Professional Liability Insurance, British Columbia | E&O
Best Professional Liability Insurance in British Columbia
Professional liability insurance (PLI), also known as errors and omissions insurance, is a type of business insurance. It protects companies and businesses from lawsuits related to the professional services they provide.
For instance, these businesses might face cases where the receiving clients aren’t satisfied with the service they paid for. In that case, they can file a lawsuit, which can be expensive for the company to defend itself. If the defence fails, the business must pay a hefty settlement. With professional liability insurance, the business could file a claim and get the help of the insurance company in paying for legal costs.
Sharp Insurance is a brokerage that offers business insurance for small and mid-sized businesses, making sure they don’t have to suffer financially because of a mistake or mishap. Our business insurance products include commercial general liability, professional liability, commercial auto, commercial property insurance, and more!
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Why Sharp Insurance Is the Best Option for Your Business
- Independent Award-Winning Brokerage: Sharp Insurance is a multiple-award winner, which is a testimony to our dedication to offering the best insurance service in Canada.
- Broad Range of Products: We provide a wide range of products that include property insurance, auto insurance, recreation insurance, and business insurance. We have something for everyone, and skilled at providing coverage that helps protect everything that matters to you.
- Unbeatable Service: We excel at giving each customer we encounter exceptional customer service. Our employees are highly motivated to offer the best service at every step of your insurance journey.
- Low Prices: We work for our clients, not the insurance company. That means we go above and beyond to get you the best deals while offering comprehensive coverage.
- Tech-Savvy: We’re not a typical old-school insurance brokerage. We’re up to date with the latest technologies that make life easier for you. Just download the MySharp online portal and try it out yourself.
Industries We Serve PLI
Sharp Insurance sells professional liability insurance in BC to the industries listed below:
- IT Consultants
- Construction Contractors
- Social Services
- New Media
- Photography
- Legal Services
- Health and Wellness
- Managers
- Consultants
- Finance
Protect your business with professional liability coverage from the best insurance company in BC. Get a Quote today!
What Does Professional Liability Insurance Cover in British Columbia?
- Professional Negligence: Claims of professional negligence arise when a business allegedly fails to meet the standard of care when offering professional advice or service. For example, an accountant makes an error in financial reporting, leading to client penalties.
- Errors and Omissions: PLI protects against mistakes and oversights in professional services. Example: An architect makes a flawed design, causing additional construction costs.
- Breach of Contracts: Or breach of duty means that the business failed to fulfill its contractual obligations or deliver promised services. This could include missing deadlines or major project delays that cost the client financial loss.
- Misrepresentation or Misstatement: This means the professional allegedly provided false information, whether intentionally or not. For example, a client might sue if a financial advisor recommended investments based on inaccurate data.
- Professional Misconduct: Includes claims related to violations of professional standards, like breaches of confidentiality or providing services while impaired.
- Legal Fees: Generally, PLI coverage protects you financially in all these cases by taking care of legal expenses, including attorney fees and court costs, even if the claim is unfounded.
Note that some policies offer retroactive coverage, which means they cover the business from work done before the policy’s effective date. This only applies if the business wasn’t aware of any claims made before applying for professional liability insurance.
What Errors and Omissions Insurance Policy Doesn’t Cover
Professional liability insurance, or errors and omissions insurance, is an important coverage for all businesses, but it doesn’t cover all instances of client dissatisfaction. Here are instances that would require carrying other types of commercial insurance to ensure the continuity of business operations.
- Bodily injury and property damage are covered by Commercial General Liability Insurance (CGL)
- Intentional wrongdoing and fraud are never covered by insurance.
- Employee disputes, like claims of wrongful termination or illegal activities, are covered by employees’ practices liability insurance.
- Complaints about the quality of products offered are covered by product liability insurance.
- Decision-making mistakes made by members of the board of directors are covered by directors’ and officers’ insurance.
Is Professional Liability Insurance Legally Required in BC?
Professional liability insurance isn’t legally required by provincial laws. However, some regulated professions are required to carry coverage. These include:
Lawyers
All BC lawyers must have professional liability coverage through the Law Society of BC’s Lawyers Indemnity Fund. This coverage is $1 million per error and $2 million annual aggregate. Exemptions are available for lawyers not in private practice or who meet certain criteria.
Architects
Architects with a Certificate of Practice from the Architectural Institute of BC (AIBC) must have professional liability insurance. The minimum coverage is $250,000 per claim and $500,000 annual aggregate.
Engineers and Geoscientists
Engineers and Geoscientists BC registrants must have secondary professional liability insurance. This policy is $250,000 in coverage, including defence costs to protect against claims made during the policy period.
Pharmacists and Pharmacy Technicians
The College of Pharmacists of BC requires registrants in classes, such as Full Pharmacist, Temporary Pharmacist and Pharmacy Technician, to have professional liability insurance regardless of their current practice status. This ensures continuous coverage even during periods of leave.
