Professional Liability Insurance - Oakville
Protect Your Professional Services with St. Andrews
Even the most experienced of professionals make mistakes as much as anyone. We’re here to protect professionals and business owners from unexpected claims resulting from errors in the services provided. St. Andrews provides professional liability insurance as part of its business insurance solutions. We offer personalized services that fit the budget and needs of each business. Don’t let a small inevitable slip jeopardize your business operations and compromise financial stability.
What Is Professional Liability Insurance?
Also known as errors and omissions insurance, professional liability insurance is designed for businesses and professionals who offer professional services and advice.
Unsatisfied clients may claim that the advice or service you provided caused them to suffer financial losses. In that case, you must hire legal representation to defend you.
If you win the claim, you still have to pay the defence costs. If you lose, you would also pay a settlement. Legal costs of a professional liability insurance claim are a financial burden. But fortunately, your professional liability insurance policy will save you. PLI pays for the legal costs, including defence costs and settlement.
Get a QuoteWhat Does a Professional Liability Insurance Policy Cover in Oakville?
Professional liability insurance covers damages and legal defense costs for these situations:
- Professional negligent acts
- Contract breaches
- Copyright breach
- Errors and oversights
- Loss of Documentation
- Dishonesty
- Missed deadlines
- Project delays
What Isn’t Covered by Professional Liability Insurance in Oakville?
- Personal injury and property damage are covered by commercial general liability insurance.
- Product defects are covered by product liability insurance.
- Intentional and criminal acts aren’t covered by insurance.
- Employment-related issues are covered by employment practices liability insurance.
Who Needs Professional Liability Insurance in Oakville?
Although not all professions legally require professional liability coverage, Anyone who provides professional specialized services and advice to clients would benefit greatly from coverage.
It’s a protective measure that could save your business from a bad reputation and financial instability by covering all legal fees. Professional practices that may need PLI include:
- Financial Planners: Accountants, brokers, and financial and tax advisors. One mistake or miscalculation could cause substantial financial loss.
- Medical Professionals: Claims alleging negligence, surgical errors, and misdiagnosis could end their careers.
- Architects: Need professional liability to protect against claims of errors, from missed deadlines to designing buildings with structural issues.
- Consultants: Need coverage in case their advice causes financial loss or any damage to clients.
- Lawyers: Legal advisors and law firms need protection against claims that they provided incorrect legal advice. They also need this coverage to practice legally.
- It Professionals: Client claims of professional errors can lead to financial losses.
What is the Difference Between General Liability and Professional Liability Insurance?
General liability insurance is another type of commercial insurance. It covers instances of bodily injury, property damage, and advertising injury.
The main difference between general liability insurance and professional liability insurance is that CGL covers physical instances of damage, while PLI is more abstract, focusing on the quality of the services provided.
PLI is important for all businesses that provide professional services, and general liability insurance is essential for all types of businesses, as it protects them from unexpected accidents.
Is Professional Liability Insurance Mandatory in Oakville?
It’s not legally required to carry professional liability insurance in Oakville, Ontario. However, some professions are required to carry professional liability insurance coverage by their regulatory bodies. Here’s a list of professions that require PLI.
- Healthcare Professionals: Doctors, nurses, dentists, and other medical practitioners often carry malpractice insurance, a form of PLI, to protect against claims of medical negligence.
- Legal Professionals: Attorneys and law firms use PLI to protect their practice against claims of legal malpractice or errors in legal services.
- Financial Services: Accountants, financial advisors, and insurance brokers need PLI to cover potential claims related to financial mismanagement or inaccurate advice.
- Real Estate Professionals: Agents and brokers use PLI to protect against claims arising from misrepresentation or errors in property transactions.
- Consultants and Advisors: Business consultants, management advisors, and similar professionals require PLI to cover potential claims from clients dissatisfied with their advice or services.
- Technology Professionals: IT consultants, software developers, and tech service providers use PLI to protect against claims of system failures, data breaches, or service errors.
- Creative Professionals: Graphic designers, marketing consultants, and content creators may need PLI to cover claims related to intellectual property infringement or misrepresentation.
How Much Does Professional Liability Insurance Cost in Oakville?
The average annual cost of PLI for professionals and small businesses typically ranges from $500 and $2500+ per year, or $42 to $210 per month. Large companies and high-risk professions pay more.
The factors that affect the annual premiums of PLI:
- Higher coverage limits increase premiums.
- High-risk fields, like medicine and engineering, pay more.
- Claims history also impacts the insurance rates. A clean record helps lower premiums.
- Policies with lower deductibles have higher premiums.
- Business size is another factor. Large companies with more exposure pay higher rates.
- Location is also a factor. For example, Ontario rates are higher because of the regulatory and legal environments
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Get a QuoteHow to Get the Cheapest Professional Liability Insurance in Oakville
Business protection doesn’t have to be expensive. Here’s how to get cheaper professional liability insurance in Oakville.
- Implement risk management strategies in your company, with the cooperation of your employees.
- Work with an insurance broker to compare quotes from different insurance providers.
- Increase your deductible to lower your premium.
- Keep clean claims records.
- Bundles different business insurance products, like CGL and PLI, under one policy.
Examples of Professional Liability Insurance Claims
- A firm that delivers services related to digital marketing promised to finalize a marketing campaign before the launch of the client’s project. They missed the deadlines, and the client lost money because of the lack of marketing.
- A patient listens to Healthcare professionals’ advice to undergo an operation they don’t need, costing them money. For healthcare providers, PLI is known as malpractice insurance.
- An accountant made an error in calculations that cost the clients money and time.
- A financial consultant gave the wrong advice to a client, which led to the latter making the wrong decisions and losing money.
Oakville Professional Liability Insurance FAQs
The cost of a $1 million PLI policy typically ranges from $500 to $2,500 per year, depending on your industry, business size, risk exposure, and claims history.
Most professional liability insurance policies last 12 months and need to be renewed annually. However, you can often choose to pay monthly or annually.
Commercial general liability covers bodily injury, property damage, and advertising injury, but not professional errors or negligence. Professional liability insurance protects you if a client claims you made a mistake, were negligent, or failed to deliver services as promised.
We Provide Services in These Areas:
- Professional Liability Insurance in Toronto
- Professional Liability Insurance in Vaughan
- Professional Liability Insurance in Ontario
- Business Insurance in Ontario
- Errors and Omissions Insurance in Ontario
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Protect your business from costly errors. Let us help you secure professional liability insurance that truly delivers. Request your quote today.