Professional Liability Insurance in Ontario
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Business owners should focus on their business goals without worrying about potential risks to their business. Business insurance is one essential way to safeguard your business to protect yourself from unforeseen events.
Professional liability insurance is one of the essential types of business insurance you may need if you provide professional services or advice. For example, if you’re a psychologist, coach, or accountant.
At EasyCover, we are dedicated to finding you affordable professional liability insurance rates and insurance coverage that match your business needs.
What Is Professional Liability Insurance?
Professional Liability Insurance, also known as errors and omissions insurance, protects your business when a client is unsatisfied with a service or advice you provided and files a claim against your business.
Many businesses have commercial general liability insurance (CGL) and believe it’s enough protection. However, CGL insurance covers third-party bodily injury or property damage and does not provide coverage for financial damages resulting from services or advice offered in a professional capacity.
We keep it easy for you to get professional liability insurance in Ontario with EasyCover’s online tool. Get a free quote or secure your policy in just three easy steps:
Step 1: Enter your information for your free quote.
Step 2: Select the policy that works for you.
Step 3: Pay online and receive your policy documents.
In as quick as five minutes, you can find, secure, and pay for your professional liability insurance policy. Ontario experts can rest easy knowing that their reputation and finances are protected by EasyCover’s professional liability insurance in Ontario. It’s fast, easy and simple.
What is the Difference: PLI and CGL Policies
Professional liability insurance is also different from CGL insurance; each policy type is triggered by several types of losses and the policies are structured differently with respect to how they respond to claims.
Most commercial general liability insurance policies are written as an occurrence form; whereas professional liability insurance policies are written as claims-made policies.
The industry standard is for insurance companies to offer professional liability insurance coverage on a claims-made and reported form. This means that the policy will only respond to claims made against you and reported to the insurer within the policy term.
The EasyCover professional liability insurance policy follows the industry standard and is written as a claims-made form. However, EasyCover offers an unlimited retroactive date.
A retroactive date means we will respond to new claims made against you for work which was done before you purchased your EasyCover policy as long as:
- You only became aware of the grievance against you during the policy term and
- The claim is reported to us during the policy term.
Many other insurers set the retroactive date to the policy inception date, meaning you would not have coverage for work that you did before the insurance policy’s inception date.
What does Professional Liability Insurance Cover?
Typically, a professional liability insurance policy covers judgment, settlement, and defense costs. Even if the allegations against you are found to be untrue in court, you could still spend thousands of dollars on legal defense costs.
Hefty legal fees can bankrupt a small company or contractor and have a lasting impact on your professional reputation and future business goals. If you want to know more about professional liability insurance, our EasyCover experts can help you. We offer a free business insurance quote in minutes.
EasyCover’s Ontario Professional Liability Insurance
What Does Professional Liability Insurance in Ontario Cover?
Professional liability insurance covers legal costs and potential damages if a business is found to be professionally negligent or has failed to deliver professional services. This type of insurance covers errors, omissions, giving incorrect advice, or breach of duty. Common PLI coverage options:
- Professional negligence – When your client believes that they did not receive the service they were promised, they could file a lawsuit for reimbursement. In this case, your Ontario professional liability insurance kicks in to cover all resulting financial losses and legal fees.
- Media & Advertising – While typically you would purchase a media insurance policy to cover advertising and media activities, some PLI insurance policies cover these risks, including if your client gets sued for defamation, libel, and slander.
How Much Does Professional Liability Insurance in Ontario Cost?
Every business has its own risk factors that require a certain set of insurance options and policy limits.
Your professional liability insurance rate depends on things like the industry you work in, your annual revenue, the number of employees you have, your insurance claim history, the level of your business risk, and the value of your product or service.
How Much PLI Coverage Should I Get?
Hiring an insurance broker for your business is one of the best ways you can ensure you’re getting the right amount of insurance that fits with your business goals and financial situation. An experienced broker can estimate the risks associated with your organization and therefore determine your insurance needs, including your coverage limits, insurance rate, deductible amount and more.
Ensure you have the best-suited policy for your business, so you’re not underinsured or paying more than you need for your insurance.
Professional Liability Insurance in Ontario: FAQs
Professional liability insurance (also called errors and omissions insurance) covers businesses that provide a professional service or advice if they make a mistake or don’t deliver the promised services. Directors and officers insurance is protection for alleged negligence aimed at the officers and directors on the board of a company.
There are certain professions that are legally required to carry professional liability insurance in Ontario. For example, the Real Estate Council of Ontario requires all real estate agents to have professional liability insurance. Lawyers in Canada are also required to have PLI insurance.
Professional liability insurance does not cover intentional, criminal, or fraudulent acts. It also does not cover cases where cost estimates and guarantees were given or incorrect profit estimates.
Moreover, any claim for bodily injury or property damage filed by a third party will not be covered by an Ontario professional liability insurance policy; that would require a commercial general liability insurance policy.
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