Do I need Professional Liability Insurance?
Anyone who provides professional advice or services should consider Professional Liability coverage.
Consider this example of a case where Professional Liability Insurance would be beneficial:
Tracy, the owner of an Ontario-based event planning firm, was hired to provide event management services to a trade association holding its annual convention in Toronto.
During the course of the event preparation, errors were made in the advertising flyers sent to the convention attendees. The flyers incorrectly listed the speaking times and topics, making the flyers unusable. All of the flyers had to be reprinted and resent to the attendees, generating substantial additional costs in printing and postage.
The trade association sought to hold Tracy liable for the losses, and they filed a lawsuit against her and her event planning firm. Thankfully Tracy had a professional liability policy, which she purchased when she started her company a few years ago.
Tracy’s professional liability policy was written to cover service errors, contract performance disputes and defence costs. Therefore, the costs of the lawsuit brought against Tracy’s company were covered by her insurance policy, saving Tracy a lot of money in litigation costs.