Professional Liability Insurance, Ontario
What is Professional Liability Insurance in Ontario?
Ontario professional liability insurance (PLI) is a type of business insurance that protects your business from claims of professional mistakes, alleged negligence, and oversight. This insurance, also known as errors and omissions insurance, is essential for businesses offering professional services or advice such as accountants, lawyers, and consultants. Professional liability coverage protects businesses by covering legal costs, settlements, and other expenses associated with professional liability claims.
Get access to a network of trusted professional liability insurance providers in Ontario today!
Get a QuoteWhat is the purpose of PI insurance in Ontario?
Ontario’s professional indemnity (PI) insurance protects businesses and professionals from third-party claims of professional omissions and errors. For example, if a client sues your company for causing financial loss due to a delay in delivery of a service, PI would cover the costs and damages associated with the claim.
In addition to the coverage this insurance provides, it enhances your business reputation and builds trust with clients by showing professionalism and accountability.
What does Professional Liability Insurance Cover in Ontario?
Professional liability insurance in Ontario covers third-party professional liability claims and lawsuits of alleged negligence, professional mistakes, or failure to provide a service as promised.
This insurance coverage usually covers defense costs, settlements, and damages for:
-
Professional Services: To protect businesses that offer professional advice or services such as accountants, financial consultants, legal firms, and architects.
-
Media and Advertising: To cover claims of errors, omissions, and unintentional defamation in advertising campaigns or media materials.
-
Medical Professionals: Malpractice insurance covers unintentional mistakes made by medical professionals, such as misdiagnoses and surgical errors.
-
Errors and Omissions Insurance: Is considered to be one of the least expensive business insurance plans, but professional liability claims can still cause major financial loss. Even if these claims are proven to be untrue, you could still spend thousands of dollars on defense costs.
It’s highly recommended to check with your professional liability insurance company in Ontario to understand the specific details of your policy and ensure it meets your business needs.
What Isn’t Covered by Professional Liability Insurance in Ontario?
Professional liability insurance doesn’t cover bodily injury, third-party property damage, and claims resulting from intentional misconduct and wrongful business practices. Common examples of incidents that aren’t covered by professional liability insurance are:
- If a client slips and falls on your business property, professional liability insurance won’t cover it. You would need commercial general liability insurance to handle this.
- Your business operations caused damage to someone else’s property, you’ll need commercial general liability coverage to cover the damage.
- A storm damages your house roof; this wouldn’t be covered by business insurance and you’d need a personal insurance policy for home insurance to assist with this.
- If your company equipment is damaged, commercial property insurance would address this and not PLI.
St. Andrews ensures you get the best professional liability insurance in Ontario. Discover your options now!
Get a QuoteWho Needs Professional Liability Insurance Coverage in Ontario?
-
Financial Professionals: Accountants, brokers, and financial advisors whose mistakes can cause major financial losses.
-
Medical Professionals: Health providers need coverage for claims of surgical errors, unintentional negligence, and misdiagnosis.
-
Architects: Professionals who design buildings need professional liability to protect against claims of errors that could result in structural issues.
-
Consultants: Professionals offering advice or solutions need professional liability coverage as their advice can risk causing financial loss to clients.
-
Law Firms: Legal advisors and law firms need PLI to cover against claims related to their profession such as providing incorrect legal advice that leads to client financial loss.
Generally, professionals and businesses that provide advice to clients or services to customers need professional liability insurance coverage. These insurance policies cover claims against your business for professional mistakes, unintentional errors, misinterpretation, and oversight.
What is the Difference between General Liability and Professional Liability Insurance in Ontario?
- General liability: Covers third-party liability claims of bodily injury and property damage to others.
- Professional liability: Covers claims of professional negligence, errors, and omissions in services provided by your business.
Businesses in Ontario need to carry both commercial general liability insurance and professional liability insurance to protect their operations from the financial strain caused by claims and lawsuits.
Is Professional Liability Insurance Required in Ontario?
Professional liability insurance is mandatory for certain professions in Ontario such as lawyers, accountants, architects, and paralegals. These professionals are required to carry professional liability insurance to be able to complete their work with their professional associations:
-
Accountants: Firms or individuals that provide accounting services to the public must have a professional liability insurance policy. The minimum coverage amount will be based on the number of employees in the firm.
