Get your best professional liability insurance quote for free

See your professional liability insurance rate online instantly

Compare commercial insurance quotes.

43,588 Canadians

have compared rates and saved money over the last 24 hours

What our users say:

July 22
The customer service person was very…
The customer service person was very helpful and I was really impressed with the...
Cesar Gamez Guadiana
July 21
The person I spoke with answered my…
The person I spoke with answered my question clearly and patiently.
Vashti Mascoll
July 21
Fast Response,friendly service and a…
Fast Response,friendly service and a wide variety of options
Tom Mayville
July 21
Friendly and helpful service.
Friendly and helpful service.
Martha Kruger
July 20
It was great to get so many different…
It was great to get so many different comparative quotes which benchmarked my ex...
Cyrus Irani
July 19
Tyler was very pleasant to work with…
Tyler was very pleasant to work with and answered all questions throughly so we ...
FC
July 19
I'm going to save $500 this year!
I'm going to save $500 this year!
Peter M,YTO
July 18
Ended up with a terrific broker and…
Ended up with a terrific broker and more than fair prices. This is the way to do...
Earl Boyd
July 18
sincerety
Very good communication and kindness!
Danica Tomic
July 18
I was very satisfied with the customer service very professional and friendly.
I was very satisfied with the customer service extremely helpful and efficient t...
Carlos Segovia
July 18
I didn’t know about this website
I didn’t know about this website, my younger brother told me about it once but...
Muhammad Usman Tariq
July 17
Very polite and patient service
Very polite and patient service. Very professional
Raj Mathavan
July 17
Went smoothly
Went smoothly Straightforward No hassle
Frank Kane
July 17
Fostering a positve experience
Polite , solution oriented, clear and concise in communication
Hilary Miserowsky
July 17
Very low rate
Very low rate
quoc nhi Chau

How getting quotes works. Hint: it's free!

Pair

Next, we'll set you up with a quote from a top Canadian business insurer. It's free with no commitment.

Save

After you see your quote, secure your rate by talking to a licensed broker or agent.

What is commercial professional liability insurance?

Commercial professional liability insurance – sometimes known as errors and omissions insurance – is coverage meant to cover your business’ professional mishaps (alleged or otherwise).

Business owners that provide a service, such as doctors, lawyers, accountants or consultants with expertise in a specific area – all require this insurance. Why? Because your standard general liability insurance does not cover claims against things like negligence, malpractice or mistakes. Professional liability insurance does.

Who needs professional liability insurance?

People offering a particular service or specialized expertise should have professional liability insurance. The same is true for professionals who create and sell products for customers.

Some types of professionals who would benefit from liability insurance include:

What’s covered and not covered by professional liability insurance

Insurance is not a guaranteed protection for all claims. Honest mistakes or errors can be covered, but behaviour with intent to harm or harass is excluded.

Coverage typeIncluded? (YES/NO)
Negligence: This covers professional negligence. For instance, if a medical practitioner accidentally prescribes their client the wrong medicine, they may get sued for professional negligence.YES
Financial loss: If your client suffers financial losses due to your advice or services, they may sue you. This will cover your legal expenses and monetary judgement (if applicable).YES
Media and advertising: If your advertisement or other services resulted in your client being sued for defamation or libel, liability insurance may cover your legal costs.YES
Violation of Securities Act: Insurance does not cover securities fraud. NO
Cost guarantees or price estimates: If you’ve promised specific ROI numbers or similar specifics, insurance will not cover you.NO
Criminal acts or fraud: If you commit crime or fraud, insurance will protect you.NO
Harassment or inappropriate behaviour: If you harass your clients or commit other inappropriate acts that lead to legal consequences, you will not be covered.NO

As you can see, if you wilfully damage another person or violate regulatory rules, your insurance will not protect you. However, even the most diligent service provider will make mistakes, and liability insurance will cover you against an array of third-party claims.

 

How much does professional liability insurance cost?

The cost of professional liability insurance depends on you and the type of business and industry you are in. Your annual income or revenue, as well as years of experience, will also play a factor in cost.

Prices for professional liability insurance can range from about $250 to $500 per year for about $100,000 worth of coverage. It could go higher depending on your profession. Talk to your provider about how much is appropriate for your specific needs.

Types of insurance claims common to professional liability insurance

It’s impossible to list all the most common types of claims for professional liability insurance, but here are some examples:

Professional negligence
This can arise when a professional, such as a lawyer or accountant, makes a mistake that causes financial distress to their client.

In this case, damages could include costs incurred by the client, but insurance may cover legal fees and monetary damages.

Let’s say you’re an accountant. You make a mistake in your calculations, which later leads to your client paying more debt than they expected. They sue you for negligence, and your total expenses – including monetary judgement and legal fees – amount to $230,000.

Financial loss
A client sues you for financial loss after your product or service did not deliver on a promise of increased revenue. Your professional liability insurance policy would cover legal expenses and settlement fees.

Let’s assume you’re in the software development business. You provide the software you were contracted to build, but it turns out it can’t deliver on the client’s expected results, leading to financial losses for their business. As a result, they sue you, which costs you $43,000 – including legal fees and monetary judgement.

How to get the cheapest professional liability insurance quote

Here are some easy ways to reduce your professional liability insurance premiums:

Shop around

Getting multiple quotes for liability insurance will help you zero in on the insurance company that can offer the best value.

Bundle up

Get a discount by combining your professional liability insurance with other insurance products.

Identify risks

Understand the specific risks associated with your profession and business operations.

Prioritize staff training

Training staff and procedural guidelines can help minimize errors and risk.

Clearly define scope of work

Ironclad contracts and scope of work mandates can help manage expectations and reduce errors.

Communicate effectively

Regular check-ins with your clients will help ensure that both you and they are on the same page.

Document everything

Keep a paper trail of meetings, goals, expectations and completed milestones.

Use contracts and agreements

Put everything in writing, so that all tasks and agreements are officially documented.

Ensure compliance

Keep up with changes in regulations and industry standards to ensure compliance.

Seek legal advice

Ensure your processes and documentation follow professional legal standards.

Review coverage regularly

As your business grows or changes, review your coverage to avoid paying a chunk on assets you no longer own.

Your questions about professional liability insurance, answered.

Is professional liability insurance mandatory in Canada?

Professional liability insurance is not mandatory in Canada. But not having it can cost you thousands of dollars if claims are made against you. It’s also possible that many clients and business partners will require you to have professional liability insurance before doing business with you.

Which professions are highly recommended to have professional liability insurance?

Professional liability insurance should be taken by any business that provides professional services with a specialized skill or expertise.

This can include, but is not limited to:

  • Consultants
  • Doctors
  • Lawyers
  • Engineers
  • Freelance consultants
  • IT professionals
  • Real estate agents or brokers
  • Insurance professionals

Is professional liability insurance the same as errors and omissions insurance?

The simple answer is yes. Often the two terms are used interchangeably. Both protect professionals from claims due to clients claiming financial loss, negligence or mistakes from a service you provided.

There is also something called “medical malpractice” insurance, which is a specialized form of professional liability coverage, meant for medical professionals.

“Professional liability” is an umbrella term that applies to professions and businesses across multiple fields – from lawyers to general contractors. If you’re in the healthcare field, medical malpractice insurance is your version of professional liability.

Joel Kranc

Joel Kranc

About the Author

Joel Kranc is an award-winning writer, author and journalist. Most of his experience lies within the institutional investment and financial services space. He also covers a variety of business topics for publications in North America and the UK.

Read More