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Oracle RMS Insurance

Professional Liability Insurance (E&O)

Commercial Insurance — Oracle RMS Insurance

Professional Liability Insurance (E&O)

Protect your professional practice from claims of negligence, errors, and omissions in the services you provide.

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Professional liability insurance — also known as errors and omissions (E&O) insurance — protects professionals and service businesses from claims alleging that their advice, services, or failure to perform caused a client financial harm. Unlike commercial general liability, which covers physical injury and property damage, professional liability covers the economic losses clients claim result from your professional mistakes, oversights, or negligence. A single claim can be financially devastating without this coverage.

Who needs this coverage?

Any business or individual that provides professional advice, consulting, design, or specialized services to clients needs professional liability coverage. This includes consultants, engineers, architects, IT professionals, accountants, lawyers, real estate agents, financial advisors, marketing agencies, and healthcare practitioners.

Key coverages

  • Negligence and errors in professional services
  • Omissions and failure to deliver services
  • Breach of professional duty
  • Misrepresentation claims
  • Legal defence costs
  • Settlements and judgments
  • Prior acts coverage (retroactive date)
  • Disciplinary proceedings defence
  • Intellectual property infringement (limited)
  • Worldwide coverage for services rendered in Canada

Frequently Asked Questions

What is the difference between professional liability and general liability?
General liability covers third-party claims for bodily injury and property damage from your operations. Professional liability covers financial losses a client claims result from your professional advice, services, errors, or omissions. Many businesses need both policies.
Is professional liability insurance claims-made or occurrence-based?
Professional liability policies are almost always written on a claims-made basis — the policy in force when the claim is made (not when the error occurred) responds to the loss. This makes maintaining continuous coverage and understanding your retroactive date critical.
What is a retroactive date?
The retroactive date is the earliest date from which your policy will cover claims. Errors or omissions that occurred before your retroactive date are not covered. When switching insurers, it is important to negotiate a retroactive date that matches your prior policy's inception date.
Do I need professional liability if I have a contract limiting my liability?
Contractual liability limitations reduce your exposure but do not eliminate it. Courts may not enforce all limitation clauses, and defending a claim — even one you ultimately win — can cost tens of thousands of dollars in legal fees. Professional liability covers those defence costs.
How much professional liability coverage do I need?
Coverage limits depend on your industry, the size of your contracts, and your clients' requirements. Common limits range from $1 million to $5 million per claim. Some regulated professions have minimum coverage requirements set by their governing body.

Ready to review your coverage?

Speak with a licensed broker at Oracle RMS — by phone, video, or in person. We serve businesses across Canada.*

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* Commercial insurance services available across Canada, excluding Quebec.