Professional Liability Insurance, Saskatchewan | E&O
What Is Saskatchewan Professional Liability Insurance?
Professional liability insurance in Saskatchewan is essential coverage for individuals or businesses that provide professional services or consultancy. Also known as errors and omissions insurance, this policy protects against claims of professional negligence, mistakes, misrepresentation, oversight, and failure to meet clients’ expectations.
Even if you’re so good at your work and you have years of experience under your belt, your business is not totally immune to professional liability claims because mistakes and misunderstandings are inevitable. Whether it’s you or one of your employees, one mistake can lead to expensive lawsuits and major damage to your professional reputation. Even unfounded accusations can cost you thousands of dollars in defense costs and court expenses.
If you want to protect your business from financial strain and unexpected legal challenges, contact us today to get the best quotes for professional liability insurance in Saskatchewan.
Who Needs Professional Liability Insurance in Saskatchewan?
Any business or individual offering professional services or advice needs professional liability insurance to protect them against professional liability claims and potential lawsuits.
These businesses include:
Accountants and Financial Advisors
Professionals who deal with large sums of money, financial planning, tax calculations, and other similar services face a high level of responsibility and risk. Even if you’re exceptional in accounting, a single miscalculation or a piece of inaccurate advice can cost your client thousands, which might lead to claims and lawsuits.
Consultants and Business Advisors
Similar to financial advisors, business advisors also face legal exposure if their advice leads to financial setbacks or operational issues for their clients. Even if your advice was calculated and somehow causes financial loss, your client can still sue you for it.
IT Professionals
Software developers and IT professionals in Saskatchewan deal with a lot of sensitive data, complicated systems, and critical software that businesses rely on daily. These professionals can be held responsible for data breaches, software bugs, and system outages that cause business interruption for their clients. Even if you’re following cybersecurity best practices, one overlooked detail can result in a costly claim.
Lawyers and Legal Professionals
Lawyers and legal firms need professional liability insurance coverage to protect against claims of negligence, missed deadlines, bad advice, and documentation errors. If your client believes that you didn’t handle their case properly, they can file a claim against you, and even if the alleged claim is false, it’d still waste a lot of time and money without PLI.
Healthcare Providers
Professional liability insurance for healthcare providers is called malpractice insurance, and it’s designed to protect doctors, therapists, and other medical professionals from professional liability claims. The most capable doctors can sometimes make mistakes that lead to misdiagnosis, delayed treatment, or unexpected complications. Even if the harm is unintentional, your patient can still sue you for it, which would have a negative impact on your professional reputation.
Marketing Professionals
Marketing companies and freelancers depend on their creative strategies to create campaigns and drive results for their clients. However, clients may file a claim alleging financial loss if a campaign doesn’t perform well. In some cases, you can be sued for personal injury claims, including defamation, libel, or copyright infringement. You need to carry professional liability insurance to protect against these claims so you can focus on your creative work.
Do Small Business Owners Need PLI, Saskatchewan?
Although small businesses have fewer clients and smaller budgets compared to large companies, they still need professional liability insurance. Considering small businesses’ budgets, they’re even more vulnerable to legal claims because they usually lack the financial resources to recover from a lawsuit. A single claim for an error, oversight, or missed deadline can lead to costly legal fees, settlements, and reputational damage.
Without PLI in Saskatchewan, these costs can accumulate and disrupt your small business operations, causing financial strain and long-term damage to your reputation. At Sharp Insurance, we understand the challenges small businesses face, and we’re committed to finding you the best professional liability insurance at affordable rates.
Get a QuoteIs Professional Liability Insurance Mandatory in Saskatchewan?
Carrying professional liability insurance is mandatory for some professions in Saskatchewan, such as:
- Healthcare Providers: Doctors, therapists, paramedics, and other medical professionals must get a form of professional liability coverage named malpractice insurance. In some cases, PLI can be included in the annual membership of some colleges, such as the College of Licensed Practical Nurses of Saskatchewan.
- Legal Firms: The Law Society of Saskatchewan mandates that all practicing lawyers carry professional liability insurance that meets minimum requirements.
- Accountants: Financial advisors and CPAs are required to carry professional liability insurance with coverage limits depending on their scope of work and responsibilities.
- Engineers: Architects and engineers must have errors and omissions insurance (PLI) to comply with licensing requirements.
