Professional Liability Insurance, Alberta | E&O
Professional Liability Insurance in Alberta
Professional liability insurance, also called errors and omissions insurance, is a type of business insurance that protects professionals who provide advice and other services to their clients. Many professionals need this insurance coverage, from therapists and financial advisors to medical practitioners.
Mistakes happen all the time, but a single mistake can cost you your reputation and thousands of dollars in legal fees, settlements, and lost business opportunities. Alberta professional liability insurance is designed to offer protection if your business generates most of its revenue through a professional service, or if you offer advice in exchange for compensation. To avoid pricey lawsuits, it’s highly advised that you purchase professional liability insurance as part of your risk management plan.
Contact us today to get a free professional liability insurance quote in Alberta!
Get a QuoteIndustries We Serve
Sharp Insurance sells professional liability insurance in Alberta to the industries listed below:
- IT consultants
- Construction contractors
- Social services
- New media
- Photography
- Legal services
- Health and wellness
- Managers
- Consultants
- Finance
What Does Professional Liability Insurance Cover in Alberta?
Professional liability insurance in Alberta covers you financially against claims of errors, professional negligence, omissions, or failure to meet clients’ requirements. This policy provides coverage for:
Errors and Omissions
This coverage protects you against claims of alleged negligence, mistakes, misrepresentation, and failure to deliver a project or service as expected.
Legal Fees
If the claim results in a lawsuit, PLI will cover any legal expenses associated with the claim, including legal defence costs, court expenses, and settlements.
Breach of Contract
If a client sues you over failure to meet contractual obligations or performance expectations, E & O insurance will help cover legal costs, settlements, and damages associated with the claim.
Project Delays
Project delays and missed deadlines can cause major financial losses for clients, leading to potential lawsuits. Errors and omissions insurance protects against such claims, ensuring your business is financially secure against legal disputes.
Contact us today to get the best coverage in Alberta!
Is Professional Liability Insurance Mandatory in Alberta?
While professional liability insurance is only legally mandated for certain businesses in Alberta, it’s an essential coverage that all businesses need. Some regulated professions in Alberta must carry E & O insurance to comply with licensing or industry standards, including:
- Health Care Professionals
- Lawyers & Legal Professionals
- Accountants & Financial Advisors
- Architects & Engineers
- Architects & Engineers
Failure to carry the coverage required in these industries may result in fines, license suspension, or legal consequences. Other professionals, such as those working in law or finance, may also require professional liability insurance to conduct their work. While it may not be legally mandated in every case, it is highly recommended to protect against potential claims. Given that coverage requirements vary by profession, it’s best to consult with an experienced insurance broker to understand what’s needed to operate your business in Alberta while staying compliant and financially secure.
How to Request a Professional Liability Insurance Quote
- Assess Your Business Needs: Before requesting a quote, assess your coverage needs by determining the risks associated with your business.
- Gather Essential Business Information: To expedite the process, ensure you have all the information needed for an accurate quote, including your business name, industry, years of experience, claims history, and annual revenue.
- Request a Quote: Click Get a Quote and fill out Sharp Insurance’s form or call us to speak with an expert insurance broker.
- Customize your Policy: Once you receive a quote, our brokers will help you customize your insurance policy according to your business needs.
- Finalize your Coverage: Start your errors and omissions coverage with Sharp Insurance to protect your business from unexpected financial losses.
Understanding Professional and General Liability Insurance
Professional liability insurance and general liability insurance are two types of liability coverage essential for businesses in Alberta. While both policies protect against financial losses, each covers different types of claims.
- Professional Liability Insurance: This insurance policy, also known as errors and omissions insurance, covers claims related to professional mistakes, negligence, errors, and omissions. It pays for legal defence costs, settlements, and damages caused by misrepresentation or failure to meet the client’s standards, resulting in financial loss for a client.
- Commercial General Liability Insurance: CGL provides coverage against third-party liability claims of bodily injury, property damage, and personal and advertising injury. It helps businesses cover legal fees, medical costs, and any settlements associated with the claim.
While a company may need commercial general liability insurance to protect itself from third-party claims alleging bodily injury or property damage, CGL will not cover you if you are sued over the services or advice you provide to clients. This is where having professional liability insurance in Alberta steps in.
Whether you live in downtown Calgary as a therapist or you’re a small business owner on the outskirts of Medicine Hat, you’ll need professional liability insurance to protect you and your business from various claims.
How Much Does Professional Liability Insurance Cost in Alberta?
Errors and omissions insurance costs an average of $500 to $5,000 annually in Alberta, depending on several factors. The exact premium calculated by your insurance company will vary based on industry, risk factors, business size, coverage limits, and deductibles. For example, a small business providing professional services like consulting may pay around $500 to $1200 annually for PLI. Meanwhile, companies like legal firms and healthcare facilities are associated with higher risk, so they may pay up to $5,000 annually for errors and omissions (E&O) insurance in Alberta.
The right policy can make all the difference. Get your quote today!
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Ways to Lower Your Professional Liability Insurance Costs
- Compare Quotes: Shop around and compare quotes from multiple insurance providers to find the best rates. Partnering with Sharp Insurance can make this process easier because we have access to the best insurance companies in Alberta and we can get you competitive rates.
