Compare Professional Liability Insurance

You could save thousands of dollars by getting multiple professional liability insurance quotes and comparing prices.

Get up to three professional liability insurance quotes by answering a few questions

How to shop for your next professional liability insurance policy on Hardbacon

Comparing the prices of several insurers before choosing a professional liability insurance policy can generally save hundreds of dollars a year. Follow these 4 steps to get multiple quotes.

Tell us where you're located

The first step is to enter your province in the box on the left, then click on “Compare”. Your location will enable us to redirect you to the appropriate partner.

Tell us more about your business

The second step is to complete our partner’s form, which will begin by asking for the title of your profession, your gross revenue, the number of employees you have and your experience. It will also inquire about your doing business with exterior contractors.

Specify the risks involved

The third step is to answer questions about where you do business, if your work is related to industries such as cannabis, construction, petrochemicals, as well as other things you might do such as renting cars, visiting clients in their home, giving tax advice or conducting laboratory tests.

Finalize your request

The fourth and final step is to indicate your address, the proprietorship structure and the legal name of your business. At this stage, you will be able to choose if you want other protections on top of legal expense insurance. Once you submit your application, the quotes will appear on your screen.

Tips to save on your next professional liability insurance policy in Canada

Shop around for your insurance

Insurers are very competitive with each other. It’s therefore advantageous to get quotes from several companies or to find an insurance broker who’ll do it for you. If you have a company vehicle, bundling your insurance could possibly help you save money. While shopping, do not hesitate to ask which insurers offer discounts to members of your professional association, if you belong to one.

Increase your deductible

The deductible is the amount you’ll need to pay in the event of a claim. Normally, by increasing your deductible, you’ll lower your premium. You’ll have to pay a little more when making a claim, but this strategy can pay off very well if you don’t make a lot of claims.

Reassess your needs

Having coverage tailored to the real risks facing your business will ensure that you pay an amount proportional to your actual needs. You can always modify the contract as your business evolves over time. Remember, the higher the coverage amount, the higher your premium will be.

Deduct your premiums from your taxes

Like bad debts, equipment expenses and employee salaries, business insurance premiums can be tax deductible. Check with an accountant to see if this strategy is possible and advantageous for your company.

Frequently asked questions about professional liability insurance

How much is professional liability insurance?

The cost of professional liability insurance varies greatly from one company to another. Given the size of each business, its sector of activity and the risks it faces, there’s no single answer. For example, a small roofing contractor will have a higher cost for liability insurance than an ice cream shop. If the contractor damages a house, the claim is likely to be high. Liability insurance limits generally range from $1 million to $5 million. However, here are some indications of the premiums you can expect in certain situations: for a self-employed worker, a premium of $500 a year can provide decent coverage; for a large company, the premium can reach several tens of thousands of dollars annually.

What is covered by professional liability insurance?

Third-party liability insurance covers property damage or bodily injury suffered by the customer, as well as legal costs in the event of a lawsuit. For example, if a customer is seriously injured after a fall in your establishment and decides to take legal action, this could jeopardize the financial stability of your business. Insurance offers your company protection in the event of a lawsuit resulting from unintentional injury to a third party. The damage must be related to your company’s activities, its premises or the products and services it offers. Liability insurance helps reduce the financial impact of such situations on your company.

What is professional liability insurance?

Professional liability insurance is also known as errors and omissions insurance. It covers intangible damage inflicted on others. For example, if you give bad information, give bad advice or make bad decisions for your clients, they could sue you, especially if they have suffered financial loss. Professional liability insurance is designed for any self-employed person or company offering services.

Do i need professional liability insurance?

It’s perfectly normal to wonder whether you should take out professional liability insurance, especially when your business is just starting out and seems to be exposed to limited risks. However, it’s essential to consider that inexperience, fatigue and stress can potentially lead to mistakes, even in the initial phases of a business. That’s why it’s strongly recommended to take out professional liability insurance right from the start. This insurance offers crucial protection in the event of disputes, complaints from unhappy customers, or unintentional damage caused to others in the course of your professional activity. It’s a smart preventive measure to establish your company’s reputation, minimize the financial consequences of any mistakes, and enable you to grow with peace of mind. In some professions, such as healthcare and consulting, it’s mandatory to have one. But even if you don’t have to, some customers may take a dim view of your lack of professional liability insurance.

Does professional liability insurance cover errors and omissions?

Yes, professional liability insurance covers errors and omissions. In fact, the two terms are used interchangeably to designate the same type of insurance product. It’s a commercial insurance for professionals who provide services and advice. It protects them in the event of malpractice. It is compulsory for certain professionals, such as lawyers and doctors, but more and more professionals are now applying for it.

How do I get professional liability insurance?

There are several ways to obtain professional liability insurance for your business. Start by contacting your professional association, if you belong to one, to ask if it recommends an insurer and if discounts are available. Then, use an online policy comparison tool to get an idea of market prices. Also, talk to your insurance representative to find out what coverage your company needs most.

How much professional liability insurance do I need?

The cost of your insurance premiums is linked to the amount of coverage you have. You want to be adequately insured, without being over-insured! The amount of insurance coverage you need depends on the size of your business and the level of risk you’re willing to take. Think about your industry and how much a disgruntled customer is likely to claim. Add to this your legal costs for your defense. This is the minimum coverage you should take out. Typically, liability coverage starts at $1 million, but can go up to five times that amount if you have a lot of employees or operate in a risky industry.

Who needs professional liability insurance?

Many professions in Canada are required to have a professional insurance policy. These include lawyers, medical professionals and engineers. Any professional who gives advice, even if not obliged to take out such insurance, should also do so. That way, if they deliver work containing incorrect information, or fail to include crucial information, their policy can protect them in the event of legal action.

Is errors and omissions insurance the same as professional liability?

Yes, professional liability insurance and errors and omissions insurance are the same thing. It’s business insurance for professionals who provide services and advice. It protects them in the event of malpractice. If they make mistakes or omit certain information, their insurance is there to protect them. For example, a dissatisfied customer could sue his insurance broker if they withheld information that influenced his decision.

Is professional liability insurance tax deductible?

In Canada, you can deduct mandatory professional liability insurance premiums to maintain your legally recognized professional status. For example, if you’re a lawyer providing legal advice, or a physician, you can deduct your professional liability insurance premiums. On the other hand, if you are not legally obliged to carry professional liability insurance, you will not be able to claim this deduction.

Is professional liability insurance the same as malpractice insurance?

Yes, professional liability insurance is synonymous with malpractice insurance. These terms are commonly used interchangeably to refer to a form of insurance that protects professionals and businesses in the event of claims or litigation related to errors, omissions, negligence or misconduct committed in the course of their professional activities. The main purpose of this insurance is to cover the legal costs associated with defending against such claims, as well as any compensation payable to injured third parties.

When is professional liability insurance required?

Liability insurance is not mandatory for all businesses, but it is required in certain regulated professions, such as the healthcare sector (notably to protect doctors and dentists against medical errors), as well as for consulting professionals such as jurists, lawyers, guidance counsellors and nutritionists. Other professionals such as accountants may also need them to protect against unintentional errors. Also, in certain situations, commercial property owners may require companies to take out liability insurance in order to do business with them. For example, when leasing commercial space, the landlord may require this insurance as a prerequisite.

Compare Professional Liability Insurance

You could save thousands of dollars by getting multiple professional liability insurance quotes and comparing prices.

Get up to three professional liability insurance quotes by answering a few questions