As professional in Ontario, Canada, you should do everything humanly possible to protect yourself and your business. There are plenty of things that you can do. While some are considered optional, others are not. Professional liability insurance is a necessity. Every single business in Ontario should have some type of PLI insurance coverage. By working with a professional liability insurance broker, you’ll be able to discover what options are available to you. A PLI broker will also work with you directly to ensure that you’re able to get the right coverage for your individualistic needs and business type.
Within this guide, you will learn about the exposures that are going to be covered by professional liability insurance in Ontario.
What Is Professional Liability Insurance?
First and foremost, you should learn a little more about professional liability insurance. What is it exactly? Well, this insurance is often referred to as E&O or errors and omissions insurance. Every professional in Ontario is going to work diligently to ensure that they deliver a good service to their clients. Nevertheless, it is true that things can go wrong. Even if you work as cautiously as possible, you can still make a mistake along the way. You could wind up calculating something wrong and that would be an error on your part.
If your mistake hurts the client in some way, there is a good chance that they’re going to retaliate against you. Most will do so by filing a lawsuit against your firm. When this happens, you’re going to find yourself in a tough spot. Thankfully, you can protect yourself by acquiring a sufficient amount of errors and omissions insurance. This insurance will protect you in the event of lawsuits caused by errors and omissions on your behalf. It’ll also protect from negligence and other problems which are commonly caused by businesses like travel agencies, web developers, printers and publishers, and appraisers.
More details about what is actually covered will be explored in greater depth below.
Now, it is time to learn about the benefits of having PLI insurance. When working with an errors and omissions insurance broker, you’ll discover that this type of insurance is going to cover legal costs. In Ontario, many legal cases will drag on for many months, if not years. Paying for an attorney over that period of time can seem impossible. Thankfully, PLI insurance can help. With this type of indemnity insurance, which is often purchased by bailiffs, event managers, and actuaries, you’ll be able to get the best legal representation and your insurance will cover the costs, up to the policy limits. Anyone who could potentially be sued should definitely get covered right away.
After all, you shouldn’t have to give up without a fight. You should be willing to defend yourself in the courtroom. Having the right insurance will give you the ability to do just that.
Despite having the best representation, there is still a chance that the court is going to rule against you. If this happens, you’re going to be looking at a hefty settlement. Some companies have actually been forced to file for bankruptcy after losing a court case. Suffice to say, the settlement can be pretty massive. Just remember that you do not have to pay for this yourself. It is possible to protect yourself by working with a professional liability insurance lawyer and getting the coverage that you need.
With PLI insurance, you will be covered. The insurance will cover a significant portion or all of the settlement cost. This ensures that you’re able to continue working!
Libel And Slander
There is a real possibility that you’re going to be using advertising at some point or another. If you’re not careful, there is a chance that your adverts are going to damage another company or individual. If this happens, you may be sued for libel or slander. Again, this can be a very long process and the settlement could be substantial. This is another reason that you need to get errors and omissions insurance. This insurance will cover the costs of the trial and any settlement that you’re required to pay out. As you can already see, professional liability insurance is a necessity and not optional.
Pretty much everything has been done at least once. In fact, it can downright difficult to come up with new ideas. Even if you do not mean to, there is a possibility that you’re going to abuse someone else’s copyright at some point in the future. This is another problem that many businesses face and it could result in a long lawsuit. There is also a possibility that the court is going to rule against you. If they do, you’re going to be required to pay the victim a lot of money. Anything can happen and infringing on someone’s copyright. It might seem farfetched, but it does happen.
While it depends on your policy, there is also a chance that PLI insurance is going to cover the costs of temporary staffing and many even independent contractors. If something happens and your company is forced to let go of your employees, this insurance can help. It’ll allow you to find the temporary workers that you need to keep your business afloat for the long run. Really, PLI insurance can make the difference between filing for bankruptcy and keeping your business around for many years to come. Finding an E&O insurance broker immediately and getting the coverage that you need is highly recommended.
What Is Not Covered?
Now, it is wise to learn about the things that are not going to be covered by E&O insurance. While this type of insurance will cover a great deal, it is not going to cover everything. Just remember that as a professional, it is your responsibility to know when to apply for Professional Liability Insurance coverage as that there are many additional insurance options that also provide protection for businesses, but may not be adequate policies in terms of fully protecting your business.. You can easily find what you need by working with a good PLI broker. Bodily injuries and property damages will not be covered by PLI insurance. You should also know that fraudulent acts, employment problems, false advertising and personally identifiable information are not going to be covered either.
You need to understand the coverage can vary from one policy to the next. Speak with a broker to learn what you’re covered for and what you’re not covered for.
Other Frequently Asked Questions about Professional Liability Insurance
- How much coverage do I need?
- How do I get a policy?
- When will I need to be insured?
- Who needs this type of insurance?
Other useful posts
- Canadian insurance companies that provide PLI
- How does the claims process work?
- What is the cost?
- How do I apply for a policy?
- How do I qualify for coverage?
- What is the purpose of getting insured as a professional?
- How Long Does it Take to Get a Quote?
Professions we commonly provide insurance for: