How Much Professional Liability Insurance Coverage Do I Need?

Every profession is unique, with different exposures and risks. Depending on the level of these exposures and risks, you will need a specific amount of professional liability insurance (PLI) coverage. The idea is to protect you and your company from financial loss associated with third-party claims and civil lawsuits. Saying that, almost every profession, including accountants, consultants, paralegals, chiropractors in Ontario, Canada should have in the range of $1,000,000 Professional Liability Insurance along with $1 – $2 Million in CGL depending on the risk exposures.

professional liability insurance coverage for different professions

What Does Professional Liability Insurance Cover?

Professional liability insurance protects against financial loss associated with copyright infringement, negligence, liable, errors, and slander. If at any time you need to hire a litigation team, the insurance will kick in and help cover the expenses. Depending on how much coverage you have, the insurance may cover all or only part of the overall expense.

In addition to this, if you are lucky enough to encourage the complainant to settle out of court, the insurance will help reduce your out-of-pocket expenses. Again, the amount you pay out-of-pocket will depend on the amount of your coverage. For example, if you carry a $1 million E&O policy, you may not need to pay a dime, if the settlement does not exceed the coverage amount, other than deductible amounts. Even if your coverage is minimal, the insurance will help reduce the impact of the outcome of your case.

PLI insurance also covers monetary judgments which in other words is when court orders you to pay for damages, which have been known to bankrupt companies. This is the only real protection you will have against major financial loss associated with civil lawsuits and judgments.

Who Needs Professional Liability Insurance?

Every professional offering services in Canada must obtain professional liability insurance. In fact, you must obtain this coverage prior to applying for your business license or contracting for work, because a copy must be included with your application. If you do not provide this information to the governing body or the party hiring you, your application may not be accepted.

How Much Coverage Do I Need?

Understanding the importance of errors and omissions (E&O) insurance will help you determine how much coverage you will need. Licensed professionals operating in Canada are require to carry E&O insurance. The governing bodies and licensing agencies for professionals, such as architects, interior designers, attorneys, doctors, podiatrists and mediators, are responsible for protecting Canadian consumers from fraud. One way they are able to do this is by requiring all licensed professionals to obtain and carry professional liability insurance.

Each professional is required to carry a specific amount of coverage. The government and licensing agency work together to determine this amount. So, if you have any questions, you should contact your professional licensing agency or governing organization that is responsible for enforcing laws associated with your profession.

The amount of coverage requirement for each profession will vary. However, you should expect to be required to purchase an E&O policy with a coverage limit between $500,000 to $1 million.

How To Determine The Rate Of E&O Insurance?

The best way to determine how much you will need to pay monthly or annually for PLI coverage is with a free quote. Just contact your local insurance company or broker to request a free quote. You can also read on our website if you want to learn about how to get professional liability insurance as a professional in Canada. It is recommended to obtain quotes from at least three insurers. Once you receive the quotes, you can compare them to see which company is offering the best deal and rates. You should not base your final decision on the lowest rate, because some insurers will try to pull in new customers by offering them low rates for policies with limited coverage.

Free quotes are available via phone or online at most insurance company websites.

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Professions we commonly provide insurance for:

Academic Testing Centres
Accident Investigation
Accident Prevention Consultants
Accountants
Actuaries
Adjusters
Adoption Agencies
Advertising
Advertising Agencies
Advertising Agents & Services
Aerial Mappers
Agents
Agrologists
Agronomists
Alarm Monitoring Services
Allied Health Professionals
Alternative Dispute Resolution Firms
Alternative Energy
Answering Services
Anthologist
Anthropologist
Appraisers
Arbitrators & Mediators
Arborists / Tree Surgeons
Archaeologists
Architects
Architects & Engineers
Architectural technicians and technologists
Associations
Attorneys
Auctioneers, Auction Houses
Authors
Bailiffs
Blueprint & Photocopy
Boat Registrars
Bookkeepers
Broadcasters
Building Designers(Bill 124)
Business Brokers/Managers
Business Consultant
Business Enterprise Agencies
Business Training Courses
Cabling Designers
Camera & Photo Supply Stores
Careers Advisory Service
Catering Consultancy
Cereal Growing Advisors
Chambers of Commerce & Trade
Charities
Chiropodists
Chiropractors
Civil engineers
Claims Adjusters & Administrators
Collection Agencies
Commercial Printer
Communication Consultants
Company Formation
Company Search Agency
Conference & Event Management
Conference Facilities & Services
Conservation Consultants
Conservation Organizations
Consultants
Consumer Organisations
Contest Managers
Contractors Accountants
Convention Planners
Copywriters
Counselling & Advice Services
Court Reporters
CPA/CMA
Credit Reference Services/Bureaus
Custom House Broker
Customs & Forwarding Agents
Data Processing Services
Database Managers
Day Spas
Decorators – Interior
Dental Laboratories
Designers
Dieticians (Consulting)
Directors
Directors and Officers
Documentary creators
Employment Agencies
Employment Agencies/Recruiters
Employment Placement Agencies
Energy Audits & Assessments
Engineers
Environmental Engineers
Event Planners
Excess & Umbrella Liability
Filmmakers
Fitness Clubs
Foreign Legal Consultants
Holistic Professional
Home inspectors insurance
Immigration Consultants
Independent Contractor
Industrial Designers
Information Technology
Interior Designers
IT Contractor
IT Specialist/Technician/Programmer
Journalists
Lawyers
Lawyer’s Excess Professional Liability
Long Term Care
Management Consultants
Mediators
Medical Clinics
Medical Devices
Medical Professionals (Malpractice Insurance)
Medical Related
Medical Student Malpractice Insurance
Mortgage Brokers
Multimedia designers
Naturopaths
New Media
Occupational Health and Safety Consultants
Paralegals
Photographers
Placement Agencies
Podiatrists
Private Investigators
Process Servers
Product Designers
Professional Entertainers
Professional Organizer
Professionals Liability
Project Managers
Property Managers
Publishers
Publishers and Printers
Quality Control Consultants
Recruiters
Recruitment and Employment Agency
Recruitment Consultants
Research & Development
Roofing Consultants
Safety Engineers
Service Organizations
Solar & Wind Farm Engineers & Consultants
Spa Package
Structural Engineers
Sub-Contractor
Surveyors
Tax Prepares
Technology Companies
Therapist Professionals
Town / Urban Planners
Training Providers/Trainers
Translators etc.
Travel Agencies
Travel Agents
Travel Agents, Tour operators
Web Designers
Web-Site Designers
Workplace Engineers & Consultants