Professional Liability Insurance

Professional liability insurance in BC, also called errors and omissions (E&O) insurance, helps protect consultants, service businesses and other professionals when a client alleges that their advice, work or failure to deliver caused a financial loss. BIIS arranges coverage for businesses in Vancouver and throughout British Columbia, as well as Alberta and Ontario.

A claim can be expensive even when the allegation is groundless. The right policy may cover eligible legal defence costs, settlements and court awards, subject to the policy terms, limits, deductible and exclusions.

Professional liability insurance at a glance

• Protection for eligible claims alleging negligence, errors, omissions or failure to deliver professional services
• Legal defence for covered claims, including allegations that may be unfounded
• Coverage limits and deductibles selected to suit your contracts, services and risk
• Options may be available for media liability, cyber liability, commercial general liability, property and business interruption
• Access to Lloyd’s of London and Canadian domestic insurance markets through BIIS

What does professional liability insurance cover?

Coverage depends on the insurer and policy wording. In general, professional liability insurance may respond when a client claims that your professional service, advice or omission caused a financial loss. Common allegations include:

• Professional negligence or an error in your work
• An omission, missed deadline or failure to deliver a promised service
• Misrepresentation or inaccurate professional advice
• Breach of professional duty
• Defamation, libel, slander or intellectual-property allegations when included in the policy
• Legal defence costs for a covered claim, even when the allegation is groundless

Professional liability is not limited to allegations of physical injury. A client may allege financial, emotional, reputational or other harm arising from professional services. BIIS will review your operations and explain which risks a proposed policy does and does not cover.

Who needs professional liability insurance in BC?

If you provide advice, designs, analysis, consulting, creative work or another specialized service, a client may hold you responsible for the result. A contract, landlord, professional association or regulator may also require E&O coverage.

Consulting and technology

• Business and management consultants
• IT consultants and software firms
• Web developers and technology service providers

Media and creative services

• Media and marketing firms
• Graphic designers and advertising agencies
• Printers, publishers and public-relations professionals

Professional services

• Bookkeepers and financial service providers
• Health and wellness professionals
• Other licensed and non-licensed service businesses

This is not a complete eligibility list. Contact BIIS if your profession is not shown. We can confirm whether a suitable market is available for your work.

Professional liability claim examples

A consultant’s recommendation is challenged

A Vancouver business consultant recommends a process change. The client later alleges that the advice caused lost revenue and files a claim. A professional liability policy may respond to eligible defence costs and damages.

A designer is accused of an omission

A graphic designer delivers campaign materials, but the client alleges that a required item was omitted and delayed the launch. The client seeks compensation for the resulting financial loss.

A service provider misses a deadline

A professional service firm misses a contract deadline. The customer alleges breach of professional duty and claims additional costs. Coverage depends on the facts, the policy wording and any applicable exclusions.

What is not usually covered?

Professional liability insurance is not a substitute for every type of business insurance. Policies commonly exclude or limit matters such as intentional or criminal acts, known claims, unpaid fees, contractual guarantees, employment disputes, bodily injury or physical property damage unrelated to your professional service, and events reported outside the required period. Cyber incidents may also require separate cyber liability coverage.

Every policy is different. BIIS can review the wording, retroactive date, reporting requirements, sublimits and exclusions before you decide.

Professional liability vs. commercial general liability

Coverage	Professional liability (E&O)	Commercial general liability (CGL)
Primary risk	Financial loss arising from professional advice or services	Third-party bodily injury, property damage and certain personal or advertising injuries
Example	A client alleges that your advice caused a financial loss	A visitor slips at your office or your operations damage a customer’s property
Policy trigger	Often claims-made and reported	Often occurrence-based

Many professional businesses need both forms of protection. Learn more about commercial general liability insurance, or ask BIIS to review a contract or lease requirement.

How claims-made coverage works

Professional liability insurance is commonly written on a claims-made and reported basis. In simple terms, the policy generally needs to be active when the claim is first made and reported. The alleged error may have happened earlier, but it must fall after any applicable retroactive date.

Continuous coverage matters. If you stop working, sell the business or retire, consider an extended reporting period, sometimes called tail coverage. It may allow you to report eligible future claims arising from work completed before the policy ended. The available period and conditions vary by insurer.

How much does professional liability insurance cost?

There is no single premium for every professional. Insurers assess the services you provide, annual revenue, years of experience, client types, contract values, claims history, location, desired limit, deductible and any optional coverage. A lower-risk sole proprietor will not be priced the same as a larger firm handling high-value contracts.

For an accurate professional liability insurance quote in BC, BIIS will gather the relevant details and approach suitable markets. Limits up to $10 million may be available for some risks, subject to underwriting.

Why choose BIIS for professional liability insurance?

• Broker choice: access to Lloyd’s of London and Canadian domestic markets
• Local service: support for clients in Vancouver and across BC, plus Alberta and Ontario
• Practical review: help comparing limits, deductibles, exclusions and claims-made provisions
• Broader protection: options may include CGL, cyber liability, commercial property and business interruption
• Independent advice: BIIS offices are members of the InsureBC Group, established in 1988

How to request a quote

1. Tell us about your work. Share your services, revenue, experience, location and coverage requirements.
2. Compare suitable options. BIIS will review available markets and explain key differences.
3. Select your coverage. Choose a limit, deductible and optional coverage that fit your needs.

Frequently asked questions

Is professional liability insurance mandatory in BC?

It is not mandatory for every business. However, a regulator, professional association, client contract or landlord may require it. Even when it is optional, the coverage can protect a service business from the cost of defending an allegation.

Is E&O insurance the same as professional liability insurance?

The terms are often used interchangeably. “Malpractice insurance” is another related term used for certain professions. The policy wording, rather than the name alone, determines the actual coverage.

Does professional liability cover past work?

It may cover eligible past work performed after the policy’s retroactive date, provided the claim is first made and reported in accordance with the policy. Known circumstances and prior claims are generally treated differently.

How much coverage do I need?

The right limit depends on your contracts, client size, services and potential loss. Many contracts specify a minimum limit. BIIS can help review the requirement and discuss options; limits up to $10 million may be available for some businesses.

Can I combine E&O with other business insurance?

Yes. Depending on your business, you may be able to combine professional liability with CGL, cyber liability, commercial property, equipment and business interruption coverage.

Related professional coverage

• Bookkeeper professional liability insurance
• Life insurance agent professional liability insurance
• BC optometrist professional liability insurance
• Umbrella liability insurance