CANADIAN INSURANCE TERM
Professional Liability Insurance
Liability coverage designed for certain claims arising from professional services, advice, errors or omissions, subject to the policy wording.
Plain-language definition. A real policy, endorsement and provincial law can use more specific wording than a glossary summary.
TermProfessional Liability Insurance
ContextCanadian insurance
Source typeIndustry glossary
Policy wordingControls claim
What does Professional Liability Insurance mean?
Liability coverage designed for certain claims arising from professional services, advice, errors or omissions, subject to the policy wording.
Professional liability is different from commercial general liability. A consultant can face allegations about advice or services even when nobody is physically injured and no property is damaged.
Professional Liability Insurance in practice
A client may allege that a consultant's professional error caused a financial loss. Whether the claim is covered depends on the professional liability policy and facts.