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What is professional liability insurance in Canada?

Professional liability insurance, a type of coverage for large and small businesses, can protect you against the unexpected – start your quote with our online business insurance calculator and bind your policy with us today.

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No matter how hard-working or professional you are as an entrepreneur, everyone makes mistakes. That’s because running a business is hard. This is true for new startups and long-standing companies alike. 

And no matter how long you’ve been in business, no one can account for the unexpected. 

As a business owner, professional liability insurance can protect you financially if you’re sued by a client. Read on to learn more.


Professional liability insurance coverage

Also known as errors and omissions insurance, this type of coverage helps protect business professionals against liability claims resulting from their advice or service. It can cover claims of negligence, malpractice, or accidents, providing entrepreneurs and business owners with peace of mind knowing a lawsuit won’t financially ruin their company.

Common coverages that are purchased with a professional liability insurance policy include:

  • Commercial general liability insurance (CGL)
  • Office contents insurance
  • Privacy breach expense insurance

Let’s say you’re a fitness trainer, and while advising a client with their workout, you end up causing an injury. If the client sues, having professional liability insurance on your gym insurance policy can help pay for the legal fees, medical bills, and awarded damages. 

On the other hand, if a client injures themselves by tripping over a dumbbell, you’ll need commercial general liability insurance instead. This is because the claim isn’t a result of your service, and therefore, doesn’t fall under professional liability. 


Who needs professional liability insurance?

If you own a small business, you should probably have insurance. Professional liability insurance is best suited for those that offer advice or services – from those in finance to tech consulting professionals, below is a list of business owners who should consider getting insured.

  • Financial services: non-audit accountants, bookkeepers, and tax preparers
  • Media & marketing professionals: copywriters, graphic designers, media buyers, and public relations consultants
  • Consulting professionals: brand consultants, business analysts, career advisors, and sales coaches
  • Tech & digital services: Video game developers, IT project managers, and SaaS consultants
  • Other professionals: interior decorators, librarians, mediators, statisticians, and tutors

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Why is insurance important for a business?

As a professional, clients view you as an expert in your field. For this reason, it’s important for the products or professional services that you provide to be up to a certain standard. Of course, everyone makes mistakes, which is why this type of insurance is an invaluable investment for any business. 

Professional liability insurance protects you if you make an error or omit important information by accident. This type of policy will also cover you even if you haven’t done anything wrong and the claim is frivolous. Below are examples of what this could include.

  • Misrepresentation of services
  • Professional negligence
  • Omission of information

In addition to the above, business insurance can also help cover losses in the event of an injury. For example, say one of your clients injures themselves as a result of your product, service, or negligence. You could be held financially responsible for expensive medical and legal costs. 


Other types of business insurance

Depending on the needs of your business, you may want to consider additional insurance. There are a variety of commercial policies that you can look into, including:

  • Medical malpractice insurance
  • Business contents insurance
  • Rip and tear coverage
  • Tools and equipment floater insurance
  • Non-owned auto insurance
  • Intellectual property insurance
  • Directors and officers insurance


Insurance considerations for home businesses

If you run your company from your home, you should also consider looking into your personal policies, such as your:


The bottom line

All in all, you should consider professional liability if you offer services or advice to your clients as part of your business operations. One small mistake can lead to immense financial trouble, but having the right coverage in place can your venture from unexpected losses.

APOLLO is making professional liability insurance effortless for individuals and small businesses. As Canada’s leading online insurance company, we deliver a people-first buying experience through time-saving technology and a deep understanding of the communities we serve.

Buy online in minutes, and receive your policy in real-time directly to your email. Visit apollocover.com to learn more and get insured today.


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