When your work involves professional advice, services, or decisions, even a single allegation can lead to costly legal action.
Professional Liability Insurance helps safeguard your finances, your reputation, and your ability to keep doing what you do best.
If your professional actions could expose you to risk, this insurance is worth considering. See some of the risks you may face below.
These policies generally cover legal defence costs and damages for:
From unexpected claims to complex disputes, this coverage gives you the confidence to move forward knowing you have support behind you.
Professional Liability Insurance (PLI) is designed to respond to claims related to the professional services you provide. These claims can include allegations of negligence, errors, omissions, misrepresentation, or failure to meet professional standards.
Even when a claim is unfounded, the cost of legal defence can be significant. PLI helps cover legal fees, settlements, and judgments — helping protect both your finances and your professional reputation.
If you offer professional, consulting, advisory, or technical services, including recommendations or opinions.
If you work directly with clients or the public and could be held responsible for errors, omissions, or negligence.
If you are required to carry coverage by a regulator, contract, or client.
Provides coverage for legal costs associated with having to respond to a complaint or appear at a disciplinary hearing with a provincial regulatory organization or agency.
Reimbursement for defence costs associated with a case filed under the Criminal Code if the professional service was rendered in Canada and the insured is found ‘not guilty’ of the criminal charge.
Some policies include funding for the rehabilitation and therapy of a person who, while a patient or client, suffered abuse in the course of an insured member’s professional practice.
Helps replace income you lose if you’re unable to work due to a covered claim, investigation, or legal proceeding.
To replace a third party's loss of physical documents. For example, if you were to lose client files or if the files were destroyed due to fire.
Some policies automatically include Extended Reporting Period coverage for professional liability claims that are first discovered and filed after you have retired and/or discontinued practice.
A physiotherapist provides a treatment plan to a patient, but an unexpected complication leads to the patient experiencing further injury.
The patient files a claim seeking $40,000 in damages.
The physiotherapist's Professional Liability Insurance policy covers $15,000 in legal defense costs and $25,000 in damages awarded, protecting the physiotherapist from personal financial exposure.
Similarly, a social worker gives advice to a client regarding a sensitive case, but a misunderstanding results in the client suffering emotional distress and pursuing a $30,000 claim. The social worker's PLI policy steps in to pay $10,000 in legal fees and $20,000 in damages, ensuring the social worker’s practice and personal assets remain secure.
Find answers to common questions and get the information you need quickly.
Please note that answers may vary depending on your program or policy and are provided for general informational purposes only; they do not constitute legal, professional, or insurance advice.
While coverage conditions vary per program, BMS PLI policies generally apply to services delivered in Canada or worldwide. When delivering virtual services and in order for your insurance coverage to apply, you must be working within your scope of practice.
You must also abide by the professional regulations in your jurisdiction (for instance, the province in which you reside or are delivering services) and in the jurisdiction where your patient or client is located.
This answer depends on how the policy is written. Many BMS PLI policies are written on a claims-made and reported basis, which means that coverage is triggered when a claim is made against you during the policy period, regardless of when the services that gave rise to the claim were delivered.
Not all claims-made policies are equal. Some policies limit coverage to services delivered on or after a specified date, or those delivered after your insurance policy has been put in place.
Furthermore, some policies are written on an occurrence-basis, which protects you for claims arising from incidents that actually occur during the policy period, even if the claim is made years later.
We recommend reviewing your policy wording carefully and contacting BMS to ensure your coverage meets your needs.
BMS PLI policies generally pays legal costs on behalf of the policyholder, with the exception of Criminal Defence cost coverage, which will be reimbursed once the member is found “not guilty” of the criminal charge.
While you do have choice of legal counsel, your insurance program likely works with experienced legal partners who specialize in professional liability and regulatory matters.
The insurer needs to be notified of any claim as soon as possible after you are made aware of it. Prompt claims reporting is critical to the process of bringing claims to a successful resolution. Members aware of any actual or potential claim must report it immediately.
Please refrain from making any written or oral statements to the claimant unless the insurer or adjuster advises to do so. Please do not offer to compensate a client as such action could interfere legally with the management of a claim.
You can find claim reporting details on your certificate of insurance or policy documents.