Although professional liability insurance, also referred to as errors and omissions insurance, isn’t legally required for every profession in Saskatchewan, it’s very important for all businesses that offer professional advice or services. Clients can still sue you over alleged negligence, misrepresentation, or errors in services rendered, which can damage your reputation and cause financial strain if you’re not properly protected.
What Does Professional Liability Insurance Cover in Saskatchewan?
Saskatchewan professional liability insurance, or errors and omissions insurance, includes coverage for:
- Legal Fees: If a client files a lawsuit against your business, PLI helps pay legal fees, including defence costs, court expenses, and settlements if needed.
- Negligence and Oversight: It covers unintentional errors, omissions, mistakes, and oversight that might cause financial loss to your client.
- Misrepresentation or Inaccurate Advice: If your client accuses your business of providing misleading information or poor advice, E&O coverage can help you respond to this claim.
- Failure to Meet Client’s Expectations: If your work doesn’t meet your client’s expectations or if you fail to complete a project as agreed, your client can file a claim against you. PLI can help you deal with these cases.
- Claims Related to Services Rendered: If the services you offer cause financial loss to your client and he sues you for it, this insurance coverage helps handle these disputes.
- Defamation and Copyright Infringement: If you’re working in the marketing or media field, you might face claims related to libel, slander, or unauthorized use of copyrighted material. Your professional liability insurance policy can help you cover these claims.
Protect your business with professional liability coverage from the best insurance company in Saskatchewan. Get a Quote today!
Industries We Serve PLI
Sharp Insurance sells professional liability insurance in Saskatchewan 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 Saskatchewan. Get a Quote today!
Why Professionals Across Saskatchewan Trust Sharp Insurance
Your Local, Independent Insurance Partner
Sharp Insurance has been an independent brokerage since 2009, proudly serving professionals and businesses across Saskatchewan. As a local brokerage, we do what’s in your best interest because we’re not tied to one insurance provider.
Affordable Insurance Solutions
Since we have access to the best insurance companies in Saskatchewan, we will get you the right coverage for our business at an affordable rate. We compare quotes for you and ensure the policy fits your needs, risk level, industry standards, and licensing requirements.
24/7 Access to Your Policy
You can access your policy anytime, anywhere with our award-winning mobile app: MySharp. Whether you need to view your pink card, review your policy, submit a claim, or request changes to your policy, you can do it all easily with MySharp.
Knowledgeable Customer Support
We aim to keep you well-informed every step of the way, whether you’re buying a new policy, filing a claim, or updating your coverage. Our team of dedicated customer support agents are here to answer your questions and provide assistance whenever needed.
Stay Informed: Common Professional Liability Coverage Exclusions
Criminal Activities
Professional liability insurance, or any other insurance coverage, won’t cover criminal activities such as intentional misconduct, fraud, theft, or illegal actions. Insurance is designed to protect against unexpected events and unintentional mistakes, not knowingly wrongful behaviour.
Third-Party Liability Claims
Errors and omissions insurance doesn’t protect against third-party liability claims of property damage and bodily injury. You need commercial general liability insurance (CGL) in Saskatchewan to protect against these claims.
Employee Disputes
If an employee of yours files a claim involving harassment, wrongful termination, or discrimination, it will not be covered under your professional liability insurance. You’ll need a separate policy to protect against these claims.
Cyber Attacks
E&O insurance in Saskatchewan doesn’t cover ransomware attacks, hacking, or data breaches. If your business handles sensitive client data or operates online, you’ll need cyber liability insurance to protect against these risks.
Copyright Infringement
Professional liability insurance doesn’t automatically cover Claims or lawsuits involving trademark issues, libel, slander, or false advertising. If you need to have these claims covered, you should notify your insurance provider when buying your policy to have this additional coverage.
What Is the Average Cost of Professional Liability Insurance?
The cost of professional liability insurance in Saskatchewan ranges between $500 and $3,000 annually for small to medium-sized businesses, while larger companies can pay up to $5,000 for PLI per year. We encourage you to contact us today to get an accurate quote for professional liability insurance coverage because every business is different. Your premium will be based on several factors, including your industry, risk level, number of employees, and coverage limits.
Factors Affecting Your Professional Liability Insurance Premiums
- Industry: Professions that are exposed to higher legal or financial risks, such as healthcare, legal services, and financial services.
