The short answer
Professional liability insurance, also called errors and omissions or malpractice cover, responds when a client claims your advice, design or service was wrong or negligent and they lost money. It pays for defence and for a settlement or judgment, within limits. Most policies are written on a claims-made basis. A licensed broker places it with insurers who understand your profession.
- Consultants, designers, engineers, architects, accountants and IT professionals
- Health and wellness practitioners, many of whom must meet a regulator or college requirement
- Real estate, marketing, staffing and financial services businesses
- Sole practitioners and small firms whose contracts now ask for evidence of cover
- Professionals leaving an employer to work on their own
1 licensed broker in the network handles this. In Alberta, Canada, a request for professional liability insurance can be offered to up to three of them, chosen because they are licensed for this line and place. They are test brokers while we are in demo.
See the brokers → Outside Alberta, Canada you can prepare and save a request today; sending opens place by place. Brokers answer with their own quotes. Broker.insure does not quote, advise or take commission.
01 / What it covers
The parts worth understanding
Defence costs
The cost of lawyers and experts when a claim is made, even when it turns out to be unfounded. Ask whether defence costs are inside the limit, which reduces what is left to pay a settlement, or outside it.
Claims-made trigger
Most professional policies respond to a claim first made and reported while the policy is in force, not to when the work was done. Moving insurers or ending the policy can leave a gap unless it is handled.
Retroactive date
The date from which past work is covered. If a new policy sets the retroactive date at the start, earlier work may not be protected. Keep the original date when you change insurers where possible.
Extended reporting period
A window after a policy ends in which a claim for earlier work can still be reported. Ask what it costs, how long it lasts and whether it is available if you retire.
Contractual liability
Many clients' contracts ask you to take on responsibilities beyond ordinary negligence. Policies may exclude liability assumed under a contract, so show the broker the clauses.
Related protections
Cover for lost documents, breach of confidentiality, regulatory investigations or disciplinary hearings is sometimes included and sometimes added. Ask what is part of the base policy for your profession.
02 / Get ready
Bring this, and expect these questions
Gather
- A plain description of what you do, the services you offer and any you have stopped offering
- Your qualifications, professional body or college membership and registration number where one applies
- Annual revenue from professional services, and the number of staff and contractors
- Sample client contracts and engagement letters, especially clauses on limits, indemnities and warranties
- Your current policy, the retroactive date and any claims or circumstances reported to date
- Details of any complaint, demand letter or dispute, even if it did not become a claim
- Any work done for clients in the United States or elsewhere outside Canada
- How you check your work, such as peer review, written sign-off or a documented process
- Requirements from a regulator, landlord, client or lender that specify the type or level of cover
A broker will ask
- What services do you actually provide, and what do you avoid doing?
- Do you advise, design, supervise or take responsibility for outcomes?
- Have you or your firm had a claim, a complaint or a demand letter?
- What contract terms do you agree to, and do you promise particular results to clients?
- Who works for you, as employees or subcontractors, and do they carry their own cover?
- Is there a regulator or professional body that sets a minimum cover or a required wording?
- Do you work for clients outside Canada, or on projects in the United States?
- Is this a new policy, a renewal or a change of insurer, and what is the retroactive date?
Not sure of an answer? Leave it. "Not known yet" is a fine answer, and a broker will help you fill it in.
03 / Build your request
Answer a few questions. Get your own list.
Pick what fits. Your answers shape the list beside them, and they are saved to your request as plain facts a broker can read. "Not sure yet" is always a fine answer.
04 / Three situations
See which one sounds like yours
A physiotherapist opening her own clinic
After eight years as an employee, a physiotherapist in Moncton is leaving to open a two-treatment-room clinic with one part-time assistant. Her college requires her to hold professional liability, and she has always been covered under her employer's policy.
First steps. Check her college's requirements for the form and level of cover, and bring her registration, the clinic plan and a note of the services she will offer. Ask the broker how past work is treated, how an assistant is covered, and how general liability for the premises sits beside the professional policy.
