Why Get Professional Liability Insurance?
Professional Liability is an essential coverage for any business providing professional services. It protects your business from claims arising from acts of professional negligence.
Professional Liability Claims Examples
Professional Negligence
Incident: As an architect you are hired to design the buildings for a residential housing project. Once built the owner alleges that the original construction and design were faulty and sues for $750,000.
Result: Eventually the owner and architect firms reach a settlement and your professional liability policy provides coverage for the settlement and legal fees.
Malpractice
Incident: As a massage therapist you are hired to provide your professional services to a customer. The customer returns the next day claiming your massage caused him injury and demands you pay $100,000 in damages.
Result: Your professional liability policy pays for the legal fees and reaches a settlement with the customer.
Financial Loss
Incident: You are hired as an accountant for a wealthy investor. due to some mix-up you failed to file a tax return on time resulting in penalties and interest fees. Your client brings a suit against you for any resulting fees and additional costs to hire another accounting to fix the error costing $300,000.
Result: Legal fees and damages associated with the case are covered under your professional liability policy.
Professional Liability Insurance, Explained
What is professional liability insurance?
Professional liability insurance provides coverage for third party claims resulting from professional negligence. It covers compensatory damages and legal defense costs.
Who needs professional liability insurance?
- Any businesses that provide a professional service to their customers. This can include professional advice or medical services
- Architects, Engineers, Personal Trainer’s, Massage Therapists, Accountants, Consultants, Lawyers, etc…
What is not covered by professional liability insurance?
- Losses arising before the retroactive and/or policy effective dates
- intentional criminal acts
- auto liability
- claims arising from bodily injury or property damage that are not associated with the professional services provided.
Full List of Industry Insurance Types
Why Choose Pacific Insurance?
Our staff are trained Registered Insurance Brokers of Ontario (RIBO) which is the self-regulatory body for insurance brokers in Ontario.
We have been regularly featured in the media as insurance experts and asked to speak at events like the ‘CRV Radio International’.
1 on 1 Service
Speak directly with an expert instead of dealing with a faceless call centre.
40+ Years in Business
We provide the results of a large agency while giving you the agility and service level of a boutique agency
Fluent in Many Languages
Speak to our brokers in English, Cantonese, Mandarin, French, Korean, or Hebrew.