- Choose the Right Coverage: When it comes to insurance, the options and add-ons are endless! Assessing your actual risk levels and choosing the coverage you need can help lower your insurance premium.
- Bundle Insurance Policies: Combine multiple business insurance policies into one bundle to streamline your policy. Also, many insurers offer discounts when you purchase professional liability and commercial general liability, cyber liability, or commercial property insurance together under one policy.
- Pay Your Premiums Annually: Many insurers offer discounts if you pay your premiums upfront because it saves on administrative costs and reduces the risk of missed payments.
- Increase Your Deductibles: Choosing higher deductibles can lower your insurance premiums. However, make sure that your business has the budget to cover the deductible amount in the event of a claim.
- Seek Professional Advice
Protect Your Alberta Business from Costly Lawsuits
Lawsuits can put a strain on your disposable income and can often cost tens of thousands of dollars. Claims can be made for multiple reasons, including allegations of inadequate work leading to delays, professional negligence, misrepresentation, or failure to meet industry standards. In Alberta, Sharp Insurance’s professional liability insurance brokers will work with you to create a personalized insurance policy that covers you if an accusation, or other claim, is made. This way, you can focus on your work.
Avoid legal fees today with the right insurance. Get a Quote now!
Alberta Professional Liability Insurance Coverage
Lawsuits can put a strain on your disposable income and can often cost in the tens of thousands of dollars. Claims can be made for multiple reasons, from alleging inadequate work causing delays, negligence and more. In Alberta, Sharp Insurance’s professional liability insurance brokers will work with you to create a tailor-made insurance policy that covers you if an accusation, or other claim, is made. This way, you can focus on your work.
Here are a few examples of a potential liability claims:
Say you work as a financial advisor, and you are handling a client’s sensitive financial data. You make a mistake when forwarding an email and incidentally forward it to a third-party, who uses that data for malicious intentions. Your client sues. Mistakes happen. It’s better to have the right coverage in this instance where you would be ensured coverage.
Below are a few areas where professional liability insurance in Alberta can cover you:
Professional Liability Insurance: How Much Coverage Do I Need?
There are many instances where having E & O insurance is critical. To run a successful business, you will need to maintain the following processes: proofing, quality advice, quality control, communication, record keeping and more. There is always a risk of error. Including professional liability insurance as one of your key business liability policies is key to your business’s financial stability and peace of mind.
Purchasing professional liability insurance in Alberta comes with a few choices, including deciding how much coverage you want. The following examples are the maximum amounts that your policy may cover over a 12-month policy term, regardless of how many claims you make. Commonly, you’ll have to choose between the following levels:
- $1 million
- $2 million
- $5 million
At Sharp Insurance, our professional liability insurance brokers in Alberta are happy to help you decide between your options and gauge your coverage levels based on your risk.
When you’re ready to get started, fill out the quote form by clicking the “Get a Quote” link below.
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How Does E&O Insurance Protect Your Work in Alberta?
A single claim, whether valid or false, can result in legal costs reaching hundreds of thousands of dollars. The length and complexity of a lawsuit, as well as your client’s willingness to settle, can significantly impact the financial burden on your business. E & O insurance ensures that you are financially protected from these risks.
Some of the fees professional liability insurance covers are:
- Legal Expenses: Covers costs associated with court filings, hearings, and legal documentation required for your defence.
- Attorney Fees: Helps pay for lawyer fees, which can be costly depending on the complexity of your case.
- Expert Witness Fees: Covers expenses for technical experts who may be needed to support your defence.
- Settlement Costs: Pays for settlement fees if you either lose the case or reach an agreement with your client to drop the lawsuit.
- Administrative Costs: Includes court-related expenses and other fees necessary to manage legal proceedings.
E & O insurance provides the financial security needed to handle legal disputes without putting your business at risk. Having the right coverage ensures that you can focus on your work without the fear of overwhelming legal costs
What Factors Affect Your Professional Liability Insurance Policy in Alberta?
For any small or mid-sized business in Alberta, buying professional liability insurance is based on several variables. Your policy limits and your insurance provider are two of the biggest cost factors because different businesses face different levels of risk, which can impact your businesses’ coverage limits.
Some of the factors that can impact your coverage are:
- Number of Employees
- The Size of Your Business
- Your Business Claim History
- The Province You Operate in
- Your Industry
Companies with more employees or those operating in high-risk sectors often require higher coverage limits, leading to higher premiums. However, working with a trusted insurance broker like Sharp Insurance can help you find the most cost-effective policy that aligns with your business needs.
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What Professional Liability Insurance Doesn’t Cover
Professional liability insurance provides essential protection against claims of errors, omissions, and professional negligence, but it does not cover every possible risk. Understanding policy exclusions is crucial to avoiding unexpected gaps in coverage. Some of the common exclusions are:
- Intentional Wrongdoing & Fraud: If you deliberately do something illegal, dishonest, or fraudulent, your insurance won’t cover any claims against you.
- Criminal Activity: If your business is involved in theft, fraud, or other crimes, your policy won’t provide protection.
