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Professional Liability Insurance
Professional liability insurance protects you if a client claims your advice or service caused them harm—even if you've done nothing wrong. Get a quote and buy coverage for your business in under five minutes, entirely online.
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APOLLO and Gallagher Partner to Protect Your Business
We've partnered with Gallagher, one of Canada's leading insurance brokers, to provide insurance designed for businesses and business professionals. Get professional liability, general liability, and/or contents insurance designed specifically for your profession.
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3 Kinds of Risks That Professional Liability Insurance Protects You From
Negligence
If a client claims your work was careless, incomplete, or caused them harm, even if you followed best practices, professional liability insurance covers legal defence costs and any damages awarded.
Malpractice
Professionals in regulated industries can face malpractice claims if their actions fall short of expected standards. This coverage helps protect your reputation and your finances if you’re accused of doing more harm than good.
Misrepresentation
If a client believes you gave inaccurate advice or overstated your qualifications or results, you could face a lawsuit. Professional liability insurance helps defend you and cover potential settlements.
Professionals Offer More Than Just Advice. They Offer Trust.
As a professional, your clients rely on your expertise to make important decisions, sometimes involving their health, finances, safety, or business success.
Whether you’re an architect, consultant, accountant, or designer, your clients don’t just expect results. They expect you to get it right.
A small mistake, miscommunication, or oversight can quickly spiral into a costly legal battle, even if you’ve done nothing wrong. One unhappy client, one unexpected outcome, or one misunderstanding could result in a lawsuit that puts your business and reputation at risk.
That’s where professional liability insurance comes in.
Whether you work for yourself, operate a small business, or run a growing team, you need coverage that protects you from the unique risks of giving professional advice or services.
Even if you’re confident in your work, legal defence alone can cost thousands of dollars and months of stress. Insurance gives you the protection and peace of mind to keep doing what you do best.
You’re not just a specialist, you’re a business owner.
Your knowledge, training, and professional designation mean you’re held to a higher standard. Clients expect accountability, and the law does too. Professional liability insurance helps ensure one claim doesn’t undo everything you’ve built.
FAQs About Professional Liability Insurance
Do I need professional liability insurance?
Any professional who provides advice, expertise, or services should consider this coverage, including consultants, designers, engineers, accountants, and IT professionals.
It provides coverage for many of the legal claims that are not under the umbrella of a General Liability Insurance policy. In the event of a lawsuit, PLI pays for the legal fees, damages awarded against you, and any other associated costs, such as supplementary expenses involved in your defense and lost wages if you need to take time off work to appear in court. In fact, these extra expenses are covered on top of whatever limit of insurance you have in place.
What does professional liability cover?
It covers the inherent daily risks involved in your business, including legal costs and damages if a client claims your service or advice caused them harm, such as lawsuits related to negligence, errors, omissions, or misrepresentation.
Clients consult with professionals for their expertise, and they have a legal duty to act in their clients’ best interest, performing their duties to a certain standard of care. Depending on your profession, it may be a regulatory requirement to have a PLI policy before you can conduct business; in some provinces, it’s required by law for certain kinds of professional practices. Because each type of professional takes on different inherent daily risks, we offer customized policies with coverage that’s tailored to your specific profession to insure your most likely and frequent exposure
Am I able to customize my policy?
Yes. You can adjust your coverage limits or add endorsements based on your needs.
We also have tailored products depending on your industry. While healthcare professionals would purchase Medical Malpractice Insurance, the professional liability insurance for advice- and counsel-giving professionals is called Errors and Omissions Insurance (E&O Insurance). In any case, we make it easy to figure out what coverage you need and get insured quickly, conveniently, and affordably.
Is professional liability insurance the same as errors and omissions (E&O)?
Yes. The terms are often used interchangeably and both refer to coverage that protects against claims of professional mistakes or failures to deliver a service.
How is professional liability insurance different from general liability insurance?
Professional liability covers claims related to your services or advice. General liability covers physical risks — like property damage or bodily injury on your premises.
Will my policy cover me if the claim is groundless?
Yes. Even if a claim has no merit, your insurance can cover legal defence costs so you’re not stuck footing the bill for a lawsuit you didn’t deserve.
What happens if I cancel my policy and get sued later?
Professional liability is typically a claims-made policy, meaning it only covers claims made while the policy is active. If you cancel, future claims won’t be covered.
Do I need insurance if I work under contract or freelance?
Yes. Many clients will ask for a Certificate of Insurance, and being insured protects you from legal risks, whether you're full-time, part-time, or freelance.
How quickly can I get insured with APOLLO?
In most cases, you can get a quote and purchase a policy online in under five minutes, with documents delivered to your inbox instantly.
How Much Does Professional Liability Insurance Cost in Canada?
Short answer? Probably less than you think, and definitely less than the cost of defending a lawsuit on your own.
The cost of professional liability insurance can vary widely depending on your profession, coverage limits, business size, and other factors. Some professionals pay more, some pay less. It all comes down to your unique risk profile.
With APOLLO's online platform, getting a personalized quote takes less than five minutes, and you’ll instantly see coverage options tailored to your business.
Just like your professional services, your insurance should be tailored, not one-size-fits-all.
