What’s Not Included in Your Professional Liability Insurance in Edmonton?

Although professional liability insurance provides necessary protection to your business, there are some situations where it won’t protect you.

Below are the cases that professional liability insurance won’t cover:

• General Liability Claims: Third-party liability claims of bodily injury and property damage aren’t covered under professional liability insurance in Edmonton. You’ll need commercial general liability insurance to protect against these claims.
• Cyber Attacks: Errors and omissions insurance doesn’t cover cybercrime, ransomware attacks, or data breaches that compromise sensitive data; they are covered under cyber liability insurance.
• Intentional Harm: Your professional liability insurance policy, like any other insurance policy, doesn’t cover intentional misconduct or criminal acts, including fraud, unethical behaviour, and illegal activities.
• Fines and Penalties: If your business fails to comply with laws or regulations and gets sued over it, errors and omissions insurance won’t cover any fines or expenses associated with these claims.

Is Professional Liability Insurance Mandatory in Edmonton?

Professional liability insurance is legally mandated for several professions in Edmonton, including:

• Architects: Professional liability insurance is mandated for all practicing architects according to the Alberta Association of Architects (AAA).
• Accounting Firms: Accounting firms in Edmonton must carry professional liability insurance. The minimum coverage required is based on the number of accountants in the firm.
• Healthcare Providers: Doctors, nurses, and other healthcare professionals must carry a form of professional liability insurance known as malpractice insurance.
• Patent & Trademark Agents: The College of Patent Agents and Trademark Agents requires its licensees to carry professional liability insurance if they provide services to the public.
• Legal Firms: Lawyers and legal firms are required to carry professional liability insurance in Edmonton according to the Law Society of Alberta (LSA).

Although errors and omissions insurance isn’t mandatory for all professions in Edmonton, it’s one of the most significant coverages for professionals who provide advice or services. Without this coverage, a single claim of negligence can cost your business thousands in legal fees, settlements, and reputational damage. E&O insurance provides your business with the financial protection you need, allowing you to focus on developing your business.

Contact our insurance experts today to get a quote for the best professional liability insurance in Edmonton.

How Much Does Errors and Omissions Insurance Cost in Edmonton?

The cost of errors and omissions insurance varies depending on several factors, including your business type and size, revenue, and the risks associated with your business. Small businesses and individuals get lower premiums averaging $750 annually for a basic E & O insurance policy with $1 million in coverage. Meanwhile, larger businesses in high-risk industries may pay premiums ranging from $2,000 to $5,000 per year due to the increased likelihood of claims.

What Factors Affect Professional Liability Insurance Costs in Edmonton?

The cost of E & O insurance in Edmonton, Alberta depends on several factors including:

• Industry: Businesses in high-risk industries pay higher premiums due to the increased likelihood of costly claims.
• Business Size: Small businesses’ premiums are lower than large companies because they have fewer employees and clients, lower revenue, and lower risk exposure.
• Coverage Limits: If you choose higher coverage limits, you’ll get better protection but you’ll have to pay higher insurance premiums.
• Claims History: Businesses with a history of lawsuits or professional liability claims pay higher insurance premiums because insurance companies view them as high-risk businesses.
• Licencing Requirements: Some professions in Edmonton require carrying a minimum level of professional liability insurance to comply with licencing requirements and industry standards.
• Insurance Provider: Your insurance rates may change from one company to another, which is why we recommend comparing quotes from multiple providers before buying insurance.

How to Save Money on Professional Liability Insurance in Edmonton

If you want to get the cheapest professional liability insurance coverage in Edmonton, follow these tips from our insurance experts:

• Compare Quotes: Never settle for the first quote you get. Shop around and check multiple providers till you find the right coverage for your business at the best possible rate.
• Increase Your Deductibles: If you increase your deductibles, you’ll get lower insurance rates. However, you should make sure that your business has the budget to pay the deductible amount in case of a claim.
• Choose the Right Coverage Limits: Ensure you only get the coverage required for your business to avoid overpaying for unnecessary protection. At Sharp Insurance, our brokers will help you protect your business and ensure you aren’t missing out on essential coverage or paying for unnecessary extras.
• Bundle Insurance Policies: Many insurance providers offer discounts when you combine several insurance policies into one bundle, when possible. Bundling not only helps save money, but also simplifies managing your coverage, making it more efficient.
• Work with an Insurance Broker: Partnering with a trusted insurance brokerage such as Sharp Insurance can help you navigate the market and get the best quotes. As a local brokerage, we have a deep understanding of the Alberta insurance landscape, industry-specific risks, and available discounts.

Get the cheapest professional liability insurance in Edmonton when you contact Sharp Insurance today!