Professional Liability Insurance

Every day, your clients or patients rely on your advice and expertise. Should you make a mistake while providing legal advice or conducting a surgical operation that results in damages or a financial loss, you could get sued.

Professional Liability Insurance in Alberta provides coverage for individuals and businesses offering professional services. If you work in an industry that provides services or advice to individuals based on your specific credentials—such as your education, experience or professional designation—then you should have Professional Liability Insurance in Alberta.

Also known as Errors and Omissions Insurance, this business insurance policy covers damages that are not insured by a Commercial General Liability Insurance policy. General Liability covers physical risks—like bodily injury or property damage—but it does not cover claims arising from professional services. Contrarily, Professional Liability Insurance in Alberta covers risks related to errors and omissions in the services you or your business provides—that do not result in bodily injury or property damage.

Alberta Professional Liability Insurance policies can vary based on your industry and needs. At Krywolt Insurance, we customize your insurance coverage for the specific requirements of your business.

Professional Liability Insurance in Calgary is a must if you or your company provides services and advice to your clients. If your company is sued, your Krywolt Professional Liability Insurance in Calgary covers:

Alleged or Actual Negligence

Having coverage for Professional Liability Insurance in Calgary is strongly recommended to protect your business from claims alleging negligence from your professional services. These claims may include:

• Failing in your duty of care: Duty of care is a legal duty to take reasonable care to not bring harm—physical, mental or emotional—to others through your actions or inactions. For example, a teacher has a reasonable duty of care to students under his supervision. Likewise, a taxi driver has a reasonable duty of care for her passengers, other road users and pedestrians.
• Giving incorrect advice: Giving incorrect advice that causes your client damages can be grounds for a suit. For instance, if a financial planner gave a client incorrect investment advice that caused a financial loss, or if a lawyer gave a client incorrect legal advice that resulted in loss of property during a divorce settlement.
• Making mistakes: While most professionals pride themselves on their expertise, mistakes do happen. Depending on the industry, these mistakes can have serious consequences. For example, if a tattoo artist makes a mistake while inking a customer and the customer has to pay to have the tattoo removed, this could result in a suit.

Defense Costs

Your Professional Liability Insurance in Calgary will cover the costs associated with lawyers to defend you—even if the lawsuit is groundless. Unfortunately, even if the suit against you holds no weight in court, legal proceedings are expensive, and you or your company could incur a serious financial loss undergoing legal proceedings. An Alberta Professional Liability Insurance policy will help cover you from this financial deficit.

Legal costs that may be covered by your Professional Liability Insurance in Calgary could include:

• Lawyer’s fees
• Administrative expenses
• Court fees
• Expert Witnesses
• Settlement costs
• Mediation expenses
• Court judgements

Your Error and Omissions Insurance policy may even cover supplemental expenses you incur as a result of attending an arbitration proceeding trial in the defense of a covered claim.

Personal Injury

Professional Liability Insurance in Calgary may protect you against personal injury claims that arise while rendering your professional services. For example, your insurance policy may protect you from alleged defamation, including:

• Claims of libel: Libel is an untrue defamatory statement that has been made in writing. For instance, if a journalist or biographer made the mistake of writing unverified facts that end up being untrue—and that the subject feels negatively impacts his or her good name—it could result in a lawsuit.
• Claims of slander: Slander is an untrue, defamatory statement that is spoken orally. For example, if a lawyer in a public case insinuates untrue information during a press conference, the client may have grounds for a suit. Likewise, if a reporter asks a defamatory question during an interview on TV, he or she may also be in legal trouble.

Copyright Infringement

Having Professional Liability Insurance in Calgary may also protect against copyright infringement. This type of insurance coverage is particularly helpful for individuals working in the fields of media, marketing or technology. Should an individual or a company wrongfully use the work of another person, this can infringe on the copyright of that work.

For example, if a magazine uses the work of a photographer without permission, this infringes on the copyright of the photo. Likewise, selling/distributing or posting work online without the owner’s permission could result in a suit.

Worldwide Errors and Omissions Insurance Coverage

At Krywolt Insurance, we believe your insurance should follow you wherever your business takes you. Perhaps you work as a consultant and your expertise is hired by companies across the globe. Or, maybe you’re a freelancer with multiple clients all over the world. It’s best practice to have all your bases covered and ensure your Professional Liability Insurance policy covers you no matter where you are providing your professional services, and not just in Alberta. This Professional Liability Insurance policy coverage will ensure that whether you are in Calgary, London, or Hong Kong, you are protected with the same coverage you receive here in Alberta.

