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Get the best professional liability insurance in Canada

Even the most skilled professionals can make a mistake. Protect yourself with errors and omissions coverage today. Request a free quote online.

How to get business insurance with

  1. Share information

    Tell us a little about your business operations and your coverage needs.

  2. Connect with an expert

    We'll connect you with our small business insurance partner to finalize all the details on your policy.

  3. Secure your coverage

    Bind your customized, affordable coverage – so you can grow your business with peace of mind.

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What is professional liability insurance?

Professional liability insurance, also known as errors and omissions insurance or E&O, is a type of business insurance that provides financial protection in the event a client holds you liable for your work. 

If you make an error that results in financial loss or your work isn’t up to par with your client’s expectations, they can sue. Having professional liability insurance helps cover the costs of any lawsuits and compensatory damages. 

Who needs professional liability insurance in Canada?

Consider professional liability insurance if you provide advice, offer services, or develop products for clients. One mistake, even a small miscommunication could bring immense financial loss to your client’s business, leading to the downfall of your own. Some professions, such as lawyers and accountants, may require professional liability insurance to practice while others that should consider it include:

  • IT consultants
  • Management consultants
  • Software developers
  • Actuaries
  • Architects
  • Interior designers
  • Graphic designers
  • Personal trainers
  • Fitness instructors
  • Photographers

What does professional liability insurance cover?

This form business insurance typically includes coverage for legal fees and damages associated with the following:

Professional negligence

Errors and omissions

Media and advertising

Why do I need professional liability insurance in Canada?

Everyone makes mistakes, and sometimes one small mistake can lead to a large lawsuit. A client can also make claims of professional liability against you, even if you aren’t necessarily at fault. Having professional liability insurance in your back pocket ensures financial protection for you and your business against lawsuits alleging negligence, misconduct, and failure to deliver services as promised.

Here are a few potential situations in which having professional liability insurance could help cover any incurred legal fees and damages:

  • As an accountant, you make an auditing error that costs your client millions in taxes
  • As a personal trainer, you injure your client when teaching them a difficult skill
  • As a software developer, you forget to back up a client’s old file with valuable data
  • As a photographer, you lose the memory card with all your client’s wedding photos
  • As a consultant, your project doesn’t meet your client’s expected return on investment
  • As a copywriter, the piece you wrote for a client is held liable for copyright infringement

How much does professional liability insurance cost in Canada?

The cost of professional liability insurance can range anywhere from $150 to $2,000 annually, depending on the amount of coverage and your level of inherent risks. To find out how much you'll be paying start your online quote with us today.

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How to avoid a professional liability claim

  1. Review contracts

    Make sure each job you take comes with a contractual agreement outlining your deliverables clearly and in particular detail. Have a lawyer review any contracts before you sign them to check for missing information or required additions. The most iron-clad work contracts should give you a timeline for completion, limitations of liability, and a process of working out any potential complaints. You wouldn’t want to get sued for professional liability because you didn’t have a contract in place that outlined expectations for both you and your client.

  2. Communicate clearly

    Communicating clearly with your client is a good way to mitigate the risk of a professional liability claim whether that means asking for feedback on a prototype or confirming project deadlines. You should always check in with their expectations at different stages in the process as your final product could be nothing like what your client wanted if there was no communication in between.

  3. Limit your workload

    Limiting your workload doesn’t mean only focusing on one project at a time. It means you should be aware of what you or your business can handle and where your expertise lies. If you have three employees, don’t overburden them with excess work by scaling up with more clients. Trust with employees takes time to learn but can dissipate without due process and care.

  4. Double-check everything

    Double-checking your work is a simple, yet often disregarded, method that ensures your work is quality and comprehensive. If you accidentally leave in a typo on a flyer you designed, reprinting the entire batch could cost your client (and possibly you) thousands. An overlooked but simple bug fix could cost a technology company millions if left unattended. Small mistakes can lead to big claims, so double-checking is always worth the effort.

  5. Follow best practices

    It’s important to follow any laws and regulations in your industry to uphold the best standard of work possible and prevent any professional liability claims. For instance, if you’re a CPA preparing the financial documents for your client’s business, be sure to follow the CPA Accounting Handbook regulations. Rules are put in place to protect both you and your clients. No party wants one wrong move to require lawyers and lawsuits.

Factors that go into your professional liability insurance quote

Each industry brings a different level of risk. Generally speaking, the riskier your profession, the higher your professional liability insurance quote will be. A pilates trainer that teaches one class a week won’t be paying as much as an IT consultant working with millions of dollars on the line. 

Get the best professional liability insurance today.

Request a complimentary quote from one of our qualified brokers. They will walk you through all your coverage options to help you find the right coverage at the best price.

Frequently asked professional liability insurance questions

What’s the difference between professional liability insurance and general liability insurance?

What’s the difference between professional liability insurance and errors and omissions insurance?

When is professional liability insurance required?

How much professional insurance do I need?

How do I get professional liability insurance in Canada?

Is professional liability the same as professional indemnity?