Professional Liability Insurance, Vancouver | E&O
What Is Professional Liability Insurance (PLI)?
Professional liability insurance (PLI) is a coverage designed to protect businesses in Vancouver that offer consultancy services or advice. This policy, also referred to as errors and omissions insurance, covers claims made by clients for negligence, errors, omissions, breach of confidentiality, and failure to deliver a service as promised. Even with years of experience running your business, mistakes can still happen, and just one error could cost you thousands of dollars and damage your reputation. That’s why professional liability insurance exists. If a client files a claim against your business, this policy helps cover legal expenses, defence costs, and settlements if needed.
Contact our knowledgeable brokers today to learn more about PLI in Vancouver and get a personalized quote that fits your business needs.
Why Do I Need Professional Liability Insurance in Vancouver?
Business owners need PLI in Vancouver because it’s a competitive and fast-paced business environment, which increases the chance of disputes and legal claims. Even if the claim is unfounded, you will still spend a lot of time and money defending your business against lawsuits. The costs can add up quickly, and without comprehensive insurance coverage, you’ll be paying out of pocket for legal expenses, settlements and possible liabilities.
In a city where the stakes are high and client expectations are even higher, one small error can lead to major implications. No matter what industry your business operates in, professional liability insurance offers crucial protection against the financial and reputational risks of professional errors and mistakes. Contact our team today to secure reliable and cheap professional liability insurance in Vancouver.
Why Businesses Across Vancouver Choose Sharp Insurance
Friendly Service, Expert Advice
At Sharp Insurance, we strive to deliver a friendly service backed by expert advice you can trust. Our experienced brokers take time to listen to your specific needs, understand your business, and customize the right coverage plan for you.
More Than an Insurance Coverage
We aren’t just an insurance partner, we’re a team that really wants you to succeed. We go beyond selling you policies to offer you constant assistance, personalized guidance, professional advice, and real solutions that help you protect your business.
Quick and Easy Quotes
We know you’re busy and you’d prefer spending time growing your business rather than filling out endless forms. That’s why we provide a seamless and fast quoting process to get you covered without the need to wait for days. Since we’re an independent brokerage, we’re not tied to one insurance company, which allows us to compare multiple providers and get you the best coverage.
If you’re interested in securing professional liability insurance quickly, our streamlined process ensures you can get quotes and bind policies in just a few minutes.
24/7 Online Access to Your Policies
With Sharp Insurance, you can access your policy from anywhere through MySharp, our award-winning mobile application. It allows us to view your pink card anytime, manage your policies, submit new claims, and update your policy whenever you want.
What Does Professional Liability Insurance Cover?
Vancouver professional liability coverage protects businesses and their assets from financial losses caused by claims of errors, omissions, professional negligence, and misinterpretation. Professional liability insurance covers:
Professional Services
If a client accuses your business of causing financial loss due to a mistake, oversight, or failure to meet industry standards, professional liability insurance can help cover the losses. For example, if an architect delivers a flawed building plan that delays the project, the client may sue for damages. Even if the mistake is unintentional, the costs could be severe.
Media and Advertising
If you run a creative agency or work in the marketing sector, you’re exposed to several risks related to how your content is perceived by the public. No matter how good your campaign is, you’re never totally safe from being accused of defamation, libel, slander, copyright infringement, or false advertising. For example, if a competitor accuses your client of using a branding similar to theirs, they can sue for intellectual property infringement or reputational damage. PLI can protect your business and client from such allegations and help cover legal costs if needed.
Legal Costs
If a lawsuit is filed against you or a client of yours due to a professional error or misleading advice provided by your business, PLI helps cover the legal fees associated with the claim. This coverage protects your business from potential financial strain and reputational damage by paying the defence expenses, court fees, and settlements associated with the claim. For example, if you have a legal firm and a client accuses one of your lawyers of providing incorrect legal advice that results in a lost case or financial loss, they may file a lawsuit. To defend your business, you’ll need to pay a lot of money and spend a lot of time on the case. Professional liability insurance can handle this for you, allowing you to operate your business with no setbacks.
Who Should Carry Professional Liability Insurance in Vancouver?
Although PLI, also known as Errors and Omissions (E&O) insurance, isn’t mandatory for every profession in Vancouver, it’s a must for any business that provides professional advice or services. Even without legal or licencing requirements, professionals are still vulnerable to claims of negligence, misrepresentation or failure to deliver expected results.
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Is Professional Liability Insurance Legally Required in Vancouver?
Carrying a professional liability insurance policy is mandatory for several professions in Vancouver, especially those governed by provincial regulatory bodies and professional organizations. These professionals are required to carry professional liability insurance to comply with licencing or legal requirements.Some of the professions that require professional liability insurance (PLI) are:
Lawyers
Lawyers and legal firms in Vancouver and across BC are required to carry PLI through the Lawyers Indemnity Fund as mandated by the Law Society of British Columbia. Lawyers must carry a minimum of $1 million in coverage per claim and a $2 million annual aggregate. Given the sensitive nature of legal work, even small mistakes can lead to major financial losses for clients.
Accountants
Chartered Professional Accountants (CPAs) are required to carry PLI in Vancouver to help protect against claims arising from accounting errors or audit failures. The Chartered Professional Accountants of British Columbia (CPABC) mandates that all CPA firms must carry a minimum of $1 million in coverage per claim.
Engineers and Geoscientists
Engineers and geoscientists are responsible for very important projects that directly impact people’s safety and the environment. That’s why the Association of Professional Engineers and Geoscientists mandates all members to carry professional liability insurance with a minimum coverage of $250,000 per claim.
