Commercial general liability insurance handles bodily injury and property damage. It doesn’t cover a client who claims your advice cost them money, or that your work fell short of what you promised. That’s a different kind of risk entirely, and professional liability insurance, also known as errors and omissions insurance (E&O), is what closes the gap. Consultants, accountants, engineers, real estate agents, and software developers across Alberta all carry some version of this coverage for the same reason: the moment you’re paid for advice or expertise, you’re exposed to claims that general liability was never built to handle.
A standard policy is built around a few core protections:
Covers claims that your professional advice or service was performed carelessly or below the expected standard.
Covers mistakes or oversights in the work or advice you provided, even unintentional ones.
Covers claims that you failed to complete a service as promised or agreed upon in a contract.
Cover legal fees to defend a claim, even if you're ultimately found not liable.
A few things fall outside a standard policy’s scope:
These fall under commercial general liability, not professional liability.
Coverage doesn't extend to deliberate wrongdoing or fraud.
Policies are generally structured to respond to financial loss claims, not other categories of harm.
Most professional liability policies are written on a claims-made basis rather than an occurrence basis, meaning the policy in force when a claim is filed responds, not necessarily the one active when the mistake happened. This matters more than it sounds like it should.
A retroactive date sets how far back a policy will cover past work. Switching insurers without confirming this can leave older work unprotected.
Often called tail coverage, this extends the window to report a claim after a policy ends or a business closes, which matters for anyone changing insurers or winding down a practice.
Costs vary widely by profession and risk exposure, but here’s a general sense of the range:
Consultants and technology-based businesses typically pay $500 to $1,500 a year for basic coverage.
Fields with greater financial exposure, such as engineering, architecture, or specialized financial advisory work, can run $5,000 to $10,000 or more a year.
Accountants and real estate professionals typically pay $800 to $2,500 a year, depending on revenue and coverage limits.
Most policies combine a per-claim limit with an annual aggregate limit, similar in structure to commercial general liability, with a standard $1 million per claim and $2 million aggregate policy typically running $500 to $3,000 a year.
Several factors shape what a business ends up paying for professional liability coverage:
Higher-stakes advice, such as financial or engineering work, generally costs more to insure than lower-risk consulting.
Past claims against you or your business affect future pricing.
Extending protection further back or adding tail coverage can affect the premium.
Larger client contracts and higher business revenue typically increase exposure and premium.
Higher per-claim and aggregate limits increase the cost accordingly.
Here’s what sets an InsureMy policy apart for Alberta professionals:
Our advisors build professional liability coverage around your actual services and client contracts, not a generic template.
We understand the range of professions across the province that need this coverage, from consultants to engineers and real estate professionals.
Our trademarked approach looks at how your professional liability coverage fits alongside your other business policies, not just in isolation.
You'll talk through your actual contracts and exposure with a real advisor, not a generic quote form.
Insurance
Professional liability insurance connect with Commercial General Liability and Cyber Insurance, particularly for consultants and service providers with both advice-based and data-related exposure.
CGL covers bodily injury and property damage to third parties, while professional liability covers claims related to your advice, services, or professional judgment.
Often, yes. Independent consultants and self-employed professionals face the same claims exposure as larger firms, and many clients require proof of coverage before signing a contract.
It sets how far back a policy covers past work. If you switch insurers, confirming your retroactive date matters to avoid leaving earlier work unprotected.
An extended reporting period, or tail coverage, can extend the window to report a claim after your policy ends, which is worth discussing with an advisor before winding down.
No. Coverage is designed for genuine mistakes or negligence, not deliberate dishonest acts.
For your professional liability coverage, and talk to an InsureMy advisor about protecting the advice and services you provide.
