Professional Liability Insurance in Ontario
Protect Your Business from Professional Mistakes
Professional liability insurance (PLI), also known as errors and omissions (E&O) insurance, protects professionals and businesses from claims related to errors, omissions, or negligence in the services they provide. If a client believes your professional advice or work caused them financial harm, they may file a lawsuit—even if no mistake was made.
Unlike commercial general liability (CGL) insurance, which covers bodily injury and property damage, professional liability insurance specifically covers financial losses resulting from professional services. For Ontario-based professionals who provide expertise, advice, or technical work, this coverage is essential for safeguarding against costly legal disputes.
GET A QUOTEWhy Choose Affiliated Insurance?
- Ontario-Focused Expertise: Affiliated Insurance Management understands the specific regulatory and industry requirements for professionals in Ontario and offers policies suited to your business type and risk exposure.
- Customized Coverage Solutions: Affiliated Insurance provides flexible coverage options designed to meet the needs of freelancers, small businesses, and large firms.
- Hassle-Free Claims Process: We make the claims process simple and efficient, ensuring you get the support and legal protection you need when facing a professional liability claim.
Why Ontario Professionals Need Professional Liability Insurance
In many industries, professional liability insurance is not just recommended—it’s required. Certain regulated professions in Ontario, such as accountants, lawyers, and real estate agents, must carry PLI as part of their licensing requirements. Even in industries where it’s not mandatory, many clients and businesses require proof of PLI before signing contracts.
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Common Professional Liability Risks
- An accountant in Toronto miscalculates a corporate tax return, leading to penalties for the client.
- A marketing consultant in Ottawa provides incorrect strategy advice, causing a client to lose significant revenue.
- A software developer in Mississauga makes an error in coding, resulting in a costly data breach for a client.
- An engineer in Hamilton misinterprets building regulations, leading to project delays and financial losses.
Without professional liability insurance, defending against these claims—even if they are false—can lead to hefty legal expenses, settlements, and reputational damage.
Key Benefits of Professional Liability Insurance
- Covers legal defense costs, including court fees and settlements.
- Protection against negligence claims, even if no actual mistake was made.
- Meets industry regulations for licensed professionals in Ontario.
- Strengthens client trust, as many businesses require PLI before signing contracts.
- Covers financial losses related to professional errors, delays, or missed deadlines.
Our Business Insurance Services
In addition to professional liability insurance, we offer a comprehensive range of business insurance solutions tailored to protect companies across various industries in Ontario.
How Much Does Professional Liability Insurance Cost in Ontario?
The cost of PLI varies based on industry, business size, and coverage limits. Below are estimated costs for different professionals in Ontario:
- Freelancers and consultants: $500 – $2,500 per year for $1 million to $2 million in coverage.
- Small and mid-sized businesses: $2,500 – $10,000 per year for $2 million to $5 million in coverage.
- High-risk professions such as medical, financial services, and engineering: $10,000 – $50,000 per year for $5 million or more in coverage.
Factors Affecting Your Premium
- Industry risk level, as some professions, such as financial services and engineering, have higher risks.
- Business size and revenue, since larger firms typically require higher coverage limits.
- Claims history, as a history of lawsuits can increase premiums.
- Policy limits and deductibles, where higher limits and lower deductibles raise costs but provide better protection.
For an accurate quote, contact Affiliated Insurance to get a customized PLI policy tailored to your profession.
Who Needs Professional Liability Insurance?
Professional liability insurance is essential for Ontario professionals who provide expert advice, consulting, or technical services. This includes:
- Consultants and business advisors, including management, IT, HR, and strategy consultants.
- Accountants and financial planners, such as CPA firms, bookkeepers, tax advisors, and investment planners.
- IT professionals and software developers, including web developers, cybersecurity consultants, and tech startups.
- Architects and engineers, such as civil, structural, and mechanical engineers and construction consultants.
- Healthcare professionals, including physiotherapists, dentists, and private medical practitioners.
- Real estate agents and mortgage brokers, including property consultants and home inspectors.
- Legal professionals and paralegals, including lawyers, legal consultants, and compliance officers.
If your profession involves providing expertise or services, professional liability insurance helps protect your career and business against financial loss.
Get a Professional Liability Insurance Quote in Ontario Today
A single lawsuit can threaten your career and financial stability. Whether you’re a consultant, accountant, or engineer, professional liability insurance protects your reputation and business from costly claims.
Contact Affiliated Insurance Management today for a personalized consultation and get a free, no-obligation quote tailored to your Ontario business.
GET A QUOTEWe operate in these areas:
- Business Insurance Ontario
- Business Insurance Oakville
- Business Insurance Burlington
- Business Insurance Wasaga Beach
- Business Insurance Toronto
- Contractors Insurance Ontario
- Contractors Insurance Toronto
- Fleet Insurance Ontario
- Commercial Property Insurance Ontario
FAQ
For some professions, such as accountants, lawyers, and real estate agents, PLI is legally required. Many consultants and service providers are not legally obligated but are often required by contracts to carry PLI.
PLI covers:
- Negligence claims, including allegations that your advice or work caused a client financial loss.
- Errors and omissions, including mistakes in work, project delays, or contract breaches.
- Legal defense costs, including court fees, lawyer expenses, and settlements.
No, professional liability insurance does not cover contract disputes unless they are tied to negligence or errors in service delivery. You may need legal expense insurance for contract-related issues.
- Professional liability insurance covers financial losses from errors, omissions, or negligence in services.
- General liability insurance covers bodily injury, property damage, and third-party claims.
Yes, many professionals bundle professional liability insurance with CGL and cyber insurance for comprehensive business protection.
Most professionals start with $1 million to $2 million in coverage, but high-risk industries, such as financial consulting or engineering, may require $5 million or more. Our team can help you determine the right amount based on your industry and client requirements.