-
Lawyers: In order to privately practice Law in Ontario, lawyers are required by the Law Society of Ontario to carry professional liability insurance.
-
Architects: Architects are required by the Ontario Association of Architects (OAA) to obtain professional liability insurance to be able to maintain their Certificate of Practice.
-
Paralegals: Paralegals in Ontario should have professional liability insurance coverage as mandated by the Law Society of Ontario.
Even if your business isn’t mandated to carry PLI, it’s essential for protecting against legal claims and lawsuits that can cost your business a fortune and jeopardize your reputation.
Discover why businesses trust St. Andrews and get professional liability insurance quotes in Ontario today!
Get a Quote
How Much Does Professional Liability Insurance Cost in Ontario?
Professional liability insurance in Ontario costs from $500 to $5,000 annually, depending on several factors related to your business. Some of the factors your insurance provider considers when determining your premiums are industry type, business size, revenue, claims history and risks associated with your business.
How Certain Factors Affect Your Professional Liability Insurance Premiums
How to Choose a Professional Liability Insurance Policy in Ontario?
To select the right insurance coverage for your business, you should understand your business’s needs and the professional liability insurance requirements specific to your industry. Follow these tips to select the right professional liability insurance plan for your business:
- Research your industry requirements and assess your business needs.
- Compare quotes online to find coverage that meets your needs and fits your budget.
- Understand coverage types, limits, deductibles, and exclusions.
- Consult with an insurance broker to help you choose the best coverage for your business.
- Choose a policy that can be customized to suit your growing business needs.
- Review your policy regularly to ensure you’re properly insured.
Contact our expert brokers to secure your Ontario professional liability insurance quote now!
Contact UsProfessional Liability Insurance Claims Examples
-
Accounting Error: An accountant makes an error while filing the company’s taxes, leading to legal consequences and financial losses. Professional liability insurance covers these costs, protecting the company from major financial setbacks.
-
Misdiagnosis: A healthcare professional misdiagnoses a patient, leading to the wrong treatment protocol and complications. The patient sues for negligence, and the policy helps cover the settlement and defence costs.
-
Legal Negligence: A lawyer misses a court session because he thought it was scheduled for the following week, resulting in a default judgment against their client. If the client sues for damages, PLI covers legal costs and settlements.
-
Consultant Oversight: A business consultant provides professional advice that results in financial loss for their client. The client sues for negligent acts and the professional liability insurance policy covers the damages.
Comprehensive Business Insurance Solutions in Ontario
At St. Andrews, we provide comprehensive coverage plans designed to protect business owners from potential risks. We offer a range of customized insurance solutions to meet your business needs:
- Ontario Business Insurance
- Ontario Errors and Omissions Insurance
- Directors and Officers Insurance
- Group Benefits Insurance
- Cargo Insurance
- Cyber Liability Insurance
Professional Liability Insurance in Ontario - FAQs
A $1 million professional liability insurance policy in Ontario typically costs between $500 and $3,000 for small to medium-sized businesses annually. Larger businesses can pay up to $5,000 because they operate on larger scales which increases their risk exposure. To know the accurate numbers, it’s better to consult with an insurance professional.
Professional liability insurance policies in Ontario operate on a “claims-made” basis and usually last for one year. Some policies offer an extended reporting period, meaning that it covers claims filed after the policy expires, provided that the incident occurred while the policy was active. It’s essential to renew your policy on time to avoid coverage gaps that could leave you vulnerable to claims made during an uncovered period.
Because professional liability insurance and commercial general liability insurance are two different policies, each one of them serves a different purpose. Professional liability insurance protects against claims of alleged negligent acts, errors, omissions, and oversight. On the other hand, commercial general liability insurance protects against third-party liability claims of bodily injury and property damage.
Yes, professional liability insurance covers errors and omissions unintentionally made by professionals. This includes mistakes, oversights, or negligence in providing services or advice that result in financial loss for a client.
We Also Serve These Cities in Ontario
- Professional Liability Insurance – Toronto
- Professional Liability Insurance – Oakville
- Professional Liability Insurance – Vaughan
Get a Quote Now
Life happens, and St. Andrews is here to protect your business every step of the way. Contact us today to learn how we can help.