Temporary Staff and Independent Contractors

As a business owner, you hire employees to provide the professional services offered by your company. Krywolt covers claims arising from business-related services completed by your employees, temporary staff and independent contractors. While you may not be personally at fault for a claim of negligence or error, one of your staff members may have made a mistake. This mistake could be the responsibility of your company, and with the right coverage from your Professional Liability Insurance, your Calgary business can be protected from these financial consequences.

For instance, an architecture firm may have a number of senior, mid-level and junior architects, project managers and administrative staff in its employ. It may also hire independent construction and interior design contractors to help out with a job, and may need to hire temporary architects or administrative staff if a full-time employee is on leave. If a mistake was made during construction—like delays in construction or faulty cost estimates—the responsibility is on the firm, not the contractors or employees. Without Professional Liability Insurance, a Calgary business owner could face significant financial liabilities and litigation if a mistake made by their employees or contractors leads to costly damages or delays.

Claims Arising from Services Provided in the Past

Did you know there is no statute of limitations for claims, permitting there is new information that has just come to light? For instance, a construction company may have renovated a roof four years ago. However, if it only comes to light now that the wood used was not treated and has resulted in rot that requires additional repair costs, the construction company could face significant legal trouble.

If you’ve been practicing as a professional service provider for a long time, then you may have made a mistake in the past that may not be realized until weeks, months or years down the road. It’s better to be on the safe side by having Professional Liability Insurance in Calgary.

Claims and Damages

If you lose a large claim, it can affect the financial stability of your business. Rather than have to face the potentially devastating financial impact of losing a negligence, error or omission claim against you, your Krywolt policy can cover claims for monetary damages and non-monetary relief. It’s better to be safe than sorry. Avoid having your consulting agency, law firm or tattoo shop crippled because you lost a claim against you with Professional Liability Insurance in Calgary.

With Krywolt Insurance in your corner, you don’t have to worry about incurring losses from a suit against you due to error, negligence or omission. We will immediately defend you and, if necessary, appoint a lawyer to handle your claim. Additionally, our Alberta Professional Liability Insurance policy will cover any damages you may incur up to your policy limit.

Get a fast, free quote now or call us to get started today—and feel confident knowing Krywolt Insurance is behind your business with Professional Liability Insurance in Calgary, AB.

Who Needs Professional Liability Insurance/Do I Need Professional Liability Insurance in Calgary?

You need to have Professional Liability Insurance in Alberta if you:

• Provide services or advice based on your education, experience and/or professional designation.
• Are physically touching or conducting operations on a person, such as a barber or doctor.
• Have any exposure to a claim for damages that do not result from property damage or bodily injury. For instance, claims seeking compensation for loss of income, project delays, trademark infringement, or other financial losses not related to property damage or bodily injury.

This is because this type of insurance provides coverage if a client alleges that your services or advice caused them harm, allowing you to cover legal costs and potential settlement fees, while at the same time ensuring your clients are covered in the event an error or omission occurs.

For example, some industries that should consider having Professional Liability Insurance in Calgary include:

• IT and computer contractors
• Engineering contractors
• Construction contractors
• Architects
• Consultants
• New media
• Social services
• Finance professionals
• Legal professionals
• Photographers
• Writers
• Medical workers and health professionals
• Forensic experts
• Psychologists and counselors

What is a Professional Liability Carrier?

A professional liability carrier is an insurance company licensed to sell Professional Liability Insurance in Calgary and other jurisdictions. Typically, a professional liability carrier is not licensed to discuss and conduct business directly with the public. However, they have contracts with multiple insurance brokers, who complete applications and review coverage needs that are submitted to the carrier for review.

The professional liability carrier would then decide whether or not to provide insurance based on the information provided. The professional liability carrier also decides the cost of insurance and sets the terms and conditions for Professional Liability Insurance for Calgary professionals.

Is Professional Liability Insurance in Calgary the Same as General Liability?

No, Professional Liability Insurance in Calgary is not the same as General Liability Insurance. However, the two policies can work together to cover different risks.

General Liability Insurance is meant to cover bodily injury and property damage as a result of your operations. General Liability excludes claims arising from professional services—this is called the “professional services exclusion.”

Contrarily, a Professional Liability policy will not cover bodily injury or property damage. However, the policy may extend to all other financial losses related to the rendering of a professional service.

What is Not Covered by Professional Liability Insurance in Calgary?

Your Professional Liability Insurance in Calgary may have any number of specific exclusions included in its wording. Typically, a Professional Liability Policy will not cover losses related to property damage or bodily injury—unless those damages result directly from the failure to render a professional service.

An example of a claim not covered by an Alberta Professional Liability Insurance policy would be bodily injury due to a slip and fall in a doctor’s office. However, bodily injury sustained because of a doctor making a mistake during surgery would be covered under your policy for Professional Liability Insurance in Calgary.