- Number of Employees: The number of employees in your company increases the risks of mistakes, which can increase your insurance premium.
- Business Size: Larger businesses pay higher premiums compared to small businesses.
- Claims History: If your business has had previous claims or lawsuits, insurers may charge a higher premium because they’ll view your business as a higher risk.
- Coverage Limits: Higher coverage limits provide better protection, but they can increase your insurance premiums.
How to Secure Cheap Professional Liability Insurance in Saskatchewan
- Compare Quotes: Shop around and get quotes from multiple insurance providers to find the best rates. We understand this process is time-consuming; that’s why we compare quotes for you to get you the coverage your business needs at competitive rates.
- Opt for Higher Deductibles: Choosing higher deductibles can reduce your insurance premiums. You must ensure your business has the budget to pay this deductible in case of a claim.
- Keep a Clean Claim History: A business with no past claims or lawsuits is viewed as a lower risk by insurance providers. Ensure you follow your industry’s best practices and double-check your work to reduce the chance of errors.
- Choose the Right Coverage Limits: Ensure you get the coverage you need because sometimes, opting for higher coverage limits can lead to unnecessary costs. An experienced insurance broker can help you get the appropriate coverage limits for your business.
- Bundle Insurance Policies: Combining more than one insurance policy into one bundle can lower your insurance premiums.
- Pay Your Premiums Annually: Pay your insurance premium annually instead of monthly to save on administrative fees.
- Partner with an Insurance Broker: Partnering with a reliable insurance broker like Sharp Insurance can help you by facilitating the entire insurance process—from comparing quotes to understanding coverage and filing claims.
What Is the Difference Between Professional Liability Insurance and General Liability Insurance?
Each one of these policies covers a different type of claim:
Professional Liability Insurance: This policy, also known as errors and omissions insurance, covers claims of professional errors, mistakes, negligence, and oversight. Businesses that offer professional services or advice need PLI to protect them from financial strain and reputational damage.
General Liability Insurance: Commercial general liability insurance protects businesses from third-party liability claims of bodily injury or property damage. For example, if a client slips and falls on your business premises and he files a claim against your business, CGL will help you respond to this claim.
Contact Sharp Insurance today to learn more about professional liability insurance, commercial general liability insurance, and other services!
Get a QuoteWhat to Do If a Client Files a Claim Against You
- If you become aware of a potential claim, contact your insurance provider or broker immediately to notify them.
- Collect all relevant documents, including emails, contracts, reports, invoices, and communications related to the issues.
- Submit a clear report of the incident, including the event, dates, people involved, and any other related information.
- Cooperate with the claims adjuster assigned to your case and share any documents he requests.
- If the claim escalates and becomes a lawsuit, your policy will cover the legal expenses associated with it, including defense costs, court expenses, and settlements.
- Stay in contact with your insurance broker and track updates. They will guide you through every stage and let you know what to expect next.
Saskatchewan Professional Liability Insurance FAQs
Professional liability insurance in Saskatchewan protects businesses and individuals that offer professional services or advice from claims of professional negligence, errors, mistakes, and oversight. It helps cover legal fees, court expenses, and settlements associated with professional liability claims, which keeps your business secured against financial strain and reputational damage.
Professional liability insurance, or any other insurance, doesn’t cover criminal activities such as intentional misconduct, fraud, and illegal behaviours. Also, PLI doesn’t cover third-party liability claims of bodily injury or property damage; these claims are covered by commercial general liability insurance.
The average cost of professional liability insurance in Saskatchewan ranges from $500 to $3,000 per year for small to medium-sized businesses. Larger companies or high-risk professions, like legal firms, healthcare providers, or financial advisors, may pay up to $5,000 annually,
Professional liability insurance (PLI) and Errors and Omissions (E&O) insurance refer to the same type of coverage, and both names are used interchangeably.
Any individual or business in Saskatchewan that provides professional services or advice should carry professional liability insurance. Even the most experienced professionals can face legal claims from clients who believe an error, delay, or poor outcome caused them financial harm. Some of the professions that need professional liability insurance are:
- Healthcare Providers
- Legal Firms
- Accountants and Financial Advisors
- IT professionals
- Architects and Engineers
- Marketing Professionals
- Real estate Agents
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