Professional Liability

A simple misunderstanding. A miscalculation. An overdue project. An oversight.
No matter how many years of experience you may have, mistakes happen.
Professional Liability Insurance helps protect you from these allegations and legal action.

At Collis Insurance, our brokers are well experienced in your special insurance needs as a professional. In fact, approximately 50% of our clients operations are professional services in nature. Protect your professional career, reputation, and business with professional liability insurance.

What is Professional Liability?

Professional Liability Insurance is also referred to as Errors and Omissions (E&O) Liability.  Professional Liability Insurance protects you and your business from the financial costs and damages associated with a lawsuit.  Even minor mistakes could trigger a chain reaction, ultimately causing a client to lose income and come back to you for the damages.

There are a wide range of names for this coverage, dependent on occupation.  In Medical related fields, this coverage can also be referred to as Malpractice Liability Insurance. For marketing / media organizations, it may be called Media Liability. Printers – Printers E&O. For Publishers, Publishers E&O, etc. 

Regardless of the name – if a client feels you made an error or omission in some piece your work, they could demand financial compensation for having failed in your responsibilities to them.

Without Professional Liability Insurance, your business could carry the burden of extensive legal fees related to defending these allegations.  Those legal fees alone could potentially bankrupt the business – even if found not legally liable (at fault) at the end.

Please Note: Commercial General Liability does not offer protection against claims due to a professional’s mistake or malpractice. Commercial General Liability coverage specifically excludes most Errors & Omissions Liability claims. With very few small exceptions… 

 

Who needs Professional Liability Insurance?

Almost all types of Professionals that provide advice or recommendations, write reports, provide drawings or plans, offer a service for a fee, etc –  need Errors & Omissions Insurance. No matter what kind of professional you are, you and your business face unique risks. At Collis Insurance we guide you towards the right coverage specific to your profession, industry, and insurance needs.

Here is just a sample of the types of occupations that require Professional Liability:

  • Accountants
  • Alternate Dispute Resolution Services
  • Architects
  • Auctioneers
  • Bookkeepers
  • Business Coaches
  • Claims Adjusters
  • Computer Consultants
  • Court Reporters
  • Draftsperson
  • Engineers
  • Expert Witnesses
  • Forensic Accountants
  • Graphic Designers
  • Home Inspectors
  • Human Resource Consultants
  • Information Technology Companies
  • Insurance Brokers
  • Management Consultants
  • Meeting Planners
  • Personal Counsellors / Social Workers
  • Placement Agencies
  • Property Appraisers
  • Property Managers
  • Publishers
  • Relocation Consultants
  • Tax Preparers
  • Translators
  • Travel Agents
  • Website Developers

If you don’t see your occupation or industry mentioned above, don’t worry! “Collis”, email, or send a pigeon, (we aren’t picky), one of our brokers will help you right away.

What does Professional Liability cover? 

If you or your employees provide any kind of professional service or advice (written, spoken, or drawn), you are vulnerable of being blamed for any financial loss your client claims to have. E & O Insurance may cover legal costs, settlement costs, and awards up to your coverage limit.

In a nutshell, professional liability covers mistakes or errors related to:

E

Misrepresentation

An untrue statement that motivates someone else to do something that if they had correct information may have led to a different decision.

E

Error / Inaccuracy

A mistake in your work, recommending a course of action, plan, contractor, going from memory without double checking. 

E

Negligence

Not taking the same amount of care that others in your specialized knowledge and profession would – or that was expected.

E

Omission

Important information that was left out or excluded. Failure to perform an act or service agreed to.

What does Professional Liability NOT cover?

 

Professional Services are covered when those services are usual and within the scope of your professional qualifications. (eg. If you are qualified as an Engineer but are giving advice the typically received from an Accountant – this is outside the scope of your qualifications.)

Usually, Errors & Omissions Insurance does not cover: 

  • Criminal acts, fraudulent misconduct, malicious, or bad faith acts or omissions.
  • Claims, where the services provided were before the first continuous coverage is placed.
  • Guarantees, warranties, estimates of return on investment/capital, economic return, etc.
  • Terrorism, Acts of War, Pollution, Nuclear reactions or related claims.
  • Claims for allegations usually covered under another type of insurance policy. ( Eg. Bodily Injury/Property Damage, Automobile, Aircraft, Watercraft Liability – covered under those specific types of policies.)

How much is Professional Liability Insurance? 

Professional Liability costs are dependent on multiple factors unique to your business.

If you’re curious, the cost of your policy and level of coverage depends on some of the following aspects:

  • Your Industry and Your business’s specific operations
  • Your qualifications and number of years experience
  • The size of your business (Number of Employees)
  • Work Subcontracted out to other insured companies
  • Annual and Projected Revenue

Example Scenarios

Architects

Engineers

Consultants

Marketers

Accountants

Blueprint that has an error. Architect needs Professional Liability Insurance
A project planner to represent a project delay.
A frustrated consultant that gave a client bad advice. She needs professional liability
A frustrated marketer that didn't finish a website. She needs professional liability
A calculator to represent an accountant that entered the wrong numbers

An error in the types of materials recommended. 

Failure to recommend a specific type of testing.

Recommending another consultant that didn’t do a good job.

A marketing plan doesn’t go expected.

Providing wrong information on behalf of the client to Revenue Canada.

Ready to get a FREE, No-Obligation Professional Liability Quote?