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Comprehensive Professional Liability Insurance - Toronto

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What is Professional Liability Insurance (PLI) in Toronto?

Professional liability insurance- also known as errors and omissions insurance- protects your business if you or an employee makes an error related to the professional services you provide to customers or clients. No matter how long you’ve been in business, mistakes happen. Client claims could be about alleged negligence, malpractice, mistakes, or misrepresentation. Regardless of how true the claim is, it doesn’t have to harm your business with costly litigation when you get professional liability insurance.

At St. Andrews, we provide a suite of business insurance products to help commercial entities thrive and survive many challenges that come along the way. We have your back while you focus on growing your business.

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What Does Professional Liability Insurance Cover in Toronto?

  • Negligence Claim: A client sues your business claiming negligent acts, like professional mistakes or failures.
  • Missed Deadlines or Undelivered Services: If your service delivery team misses important deadlines leading to financial loss, the client may sue.
  • Misrepresentation: A client might sue you if they feel like you misrepresented your services or expertise.
  • Breach of Duty: Indicates that the client thought the service you provided didn’t meet the standard quality of care.
  • Copyright Infringements: Protects professionals against claims related to intellectual property misuse. It’s only available for some policies.

What Isn’t Covered by Professional Liability Insurance?

Professional liability coverage doesn’t cover all types of lawsuits. Here are some cases where you may need a different type of insurance coverage.

  • Bodily injury or property damage (covered under general liability insurance)
  • Intentional misconduct or fraud
  • Cyberattacks or data breaches (covered under cyber liability insurance)
  • Vehicle business use (covered under commercial vehicle insurance).
  • Employee discrimination lawsuits (covered under employment practices liability insurance).

We Provide More Insurance Solutions for Your Business:

We care about businesses in Toronto and understand the importance of protecting them. Besides professional liability insurance, we provide other comprehensive insurance solutions for all businesses:

  • Business Insurance
  • Errors and Omissions Insurance
  • Directors’ and Officers’ Insurance
  • Group Benefits
  • Cyber Liability Insurance
  • Cargo Insurance

Who Needs Professional Liability Insurance in Toronto?

We recommend getting professional liability insurance coverage to any business that offers advice, consultation, or specialized services. Clients could get unsatisfied with your service or advice for any reason, and whether it’s baseless or not, it shouldn’t hinder your business plans. Here are some of the industries that benefit from professional liability insurance the most.

  1. Healthcare Professionals: Professional liability insurance is known as medical malpractice insurance in the world of healthcare. It covers malpractice claims, misdiagnoses, or treatment errors.
  2. Legal and financial professionals: lawyers, accountants, and auditors all do work with high stakes. Having professional liability insurance protects them from claims of incorrect legal or financial advice leading to client losses.
  3. Advisors and consultants: Business consultants, IT consultants, cybersecurity professionals, and marketing and PR consultants all need professional liability insurance. It protects them against claims of poor strategy, ineffective recommendations, or implementation errors.

Other professionals that benefit from having professional liability insurance:

  • Real Estate & Mortgage Professionals
  • Engineers & Architects
  • Creative & Media Professionals
  • IT & Tech Companies

What is the Difference Between General Liability Insurance and Professional Liability Insurance?

General liability insurance (CGL) covers physical risks, like bodily injury and property damage. So, suppose a client is injured on your business property. In that case, they can sue for physical damage, where your insurance company can cover the medical and legal fees under commercial general liability insurance. The same goes if you or one of your employees accidentally damages a client’s property.

A professional liability insurance policy, on the other hand, covers the defence costs for more abstract risks that involve fault in the professional services you provide. While both general liability and professional liability insurance are types of liability insurance for businesses, they cover two different areas.

Is Professional Liability Insurance Required in Toronto?

Professional liability insurance is mandatory for some industries and recommended for others.

Industries Where Professional Liability Insurance is Mandatory

  1. Healthcare professionals: must carry medical malpractice insurance as regulated by provincial bodies.
  2. Lawyers and paralegals: Mandatory under the Law Society of Ontario (LSO) for all practicing lawyers and independent paralegals.
  3. Accountants: Accounts who provide public accounting services, or Chartered Professional Accountants (CPA) must carry PLI.
  4. Architects: must carry PLI to meet Professional Engineers Ontario (PEO) and Ontario Association of Architects (OAA) regulations.

Some industries aren’t legally required to carry professional liability insurance, like marketing firms and human resources professionals. Still, we recommend carrying professional liability insurance coverage for all professionals who provide advice or consultancy to ensure they’re safe under any client claims.

What is the Cost of Professional Liability Insurance in Toronto?

The cost of professional liability coverage differs depending on many factors, including the business size. For example, a small business may pay anywhere between $500 and $3000 per year. If you are a solo proprietor, you may pay between $400 and $800 annually. As for medium to large businesses, the average annual premium rate is between $2000 and $5000.

Factors that Affect the Cost of Professional Liability Insurance.

  • Industry and profession: High-risk professions usually pay higher premiums.
  • Business size and revenue: Large businesses with higher revenue face greater liability potential and may pay higher premiums.
  • Claims history: Businesses with previous claims pay higher premiums, as insurers see them as higher risk.
  • Coverage limits: More coverage equals more protection, but it costs more.
  • Insurance company: Different providers have different formulas to calculate professional liability insurance quotes in Toronto.
  • Location: Areas with higher litigation rates and operational expenses, like Toronto, face more costly premiums.

How to Find the Cheapest Professional Liability Insurance in Toronto

  1. Compare quotes to get cheap professional liability insurance in Toronto.
  2. Assess your coverage needs to make sure you get sufficient coverage without paying unnecessary costs.
  3. Consider bundling PLI with other business insurance products, like commercial general liability insurance or worker’s compensation insurance.
  4. Maintain a claims-free history, so professional liability insurance companies in Toronto can see you as a lower risk.
  5. Get advice from a professional broker in Toronto. Our team of experts would be happy to assist.
  6. Implement risk management practices to minimize errors and reduce the likelihood of claims.

Get the best professional liability insurance in Toronto with St. Andrews.

Toronto Professional Liability Insurance Claims

Here are scenarios where you benefit from having PLI coverage.

  1. Architect design error: A client sued an architecture firm because the architects overlooked important safety features, leading to the reconstruction of some sections. PLI pays for the settlement amount and legal costs.
  2. An attorney missed a critical filing deadline, and the client’s case was dismissed. The client sued the attorney for negligence. PLI reimburses the legal costs.
  3. A software firm developed a new website, but it was non-functional upon launch. The client sued the company for breach of contract. PLI covers the legal defence costs and any settlements.

Toronto Professional Liability Insurance FAQs

Most professional liability insurance policies last one year and are renewed annually.

Yes. General liability insurance is different from professional liability insurance as it covers claims of bodily injury and property damage. On the other hand, PLI protects you from claims of negligence, errors, breach of contract, and more errors related to the professional services you provide.

Follow these tips to get the best PLI policy:

  1. Read different professional liability insurance reviews to select the best service provider.
  2. Assess your needs and the amount of coverage that suits your business.
  3. Consult professional brokers and learn more about PLI coverage limits.
  4. Review your policy thoroughly and make sure all the terms are clear.

Professional liability insurance is tax-deductible in Toronto if the business is required to carry it by law. Professionals can claim PLI insurance premiums to maintain a professional status recognized by law.

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Don’t let a mistake take a toll on your business finances. We can help you get professional liability insurance coverage that comes through for you. Get a quote now.

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