- Physical Injuries & Property Damage: If a client slips and falls in your office or you accidentally damage their property, professional liability insurance won’t cover these costs. You’d need general liability insurance for that.
- Workplace Accidents & Equipment Damage: If your business has equipment breakdowns or workplace accidents, these are not covered. You may need commercial property or general liability insurance instead.
- Contract Disputes: If you fail to meet a contract’s terms but it’s not due to negligence, your policy may not cover the claim. Some contracts require extra coverage or bonding.
- Cyber Attacks & Data Breaches: If your business gets hacked or loses sensitive data, professional liability insurance won’t cover the costs. You’ll need cyber liability insurance.
- False Advertising & Copyright Issues: If your business is accused of misleading ads, defamation, or copyright infringement, your policy may not cover these claims unless you add extra protection.
- Government Fines & Penalties: If your business is fined for breaking a law or industry rule, professional liability insurance won’t pay for it.
Why Choose Sharp Insurance for Professional Liability Insurance in Alberta?
At Sharp Insurance, we understand the insurance needs of Alberta professionals and we aim to help you work worry-free so that you can focus on growing your career. As a fast-growing, independent brokerage, we help Alberta professionals get what they need at an affordable price. Here’s why professionals in Alberta trust Sharp Insurance:
- Expert Brokers: We don’t just sell you insurance, we provide insurance solutions customized for your business. We take time to understand the coverage required for your business to ensure you have the right protection in place.
- Affordable Protection: Insurance is a necessity, not a luxury, so it should be accessible to anyone. We work with multiple insurance providers to get you the insurance coverage you need at competitive rates.
- Exceptional Customer Support: We value connection and offer exceptional customer service above all else. Our brokers never settle for less than excellence, providing personalized support whenever you need it.
If you have any questions about your business insurance needs in Alberta, give our brokers a call today. Fill out the quote form by clicking the link below to start your coverage.
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Alberta Professional Liability Insurance FAQs
Professional liability insurance is mandatory in some industries, such as for medical practitioners. Other professionals who work in law or finance may also need professional liability insurance to conduct their work but it’s not mandatory but highly recommended. It’s suggested to ask one of experienced brokers about your work situation and what you need to run your business in Alberta.
There are a few different costs that may result from a client’s claim, which professional liability insurance may cover. Lawsuits, even those that are false (i.e., over a false accusation) can run into the hundreds of thousands of dollars, depending on the length of the dispute and its complexity. Your client’s willingness to settle can also affect the financial costs.
A professional liability insurance policy in Alberta may cover:
- Legal costs, including charges for hearings and filings.
- A lawyer’s hourly wage, which may be expensive.
- Witnesses may charge fees to give more technical explanations to support your defense.
- Settlement fees, if you lose your trial or if your client agrees not to sue in exchange.
- Administrative costs.
If you sell a professional service or give advice in Alberta, you may require a professional liability insurance policy. This type of insurance is not mandatory but it’s highly recommended. Think of it like a seatbelt for your business. You won’t always need it, but it’ll come in handy when you do.
Below are some of the industries that may require professional liability insurance.
- Legal professionals
- Engineers
- Health professionals
- Counsellors
- Construction contractors
- Social services
- IT consultants
- Photographers
- New media professionals
- Forensic experts
- Financial advisors
- Consultants
- Managers
If you want an affordable professional liability insurance policy, the best professional liability insurance in Alberta is the most comprehensive coverage you can get at an affordable rate. Sharp’s professional liability insurance brokers in Ontario help you reduce your rates without cutting necessary coverage.
Follow these tips to get lower E & O insurance rates:
- Identify and address potential risks.
- Purchase only the necessary coverage.
- Work with a professional liability insurance broker to find the best rate.
- Bundle multiple insurance policies.
Commercial general liability insurance is needed by all businesses that interact with clients, whereas professional liability insurance may only be required by businesses that give professional advice or offer professional services to clients.
CGL covers your business for claims made by third parties alleging bodily injury or property damage because of your business operations. Professional liability insurance offers coverage for claims made against your business by dissatisfied clients alleging negligence or defective products.
Insurance providers calculate E&O premiums based on industry risk, business size, claims history, coverage limits, and deductibles. Higher-risk professions pay more, but comparing quotes and maintaining a clean record can lower costs.
The cost of Errors and Omissions (E & O) insurance in Alberta varies based on factors like industry risk, business size, coverage limits, and claims history. On average, E & O insurance can range from $500 to $5,000 per year, but businesses in high-risk industries may pay more.
Sharp Insurance brokers have both an understanding of the insurance industry and access to competitive markets. Our brokers charge a fee, but this fee will almost always be offset by the savings you’ll receive by working with them. Sharp Insurance brokers will also help you with the claim process by negotiating on your behalf if you ever need to submit a claim.
Areas We Serve
Alberta| Calgary | Edmonton | Fort McMurray| Grande Prairie| High Prairie
Lethbridge| Medicine Hat | Red Deer| Whitecourt
Ontario| Kanata| Ottawa| Toronto | Regina | Winnipeg
Manitoba | Saskatchewan| British Columbia | Vancouver