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Professional Liability Insurance (E&O)

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Professional Liability Insurance (E&O)

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Professional Liability Insurance in Alberta & Ontario

Sharp Insurance offers professional liability insurance in Alberta and Ontario. For hardworking law professionals, financial advisors, consultants, counsellors and more, protecting your company’s reputation is non-negotiable. Professional liability insurance is critical protection if you provide professional services or advice to your clients. If you are accused of negligence in your services or defective products, you require financial protection.  

While having commercial general liability insurance is imperative to any business, for certain businesses it’s not enough to protect them from a broad variety of errors,  omissions and negligent acts. The bottom line: professionals in Alberta and Ontario need professional liability insurance to protect their business.   

Want to get started? You can obtain a free professional liability insurance quote with Sharp Insurance today. Simply click the quote button to begin.

Industries We Serve

Here are some of the industries we serve: 

  • IT consultants 
  • Construction contractors 
  • Social services 
  • New media 
  • Photography 
  • Legal services 
  • Health and wellness 
  • Managers 
  • Consultants 
  • Finance 

What Does Professional Liability Insurance Cover?

Professional Liability Insurance covers you in the event of: 

  • Negligence claims 
  • Court costs 
  • Personal injury, such as slander and libel 
  • Copyright infringement

What is the Easiest Way to Get an E&O Quote in Alberta?

Professional liability is insurance designed to protect the individual or business in the event of being sued for services and advice you provided that is not covered under your company’s Commercial General Liability policy (CGL). A CGL policy typically covers third-party liability claims such as injury and property damage but does not cover you for alleged negligence, advise or services that you provide to clients.  

While we find you the best coverage for your business, you can focus on building your career — without worrying about any of the what ifs. One of our experienced professional liability insurance brokers will work on your behalf to find you great coverage at a better price!

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What is Covered under a Professional Liability Insurance Policy?

Did you know that you could be sued by a client for negligence or for a product you provide that is defective? Your client could also sue you for inadequate work. At Sharp Insurance, we want you to work with confidence — let us take care of the insurance so you can focus on what you do best. 

Here is an example of a Professional Liability Insurance claim: 

An accountant files taxes for a client for five years. The client finds out that they are being investigated for tax evasion and sues the accountant for negligence. The right coverage, in this instance, would protect you.

Below is a list of what’s typically covered under a PLI policy: 

Defamation and slander

You’ve launched an ad campaign that unintentionally disparages someone else’s product, and they sue you. 

Administrative error:

You accidentally neglect to file an application for a client’s project, resulting in numerous delays. 

Professional error

You hire someone for a job without doing a diligent background check and your client sues you for negligence.

Inaccurate or misleading advice

While doing your work and offering advice, a client says that your advice misled them, resulting in their monetary loss. 


You accidentally forwarded a private email to a third-party rather than the intended recipient, who sues you for breach of privacy.

Why it’s Essential to Have Professional Liability Insurance

There are a wide variety of scenarios that warrant having professional liability insurance. Where there is proofing, quality control, advise and communication, there’s a risk for error. Having professional liability insurance is one aspect of risk management, which is crucial for your business’ longevity and well-being. 

Professional liability insurance policies have different levels of coverage. These are the maximum dollar amounts that your policy will pay out during the 12-month policy term, regardless of how many claims you end up making during this time. Common coverage levels include: 

  • $1 million 
  • $2 million 
  • $5 million 

Depending on your needs, you’ll want to work with a professional liability insurance broker to determine the total amount of coverage you need for your business. You’ll necessitate different levels depending on your risk, which is based on your industry, your business experience and more. 

Want to begin? Fill out a quick form and get your free, no-obligation professional liability insurance quote today.

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What Factors Impact your Insurance Rate for Professional Liability Insurance?

Your professional liability insurance premium is weighed based on several different factors. Your insurer and the level of coverage you choose are two big variables. Sharp Insurance will work with you to help you find comprehensive insurance at the lowest possible rate. 

Here are some factors which will influence your Professional Liability Insurance premium: 

  • Number of employees 
  • Business size 
  • Business history 
  • Insurance history 
  • The province you operate your business 
  • Your industry 
  • Quality and number of contracts you take on 

Different industries and different businesses face various levels of risk. You likely won’t pay the same for your professional liability insurance policy as the business down the street. Ask your professional liability insurance broker about special factors that may affect your insurance rate. 

FAQs for Professional Liability Insurance

Did you know that professional liability insurance can also be referred to as errors and omissions insurance? Below are some of our most frequently asked questions. If you do not see the answer to your question here, give one of our professional liability insurance brokers a call.

New media professional liability insurance is necessary for an immense variety of new media professionals. The list includes brand consultants, copywriters, editors, interior designers, media buyers, website marketers, advertising consultants, social media professionals and so much more. For these businesses, a critical component of their risk management plan should be professional liability insurance. 

