Professional Liability Insurance in Ottawa

Ottawa has evolved. We are no longer just a lumber and industrial town; we are a global hub of thinkers, designers, and innovators. From the tech parks of Kanata North to the federal offices downtown, the primary asset for most Ottawa businesses is no longer physical inventory, it is intellectual capital.

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However, this shift introduces a specific type of risk. If you are an IT consultant, management advisor, or healthcare practitioner, a standard liability policy is insufficient. You need coverage that protects your advice, not just your office furniture.

At Oegema, Nicholson & Associates (ONA), we have served the National Capital Region since 1961. We don’t just sell insurance; we act as your risk management partners. We review your contracts, tailor your limits, and ensure you are compliant with federal and industry standards.

What Is Professional Liability Insurance?

Professional Liability Insurance (PLI), also known as Errors and Omissions (E&O) insurance, is coverage that protects you against claims of financial loss resulting from your professional services.

If a client sues you alleging negligence, bad advice, or failure to deliver promised services, professional liability insurance can cover the legal defense costs and any resulting damages.

The Difference Between Professional Liability Insurance and Commercial General Liability

Many professionals mistakenly believe their Commercial General Liability (CGL) policy covers all risks. This is a dangerous gap in protection:

Commercial General Liability (Physical Risk): Covers bodily injury or property damage (e.g., a client slips in your lobby or you spill coffee on their server).
Professional Liability Insurance (Economic Risk): Covers financial loss and intangible harm (e.g., a coding error crashes a client’s app or strategic advice causes a drop in revenue).

If you work in the “knowledge economy,” roughly 90% of your risk exposure is intangible. Without PLI, you face personal exposure to lawsuits that can exceed hundreds of thousands of dollars in legal fees alone.

Not sure if your specific business model creates these risks? Dive deeper into our guide: Why Do I Need Professional Liability Insurance?

Need a policy review? If you aren’t sure what your current policy covers, send it to us. We’ll identify the gaps and come up with a comprehensive coverage plan.

Who Needs Professional Liability in Ottawa?

In the Ottawa region, the definition of a “professional” extends far beyond doctors and lawyers. If you provide a service, design, or advice for a fee, you are a professional exposed to liability. We specialize in designing policies for:

IT & Tech Consultants: Software developers, systems architects, and cybersecurity specialists (especially in Kanata).
Healthcare Practitioners: Massage therapists (RMTs), psychotherapists, and private clinic owners.
Business Consultants: Management advisors, HR professionals, and marketing agencies.

Critical Concept: "Claims-Made" Policies

Why must my insurance be active when I get sued, not just when I did the work?

Professional Liability policies are written on a “claims-made” basis. This means you must have an active policy in place at the moment the claim is reported, regardless of when the work was performed.

The Risk

If you cancel your coverage today and are sued next month for work you did last year, you have no coverage.

The Difference

This differs from car or home insurance, which are "Occurrence-based" (covering you forever for accidents that happened during the policy term).

The "Retroactive Date" Trap

Every professional liability insurance policy includes a retroactive date, which is the specific date your coverage history begins.

Warning

If you let your policy lapse, even for a few days, your new policy may reset this date to "today," eliminating coverage for all prior work.

Expert Advice

Never cancel a policy without consulting a broker. If you are retiring or closing your business, ask us about "tail coverage", which extended the reporting period to keep your reporting window open for past liabilities.

We actively manage your retroactive dates. If you switch insurers, we ensure your history moves with you so you never lose protection for past work.

Navigating Government Contracts (TBIPS)

We take the “Red Tape” out of Federal Insurance Requirements.

Federal government contracts strictly mandate valid Professional Liability and Commercial General Liability insurance. Procurement officers often ask for specific clauses that can be confusing or even impossible to secure without a broker’s help.

Our Contract Review Service: When you receive a contract or Statement of Work (SOW), send the insurance clause to ONA.

We Audit the Clause: We verify if the requested limits (e.g., $2M vs $5M) are standard or excessive.
We Negotiate: If a department asks for “Additional Insured” status on your Professional Liability (which is generally uninsurable), we provide the language to push back and correct the request.
We Certify: We issue Certificates of Insurance immediately upon renewal so you never face a compliance breach or payment hold.

Cost of Professional Liability in Ottawa

How much does professional liability insurance cost?

Premiums are influenced by several factors, including your annual revenue, profession, scope of services, claims history, and the liability limit you choose. For a typical Ottawa-based management consultant with a low-risk profile and no prior claims, professional liability insurance premiums can start as low as $500 annually.

Costs may increase for higher revenue businesses, expanded service offerings, or higher coverage limits such as $2M or more.

FAQ: Professional Liability Essentials

Does professional liability insurance cover data breaches?

Generally, no. Standard professional liability insurance policies exclude cyberattacks. However, we often write tech errors & omissions packages that combine professional liability with cyber liability, ensuring you are covered for both coding errors and the data breaches they may cause.

Can I treat my legal defense costs as "outside the limit"?

Some policies allow legal defense costs to be paid “outside the limit,” keeping your full policy available for settlements or judgments. Availability depends on the insurer, so check with your broker or provider.

Do I need professional liability insurance if I am incorporated?

Yes. While incorporation limits liability for commercial debts (like rent), professional negligence is a personal tort. A client can sue both your corporation and you personally. Professional liability insurance is essential to protect both corporate and personal assets.

What happens to my insurance if I retire?

Because professional liability insuranceI is “claims-made,” retiring leaves you exposed to claims from past work. You must purchase tail coverage to maintain protection for claims filed after you have ceased operations.

Why Choose ONA For Your Professional Liability Insurance?

We know you have options, including online “direct-writers” promising instant quotes. But insurance is a legal contract, not a commodity.

We Work for You: Direct agents represent the insurance company. As independent brokers, we represent you, protecting your interests especially during a claim.
Local Roots: With insurance brokerage offices in Ottawa, Manotick, Almonte, Russell, and Orleans, we are real people you can meet face-to-face.
Claims Advocacy: We don’t just sell the policy. If you are sued, we fight to ensure the insurer honors their commitment.

Ready to protect your business?

Don’t let a single allegation undo years of hard work. Contact Oegema, Nicholson & Associates today for a Free Quote and experience the difference of real advice from real experts.

What Our Clients Are Saying

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“One call to Oegema, Nicholson & Associates is all it took. After our basement flooded, within a day or two they had a crew cleaning everything up, taking down the drywall and itemizing everything to be cleaned, thrown out or restored. They had everything in place for us in a timely manner and were extremely patient with me as they talked me through the process and waited for me to make decisions.”

Jennifer Parks, Stittsville, Ontario

“I’ve been dealing with ONA for over 20 years with my personal insurance, as well as our commercial insurance, and I know I can rely on them for great customer service, and prompt responses. I feel confident not only referring them to my employees, but to our customers as well.”

Charlene Brunet, Butler Group of Company

“ONA helps me with my personal insurance and my business insurance. They are my one stop shop when it comes to insurance and group benefits. I know I’m covered in all areas. Great friendly service and knowledgeable staff!”

James Carriveau, President, Exact Interlock and Exact Properties

“It’s always a pleasure to deal with Oegema, Nicholson & Associates, and I can depend on them for all my insurance needs. I have been a client for several years and whether it’s regarding my personal insurance, or anything to do with our employee benefits or commercial needs, I know I’m taken care of.”

Rhonda, Capital Dodge

“I would like to thank Carol for everything she has done for me and my family over the years. It is my honest belief that we would not be in the position we are in if it was not for her guidance, expertise and honesty. We can’t begin to thank her enough.”