What is the Difference Between E&O, Malpractice, and Professional Liability Insurance in Alberta?

Professional Liability Insurance, Errors and Omission Liability Insurance, and Malpractice Insurance all refer to the same type of insurance. Each term describes insurance meant to cover financial losses incurred by a client or patient as a result of:

• A failure to complete a professional service correctly. This is referred to as the ‘error.’
• A failure to complete a service that should have been rendered or give advice that should have been presented. This is referred to as the ‘omission.’

These different terms for Professional Liability Insurance for Calgary professionals can be interchanged and often are used to indicate different industries. For example, insurance professionals may use:

• Errors and Omission Liability Insurance to describe a business giving advice or doing design work, such as engineers, architects or IT professionals.
• Professional Liability Insurance to describe professionals with services that are not driven by advice, like tattoo artists or barbers.
• Malpractice Insurance to indicate the medical or legal industry.

Your Krywolt Insurance broker will be able to explain in detail how each type of insurance could protect you as a working professional and help you make an informed decision and craft the best policy coverage when you inquire about Errors and Commission, Malpractice, and Professional Liability Insurance in Calgary.

What is the Best Type of Professional Liability Insurance in Calgary?

The best Professional Liability Insurance in Calgary is a policy that covers operations specifically related to your service and/or business. In fact, the operations disclosed on an Alberta Professional Liability Insurance application will directly affect how the policy will best cover you.

Additionally, the best policy is one where the application has been fully completed and describes in detail your full operations and how they may cause a financial loss to someone else. This ensures you have comprehensive protection when it comes to Professional Liability Insurance in Calgary or any other jurisdictions you may operate out of.

How Much Does it Cost to Get Professional Liability Insurance in Calgary?

Professional Liability Insurance in Calgary can cost less than $1,000 per year, depending on your business operations and volume of annual revenue. So having Professional Liability Insurance in Calgary for a high-risk business or a large volume business can be in excess of $50,000 per year.

It's important to note that the cost of your Professional Liability Insurance in Calgary can vary depending on several factors, such as the industry you operate in, the level of risk associated with your business, past claims history, and the coverage limits you choose. It's always a good idea to consult with an insurance broker to get a more accurate quote tailored to your specific needs when you're seeking Professional Liability Insurance in Calgary or other jurisdictions.

What's the Average Cost of Professional Liability Insurance in Calgary?

The average cost of an Alberta Professional Liability Insurance policy for a small business is around $1,500 per year. But, as stated above, the overall cost of your Insurance policy will vary based on the industry you are in and your business operations.

Where Can I Get Professional Liability Insurance in Calgary?

You can get Professional Liability Insurance in Calgary by contacting a licensed insurance broker that specializes in business insurance—and that specifically specializes in Professional Liability Insurance for Calgary professionals.

While any licensed insurance broker can sell Professional Liability Insurance in Calgary, you should consult with a broker who has the knowledge and expertise to present your application to multiple insurance carriers. This will ensure you receive multiple quotes and coverage options. Krywolt Insurance Brokers specializes in Professional Liability Insurance in Calgary.

Do Some Clients Require You to Carry Coverage for Professional Liability Insurance in Alberta?

Increasingly, clients and contracts require Professional Liability Insurance in Alberta. When providing a professional service to a client in the province, it’s common for the client to require Professional Liability Insurance in Alberta—especially if there’s a risk of financial loss from the service being provided.

For example, oil and gas contracts often require Alberta Professional Liability Insurance for drilling consultants, engineers and other occupations. Likewise, IT contracts also often require evidence of Professional Liability Insurance in Alberta before any work can be completed on a large network or computer system. This ensures that the professional is covered should they need it and gives the client peace of mind knowing that the professionals they hire are covered in case of any errors or omissions.

When is Having Professional Liability Insurance in Calgary Important?

Professional Liability Insurance in Calgary and other jurisdictions is important when business operations involve any form of professional service or advice. It’s important to have Professional Liability Insurance in Calgary if your services include the potential to make a mistake that could result in a financial loss for your client. For example, let’s say you are a financial advisor in Calgary, and you mistakenly provide incorrect investment advice to a client, causing them to lose a significant amount of money, and they decide to sue you because of this. In this scenario, having Professional Liability Insurance in Calgary would protect you from potential lawsuits and cover the financial damages incurred by your client.

It’s also important to have Professional Liability Insurance in Calgary if you’re performing services directly on a person or animal that may result in injury. This would include barbers, tattoo artists, surgeons or veterinarians. An example would be if you are a tattoo artist who messed up on a tattoo, and the customer sued you for damages. Having Professional Liability Insurance in Calgary would help cover the costs of legal fees and potential settlements in such situations.