What Does Professional Liability Insurance Cover?

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.

professional liability errors and omissions coverage

 

Legal Costs

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.

legal fees cost

 

Potential Settlement

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!

settlement for pli claim

 

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.

libel and slander

 

Copyright Infringement

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.

copyright infringement coverage

 

Temporary Staffing

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.

temporary staffing for position

 

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.

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Other FAQ before purchasing professional liability insurance

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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