss due to your alleged negligence in providing that service. This includes making a real or imagined unintentional mistake.  Legal costs include defence expenses, settlements and judgement awards – with coverage up to your chosen policy limit. 

Here at EasyCover, we offer three levels of protection for management consultants: 

• $1 million 
• $2 million 
• $5 million

Depending on which level of protection you choose, that will be the maximum amount that is paid out by your management consultants’ professional liability insurance. In Calgary, management consulting firms will typically choose a policy limit based on the likelihood of a lawsuit and expected costs, the value and number of contracts, and contractual requirements. It’s important to remember that no matter how many claims you make in your 12-month policy period, the policy limit is the total amount that will be paid out. 

One bonus of choosing EasyCover is our Calgary management consultants’ professional liability insurance includes “retroactive cover.” This means you’re covered for claims brought during your policy period that relate to negligent mistakes or acts committed by your business prior to your policy start date. You can choose to cover from a date of your own choosing or back to when your business was established. 

What insurance coverage does a management consultant in Calgary need?

We recommend management consultants in Calgary carry professional liability insurance. However, there are additional business insurance coverages provided by EasyCover that you might consider: 

• Cyber liability 
• Commercial general liability 
• Directors and officers (D&O) liability 

Your business may not require all of these, however, most businesses carry commercial general liability and we strongly recommend cyber liability given the rise in data breaches and cyberattacks. 

Commercial General Liability Insurance (CGL) 

Commercial general liability insurance, sometimes known as CGL insurance,  protects your business if a client or third party is injured or their property is damaged due to negligence by you or an employee. For example, if a client is visiting your office and they slip and fall, hurt themselves and decide to sue you. CGL coverage would respond and provide legal defence  

Commercial general liability insurance is considered a “bare minimum” coverage for all businesses. If you have professional liability but leave out this important protection, your business may be vulnerable. The minimum coverage offered by EasyCover for commercial general liability is $1 million but you may choose much higher limits. 

Directors and Officers Liability Insurance 

If your business has a board of directors, you should consider this coverage option to protect these individuals as well as the corporate entity, in the event they are sued personally for covered wrongful acts taken by a Board. Directors and officers liability insurance, also known as D&O insurance, is designed to offer protection for directors and officers for claims that are made against them by creditors, customers, vendors, and regulatory bodies.  This coverage may also reimburse the corporate entity if they have indemnified a director or officer for these covered claims. 

It’s important to note that claims arising from fraudulent, dishonest and willful conduct are not covered. 

Cyber Liability Insurance 

As businesses depend more and more on technology, Cyber liability insurance is a growing necessity. Cyber liability insurance can help cover the costs associated with a data breach or network security hack. This includes legal expenses, lost business income, extortion fees, regulatory fines, digital asset losses and more.