While it may not be mandatory for managers to have business insurance, a manager who has professional liability insurance can benefit, as the insurance will protect them financially if they are sued. Managers can face claims alleging negligence, errors and omissions, misleading information and more. Managers often work with large groups of people and may also interact with clients, making their job even more at risk. 

Your professional liability insurance rate is based on many different variables. However, there are a few other ways you can reduce your current rate. Ideally, work with a professional liability insurance broker to discover how you can get lower rates.  

Here are some tips to decrease your PLI premium: 

  • Practice proper risk management. Identify risks and mitigate them accordingly. 
  • Train employees. The biggest risks you will find often relate to human error. 
  • Avoid risks that are inevitable if your business is small and may not be able to recover. 
  • Purchase only what you need when it comes to insurance coverage.  
  • Work with a professional liability insurance broker to help reduce your rates. 
  • Bundle multiple insurance policies through a single provider. 
  • Ask about eligible discounts. 
  • Raise your deductible, which will lower your premium.  

Any business that offers advice or gives a professional service to its clientele will benefit from professional liability insurance. Your company may also need another type of business liability insurance depending on the industry. But PLI is the only type of coverage that protects against dissatisfied clients who may opt to sue over a missed deadline, delay, quality of work or mistake. 

In many professional industries, professional liability insurance claims are common. Businesses and industries that may require PLI, include:  

  • Construction contractors 
  • Social services 
  • Financial advisors 
  • Health professionals 
  • Counsellors 
  • Consultants 
  • Managers 
  • Legal professionals 
  • IT consultants  
  • Photographers 
  • New media professionals 
  • Forensic experts 
  • Engineers 
  • Managers 
  • And more 

General liability insurance, also known as commercial liability insurance, is a common type of liability insurance that businesses who interact with clients should have, as it protects them from property damage and bodily injury claims. For example, if a client visits your business and slips and breaks their arm, they could sue you for expenses related to the fall, including medical costs, rehab and more.  

At the same time, businesses who offer professional services or advice to their clients may need both general liability insurance and professional liability insurance. Some companies face the risk of bodily injury, property damage claims and dissatisfied clients that may sue for errors and omissions, negligence and more.  

One of Sharp’s business liability insurance brokers can walk you through the benefits of both types of business insurance policies and match your needs to the proper policy.  

Professional liability insurance can cover lawsuits that occurred because of alleged financial loss but weren’t found on anything legitimate. You might be faced with numerous legal expenses in the event of such a case, even if the lawsuit never makes it to court. You’ll still be covered in this instance. 

If you’re sued over a work mistake or negligence, professional liability insurance can pay for your legal expenses. Lawsuits, even those that occur over a false accusation, can sometimes cost you up to hundreds of thousands of dollars, depending on the complexity and the length of the dispute. The willingness of your dissatisfied client to settle is also a factor.  

Costs for a lawsuit or legal defenses can include: 

  • The hourly costs to pay a lawyer for all the time they spend on your case. 
  • Administrative costs from your legal team for data processing, travel, shipping, copying, etc. 
  • Court costs for filings and hearings. 
  • Paying expert witnesses to explain more technical aspects of what you plan to argue. 
  • Settlement fees if you want to avoid a trial or if a court-ordered judgement requires you to pay a settlement, should you lose your trial. 

PLI insurance is not mandatory for every industry. For some industries, provincial requirements will mandate carrying professional liability insurance. This is true of some medical professionals, where purchasing E&O insurance comes in the form of purchasing medical malpractice insurance. For other professionals, such as lawyers and financial advisors, it can be a case-by-case basis as to whether you need professional liability insurance. 

For some occupations, clients may prefer to work with those that are insured than those that are not. This means you could lose out on potential work without the right insurance. 

All in all, professional liability insurance is highly recommended even if your industry does not necessitate it. Many small businesses do not have the financial muscle to recoup following a loss, so it’s better to be safe than sorry. 

Why Choose Sharp Insurance?

As a fast-growing independent insurance brokerage, Sharp Insurance is happy you’ve chosen us to protect your business. We believe in providing our clients with a broad range of product offerings, offering unbeatable service, low prices and comprehensive coverage. We’ve developed innovative tools to help improve our customer’s insurance journeys, always valuing empowerment, exceptionalism and connection. 

We offer excellent customer service and digital tools that our competitors don’t have. If you have any questions about professional liability insurance and what we offer, give our professional liability insurance brokers a call today to discuss your coverage options, what you need and how we can help you get it.  

Get free quotes for a professional liability insurance policy in Alberta or Ontario today. We make it easy and affordable to work with us, wherever your business resides.  

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