Chartered Professional Accountants (CPAS)
CPAS offering public practice services must have professional liability insurance as part of their licensing requirements with the Chartered Professional Accountants of BC (CPABC). The insurance policy must meet specific criteria, including minimum coverage amounts and notification provisions.
Other professions
While not all professions are required to carry professional liability insurance coverage, it’s recommended for businesses that offer professional services, consultancy, or advice. It’s the best way to mitigate the unique risks that come with providing services on a contractual basis.
The errors and omissions policy also protects against errors that may be expensive for the business to fix and damaging to its reputation. Instead of paying a large sum to the attorney and another large sum in settlement, the insurance company pays for most of it, depending on the deductible and the coverage limits.
How Much Does Professional Liability Insurance Cost in BC?
The professional liability insurance BC cost differs from one policyholder to another, based on many factors, like where your business operates, the claims history, industry risk profile, revenue, years of experience and more.
Average Annual Premiums in BC
- Sole Proprietors & Freelancers: Typically range from $400 to $800 per year.
- Small Businesses: Generally between $500 and $1,500 annually.
- Medium to Large Businesses: Can expect premiums from $2,000 to $5,000 per year.
- Profession-Specific Examples:
- Finance & Accounting: Approximately $600 to $1,200 annually.
- Consulting: Around $700 to $1,500 annually.
- Real Estate: Typically $800 to $1,600 annually.
- IT/Technology: Ranges from $900 to $2,000 annually.
- Healthcare Professionals: Between $1,500 and $3,000 annually.
Some providers offer policies starting as low as $700 per year, depending on the services your company offers.
Get a PLI Quote in BC
Our experienced insurance brokers can help you get comprehensive coverage from the best providers in the industry. The process is quick and easy. Get an online quote now.
Do I Need Professional Liability Insurance If I Have General Liability Insurance?
Commercial general liability insurance is another important type of business liability insurance. However, it’s not an all-inclusive type of business insurance. It protects against bodily injury and property damage. It also protects against advertising injury, defamation, slander, and libel.
In other words, it’s more about physical damage to the clients or third parties, whereas professional liability insurance protects against more abstract types of complaints.
All in all, having both types of business insurance is important to keep your business on its feet, shielded from all unexpected events.
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How to Get Cheaper Professional Liability Insurance in British Columbia
Getting errors and omissions insurance in British Columbia doesn’t have to be too expensive. Here are some tips that can help you save on your annual or monthly premium.
- Implement risk management strategies to lessen the chance of errors and mistakes that lead to claims.
- Enforce clear communications with clients and document every interaction to leave less room for errors.
- Shop around and compare quotes before choosing an insurance policy. Our brokers can help you make the best choice.
- Bundle all your business insurance policies. Buy them all as a bundle from the same insurer to get a discount.
- Increase your deductible, but make sure it’s still manageable in case a claim arises at any point.
- Keep a clean claims history. Avoid making claims if you can afford to pay the legal costs out of pocket. Having previous claims dramatically increases your premiums.
Get a British Columbia professional liability insurance Quote
One mistake shouldn’t stand in the way of your business goals. Let us help you get back on your feet with good professional liability insurance. We pair you with the best insurance providers in British Columbia, making sure you can get the insurance you need at an affordable price. Get a quote now!
Smart Ways to Save on Your Professional Liability Insurance in British Columbia
- Compare Quotes from Multiple Insurers: Work with a reliable insurance broker like Sharp Insurance to get affordable quotes from multiple top insurance companies in BC.
- Bundle Your Policies: Many insurance providers offer a discount when you combine multiple insurance policies into one bundle.
- Maintain a Clean Claim History: Avoid claims and lawsuits as much as you can by implementing clear contracts, documenting all client communications, and consistently following industry best practices.
- Increase Your Deductibles: Selecting a slightly higher deductible can lower your insurance premiums. However, you must make sure that your business has the resources to pay the deductible amount out of pocket in the event of a claim.
- Pay Your Insurance Premiums Annually: Many insurance providers offer discounted rates when you pay your insurance premiums annually instead of monthly.
Professional Liability Insurance British Columbia FAQS
Professional liability insurance covers claims related to negligence, mistakes, omissions, or failure to deliver professional services as promised. It typically covers legal fees, settlements, and court costs.
The average cost ranges from $500 to $2,500 per year, depending on the industry, coverage limits, claims history, and business size.
A $1 million professional liability policy in BC typically costs around $500 to $1,500 annually, but it can vary based on the profession and risk exposure.
If you provide professional services or advice (e.g., consulting, real estate, healthcare, tech services), you likely need E&O insurance to protect against potential lawsuits and financial losses from errors or omissions.
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