A web design agency with a missed deadline
A five-person design agency built an online booking system for a restaurant group. A launch slipped, the system lost reservations and the client is threatening to withhold payment and claim for lost business. The agency's contract included a clause promising the system would work without interruption.
First steps. Do not admit fault or settle anything in writing, and tell the broker and the insurer about the dispute as soon as possible. Gather the contract, the project timeline and the emails, and ask how the policy treats the contract promise and any claim already made before the policy period.
An engineer retiring after thirty years
A structural engineer is closing her consulting firm and will stop taking work at the end of the year. She has designed buildings that remain in use, and her policy is claims-made.
First steps. Contact the broker well before the policy ends and ask about the extended reporting period and how long it can run. Collect a list of past projects and any circumstances that could lead to a claim, and ask whether any arrangement is needed after she stops working.
05 / Words you will hear
The jargon, in plain words
- Errors and omissions
- Another name for professional liability. The phrase signals protection when a mistake or a missed step in your work leaves a client out of pocket.
- Claims-made policy
- A policy that responds only if the claim is first raised, and reported to the insurer, while the policy is in force. When the work happened matters less than when the claim arrives.
- Retroactive date
- The earliest date from which past work is protected. Work done before it is left out, so the date should travel with you when you switch insurers.
- Tail cover
- An extra window bought when a claims-made policy ends, so late claims about earlier work can still be reported. Retirees and closing firms often ask about it.
- Circumstance notice
- A report to the insurer about a situation that might become a claim, such as a demand letter. Filing it in time can keep the later claim under the current policy.
06 / Common mistakes
What trips people up
- Assuming a general liability policy will respond to a claim that your advice or design was wrong.
- Changing insurers and losing the retroactive date, so earlier work is no longer protected.
- Cancelling the policy at retirement without arranging a period in which late claims can still be reported.
- Signing a contract that promises results or takes on unusual liability without showing it to the broker.
- Failing to report a complaint or a demand letter because it has not become a lawsuit yet.
- Describing the work narrowly on the application and then offering wider services later.
Ready when you are
Turn this into one clear request.
Save it, add what you know, and choose when to send it. A licensed broker who handles professional liability insurance takes it from there.
07 / Questions people ask
Straight answers
What is professional liability insurance?
It protects you if a client claims your professional advice, design or service was negligent or wrong and they suffered a financial loss. It generally pays for defence and, within limits, any settlement or judgment. Names vary by profession, including errors and omissions and malpractice cover. A licensed broker can match the wording to your work.
What is the difference between professional liability and general liability?
General liability covers bodily injury and property damage claims, such as a visitor slipping in your office. Professional liability covers financial loss caused by your advice or services. Most professionals need both, and each policy typically excludes what the other is designed to cover. A broker can show how they fit together.
What does claims-made mean?
A claims-made policy responds to a claim that is first made against you and reported to the insurer during the policy period, rather than to the date the work was done. Keeping the policy continuous, protecting the retroactive date and arranging an extended reporting period when it ends all matter. Ask the broker to explain how it works in your case.
Do I need professional liability insurance?
Some regulators and professional bodies require it, and many client contracts, landlords or lenders ask for it. Even where it is optional, a claim can be costly to defend whether or not it is valid. Check your regulator's requirements and your contracts, and ask a broker what is usual for your profession.
What happens to my cover if I retire or close my business?
On a claims-made policy, cover for past work ends when the policy ends, unless an extended reporting period is bought or another arrangement is made. Speak to a broker well before you stop practising. Ask what options exist, how long they last, and whether they must be requested within a certain time.
Does professional liability cover work done before I bought the policy?
Only if the policy has a retroactive date that goes back far enough, and no known claims or circumstances are excluded. A new policy may carry a retroactive date at its start, leaving earlier work uninsured. Tell the broker when you began practising and ask them to preserve the earliest date possible.
Specialists
Sites for a specific line of work
General information, not insurance advice. Broker.insure is a directory and request service: it is not an insurer and does not quote, bind or advise. Policy terms, availability and what is required where you live depend on your situation and on licensed professionals. Updated 2026-10-31.