Professional Liability Insurance Edmonton

Professional Liability Insurance Explained

Professional liability insurance, also called errors and omissions (E&O) insurance, is designed to protect Edmonton-based professionals from allegations against their business due to negligence, and errors and omissions

You may need to carry this type of coverage for two reasons: 

• If you are contractually obligated to have insurance.
• To combat the high cost of a lawsuit if you are sued.

Lawsuits can be extremely expensive. Depending on your industry (and if it is required) a professional liability policy in Canada will require your business to obtain at least $1 million in coverage.

Professional liability insurance can cover your business for: 

• Settlements
• Legal fees
• Administrative fees
• Defense costs
• And more

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What Does Professional Liability Insurance in Edmonton Cover?

Professional liability insurance for Edmonton professionals helps defend businesses by covering legal expenses if they are sued for negligence or errors and omissions. Negligence can take many shapes and forms.

Here are a few examples of claims that a professional liability insurance policy may cover:

• While filing a report at a health clinic, you make an administrative error, which results in unnecessary costs being added to a patient’s bill.
• You work as a therapist, and your customer feels as if your counselling efforts are ineffective. They are suing to recover what they paid for your services.
• While working as a marketing consultant, you overbook yourself and fail to meet a critical deadline. Your client is suing you for lost time.

Professional liability insurance can cover a variety of scenarios for a professional offering services or advice. For example, whether you are a tax accountant or an IT consultant you will likely require a PLI policy. Read our blog on this subject here: tax accountant protecting yourself against the unexpected

To safeguard your bottom line, professional liability insurance – in its many forms – can give you peace of mind and it will allow you to get back to doing what you do best.

Every policy has its limits. At EasyCover, we offer three levels of protection: $1 million, $2 million, or $5 million. These limits are the total amount your policy will pay out over a 12-month period, even if you make multiple claims during that period. 

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How Does Professional Liability Insurance Work?

Since professional liability insurance is written as a claims-made insurance policy, only claims made during the coverage period are covered by your insurer.

PLI policy contains two distinct features:  

• Extended reporting date: the date in the future when claims may still be covered, even if your policy has ended.
• Unlimited Retroactive date: the inception of the policy period that may be set to a date in the past.

So long as your claim meets the following conditions, your claim should be honoured:

1. You only became aware of the grievance against you during the policy term.
2. The claim is reported to us during the policy term.

Typically, most professional liability insurance policies will place the retroactive date to the policy’s inception date. This means you would have no coverage for any work you did prior to that policy’s initial inception date.