What is a Professional Liability Insurance Policy?

Insurance policies come in all shapes and sizes. As a result, remaining on top of the latest ones can sometimes be difficult to do. If you are a professional currently living in Canada, then chances are that you have been offered a professional liability insurance policy in the past. But do you know what it is? And more importantly — do you know why you need it?

In simple terms, a professional liability insurance policy covers you from financial loss associated with someone filing a lawsuit against you. (And yes, this includes any settlement ordered by the court.) As you already know by now, professionals are not immune to being sued. Regardless of whether you are a doctor or a teacher or even a lawyer, a simple mistake or omission could completely ruin your career.

But do you know what is worse than this? When a professional is being wrongfully accused of something they did not do.

You might think it doesn’t happen often, but as we said before, nobody is immune to being sued — you included. No matter how unlikely it sounds, if the threat of being held liable for an error or omission exists within your profession, then you have to be covered under this policy. No exception. Generally speaking, medical professionals, lawyers and consultants are among some of the most sued people in North America.

Of course, not everyone benefits from this type of policy. Before requesting a quote online, we encourage you to discuss with your insurance broker whether you might benefit from a professional liability insurance policy.

Categories:

Professional Liability Insurance/PLI

(Errors and Omissions Insurance)

  • Flawed professional advice and services that may have resulted in financial loss to the customer or client.
  • Protects professional individuals or companies from responsibility of the full cost of defending against a negligence claim and damages awarded in such a civil lawsuit.
    • Professional liability insurance covers the costs of judgments, settlements and legal defense.
    • Damages paid under a professional liability policy are typically financial rather than physical.