Here's what impacts the cost of your policy:
Your Business Revenue
Higher earnings can mean more responsibility and more exposure.
That may increase your premium slightly, but it also reflects the scale of your work.
Number of Employees
Solo operators typically pay less.
If you manage a team or subcontract work, your rate will adjust to reflect that expanded risk.
Previous Insurance Claims
A clean claims history helps keep your costs low.
If you’ve had claims in the past, your premium might rise, but coverage is still accessible and affordable.
Type of Service You Provide
Some services carry more liability than others.
For example, offering strategic financial advice comes with different risks than event planning or marketing consulting.
Data Sets Collected By Our Underwriters
We use real industry data, not ballpark guesses.
Our underwriting process analyzes risk trends and benchmarks to ensure your pricing is accurate, personalized, and fair.
Insurance Is a Business Essential, Not Just a Backup Plan
Professional Liability Insurance does more than cover you when something goes wrong. It helps you build trust, win better work, and grow with confidence. Here’s what it makes possible:
Qualify for more contracts - Bigger clients come with bigger requirements. Many corporate clients and government agencies require proof of insurance before they’ll even consider working with you.
Show you're legitimate - A Certificate of Insurance instantly shows that you’re credible, professional, and prepared. It gives clients peace of mind and gives you an edge.
Say yes to bigger opportunities - Thinking about taking on larger projects, collaborating with other firms, or working in new markets? Insurance can help you meet requirements and open new doors.
Prepare for growth - Hiring help or expanding your services? Professional liability insurance keeps your foundation strong, so you can scale without second-guessing.
Stay protected when the unexpected happens - Even when you do everything right, misunderstandings and mistakes happen. Insurance covers legal fees, defence costs, and potential settlements, so one unhappy client doesn’t put your entire business at risk.
What Clients & Contracts May Require from Professionals
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Certificate of Insurance (COI)
Many clients, especially larger businesses or public sector organizations, ask for proof that you're covered. A COI confirms you have active professional liability insurance, and with APOLLO, you’ll get yours instantly after buying online.
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Specific Coverage Limits
Some contracts require $1M or $2M in professional liability coverage or more, depending on the project’s scope. APOLLO lets you choose the limit that fits your needs (and meets client expectations).
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Contractual Endorsements
You may need to add contract-specific endorsements or clauses to satisfy procurement teams. APOLLO’s digital platform makes it easy to customize your policy and stay compliant without delays.
PRO TIP: Check your requirements early.
Knowing the exact coverage and endorsements needed can save you time and help you get the deal faster with APOLLO’s instant documents.
Liability Quiz
Am I liable if a client says my advice caused them financial loss, even if I followed the brief?
Yes. If a client believes your service or recommendation caused harm, they can still file a claim, even if you did everything by the book. Professional liability insurance helps cover legal fees and damages.
Do I still need insurance if I’m just freelancing part-time?
Definitely. Whether you're full-time or side-hustling, if you're being paid for advice or a deliverable, you’re exposed to the same risks.
Could I still be held liable if I work remotely?
Yes. Virtual work doesn’t eliminate liability. If a client claims your digital strategy, report, or design caused harm, you can still be sued.
Can I be sued for a mistake made by someone I subcontracted?
Possibly. If you're the lead contractor or consultant, you could be held responsible for work completed under your direction, even if you didn’t do it yourself.
The Cost of Not Having Professional Liability Insurance
Scenario | Out-of-Pocket Cost (Without Insurance) | Covered By Insurance? |
|---|---|---|
A client claims your advice caused financial loss and sues for damages. | $10,000–$100,000+ (legal fees + settlement) | ✔ Professional Liability |
A client accuses you of misrepresenting your qualifications or services in a project proposal. | $5,000–$25,000+ (legal defence costs) | ✔ Professional Liability |
You’re named in a lawsuit after a project goes off track, even though you followed the brief. | $15,000–$50,000+ | ✔ Professional Liability |
You’re forced to take time off work to deal with a legal dispute, losing income in the process. | Varies — potentially thousands | ✔ Loss of income (via coverage for legal time) |
You lose a major contract because you couldn’t provide proof of insurance. | $5,000–$20,000+ (lost revenue) | ✔ Certificate of Insurance ✔ Professional Credibility |
Top 5 Mistakes Professionals Make (And How to Avoid Them)
1. Assuming your client’s contract protects you
It usually doesn’t. Most contracts protect the client, not the service provider. Without your own insurance, you’re personally on the hook.
2. Waiting to get insured until after you land the job
Many opportunities require proof of insurance before you start. With APOLLO, you can get covered in minutes and never miss out on work because you weren’t ready.
3. Ignoring subcontractor risk
If you hire others to help with projects, their mistakes could still land you in legal trouble. Make sure your policy accounts for team members or independent contractors.
4. Overlooking contract-specific requirements
Some clients need additional endorsements or higher coverage limits. APOLLO lets you customize your policy fast, with no long delays or back-and-forth.
5. Thinking small jobs don’t carry real risk
Even a small gig can lead to big legal costs. A single misunderstanding, missed detail, or miscommunication can result in a claim. Professional liability insurance helps keep it from becoming a financial disaster.