Architects
Architects are liable for building designs that must meet both aesthetic goals and safety and regulatory standards. In Vancouver, all architectural firms should maintain professional liability insurance coverage according to the Architectural Institute of British Columbia (AIBC).
Healthcare Providers
Healthcare professionals are responsible for people’s lives, so they are held to the highest standards of care. That’s why many healthcare providers are legally required to carry PLI in Vancouver to protect against professional liability claims of negligence, malpractice and errors in treatment.
Real Estate Agents
Real estate professionals handle transactions of large financial investments, so they must carry professional liability insurance. This coverage helps protect them against claims of misrepresentation, contractual mistakes or disclosure errors.
Industries We Serve PLI
Sharp Insurance sells professional liability insurance in Vancouver 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 Vancouver. Get a Quote today!
What Professional Liability Insurance Doesn’t Include
Although professional liability insurance offers important protection against many scenarios in Vancouver, there are times when it won’t cover you. While PLI offers peace of mind by covering many scenarios, there are specific instances where it won’t provide coverage.
Below are some cases where PLI can’t step in:
- Third-Party Liability Claims: Professional liability insurance doesn’t cover third-party liability claims of bodily injury or property damage. These claims are covered by commercial general liability insurance, another type of coverage that’s essential for business owners.
- Criminal Acts: If you intentionally commit fraud or provide harmful advice, professional liability insurance won’t cover you. Insurance is designed to ensure your business operates smoothly when honest mistakes happen, not to shield you from the consequences of intentional misconduct.
- Employee Injuries: Errors and Omissions insurance doesn’t cover employee injuries, and you’ll need a separate insurance policy to cover them. Contact us today to learn more about different insurance policies and discuss your business needs with our knowledgeable brokers.
- Cybercrimes: PLI doesn’t cover against ransomware attacks, data breaches, and cyber crimes. If your business uses digital databases to store clients’ data or if you own a website, you need to buy cyber liability insurance to protect against these risks.
- Employee-Related Claims: E&O doesn’t cover any employee-related disputes involving discrimination, harassment, or wrongful termination. This type of claim is covered under employee liability insurance (ELI), not professional liability insurance (PLI).
How Much Does Professional Liability Insurance Cost in Vancouver?
The average cost for PLI in Vancouver is between $500 and $2,000 annually. However, professional liability insurance costs vary widely from one business to another based on several factors, including the size and type of business, industry standards, services provided, and the level of risk involved.
Other factors include:
- The business’s annual revenue
- Your claims history
- Your coverage type and limits
- The number of employees
Although most small businesses can pay around $500 to $2,000 annually for PLI, larger businesses or those working in high-risk industries can expect to pay annual premiums up to $5,000 or more.
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Our experienced PLI brokers in Vancouver can help you get comprehensive coverage from the best providers in the industry. The process is quick and easy. Get an online Vancouver PLI quote now.
What Are the Coverage Limits of Professional Liability Insurance?
Coverage limits refer to the maximum amount your insurance provider will pay in case of a claim, and throughout the duration of your policy. For example, if you buy a $1 million per-claim limit and a $2 million aggregate limit, your insurer will pay up to $1 million for a single claim, and no more than $2 million for all the claims filed during the policy period.
Smart Tips to Save on Professional Liability Insurance in Vancouver
- Compare Quotes: Never settle for the first quote you receive. Instead, shop around and compare quotes from multiple insurance providers till you find one that fits your specific needs without inflated premiums. Our brokers at Sharp Insurance compare quotes on your behalf to get you the best policy from a top provider in Vancouver. Our brokers can assist you in person or over the phone to ensure you get the best possible rates.
- Bundle Your Insurance Policies: Many insurance providers offer a discount when you combine several insurance policies into one bundle. Besides being cost-effective, bundling your policies facilitates paperwork and makes it easier for you to manage your coverage.
- Increase Your Deductibles: If you increase your deductibles, you’ll get lower insurance premiums. However, you should make sure your business has the budget to pay the deductible in case of a claim.
- Maintain a Clean Claims History: Many insurers offer discounts to businesses with a clean claims record. Practicing clear communication, using written contracts, and documenting client interactions can help reduce the risk of claims.
- Review Your Policy Regularly: Reviewing your policy each year and updating it can help protect you from coverage gaps or paying for unnecessary add-ons. Our brokers at Sharp can help you choose the right coverage for your business and ensure your policy evolves with your business.
Get an online quote for your business today!
Get a Vancouver 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 Vancouver, making sure you can get the insurance you need at an affordable price. Get a quote now!
Professional Liability Insurance, Vancouver – FAQS
On average, a $1 million professional liability policy would cost around $500 to $1,500 per year for a small to mid-size business in Vancouver. This range is an estimate, but the actual cost depends on many factors, including industry risk exposure, business size, revenue, number of employees, and claims history.
For most small to mid-size businesses in Vancouver, PLI costs between $500 and $1,500 per year for $1 million in coverage. Higher-risk professions may pay $2,000 to $5,000 or more, depending on factors like industry, revenue, and claims history.
If you run a business that offers professional advice or services in Vancouver, then yes, you need professional liability insurance to protect your business against claims of professional negligence, errors, omissions, and oversight. This policy covers the legal costs and settlements associated with professional liability claims.
Professional liability insurance rates in Vancouver are affected by several factors, such as industry risk level, business size, revenue, claims history, coverage limits, and type of services offered.
Professional liability insurance covers claims related to professional mistakes, errors, and negligence. However, commercial general liability covers claims of bodily injury, property damage, or personal injury that arise because of your business operations.
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