What Does Professional Liability Insurance Cover and Who Needs It?

professional woman looking at cost of insurance

What is professional liability insurance?

Professional liability insurance provides coverage for legal liability claims arising out of the rendering or failure to render professional services. It is also commonly referred to as Errors and Omissions Liability.

Professional Liability was designed to respond to losses resulting from the errors and omissions of individuals or firms providing professional services for a fee. Examples are architects, engineers, environmental consultants, lawyers, medical professionals, accountants and insurance brokers.

Professional Liability Insurance vs. Malpractice Insurance

Professional liability insurance is also referred to as malpractice insurance. These policies provide first dollar defence costs when allegations of malpractice are brought forward. Malpractice insurance is commonly used by medical and legal professions to help cover loss of earnings when requested to attend discoveries, mediation and/ or trial as part of the defence of a claim.

Who needs professional liability insurance?

All professional service providers should carry one form or another of professional liability insurance. Mistakes happen, so it is important to arm your business with a specifically tailored liability insurance policy.

The following service professionals most commonly need professional liability insurance:

  • Doctors
  • Nurses
  • Dentists
  • Lawyers
  • Realtors
  • Engineers
  • Architects
  • Property managers
  • Athletic trainers
  • Bookkeepers
  • Consultants

What does professional liability insurance cover?

Professional liability insurance provides coverage for the alleged financial loss (up to policy limits) suffered by a third party arising out of the rendering or failure to render professional services, as well as defence costs incurred to defend the allegations.

A few examples of what professional liability insurance covers include claims of:

  • professional negligence
  • misrepresentation
  • failure to meet industry standards
  • mistakes or omissions

Benefits of Professional Liability Insurance

Professional liability insurance can be considered the most important form of insurance purchased by professionals. Losses of this nature are generally excluded from commercial general liability. As such, professional liability is critical to the ongoing operation of any business rendering professional services or advice. Coverage includes legal defence costs, which can be considerable in these situations.

How much professional liability insurance do I need?

While there is no general rule of thumb, professional liability insurance policy should generally protect for at least $ 2,000,000. The amount and type of coverage will depend on the nature of your business and the scope of operations that you are involved in.

For example, if your business is one that comes with a low risk of accusations of malpractice, such as a retail environment, you may decide you need less professional liability coverage.

On the other hand, professionals such as dentists or doctors, who deal with more critical subject matter such as physical therapy or medicine, would be best served with more coverage.

How much does professional liability insurance cost?

The cost of Professional Liability policies can vary considerably, depending on a number of factors. To obtain accurate costs, you need to speak with one of our brokers.

In general, the cost of a professional liability insurance policy is affected by: 

  • industry risks
  • business size
  • coverage limits
  • deductibles
  • claims history

How To Get Professional Liability Insurance

For those rendering professional services and advice, Professional Liability insurance should form part of your business insurance program. Simply give one of our Edmonton-based insurance agents a call today.

Professional Liability Insurance: The Bottom Line

Professional Liability insurance doesn’t speak negatively to your business practices. It doesn’t mean that you are expecting to commit malpractice, that you’re avoiding responsibility for a misconduct suit, or admitting guilt when you’ve done no wrong. It simply means that you’re preparing for the worst-case scenario. As a business owner, it is prudent to protect yourself so that you can continue to operate your business in the event of a malpractice suit. Looking for a quote on Professional Liability Insurance? Call one of our brokers today for a quote.

More on Commercial Insurance

Why Do I Need Equipment Breakdown Coverage?

Surety Bonds: Does Your Business Need Them?

Why Do I Need Equipment Breakdown Coverage?

Curious about whether or not you need equipment breakdown coverage?  If your equipment isn’t covered and it breaks down, you might find yourself with an unexpected debt. If you’re a small business you can’t afford this kind of surprise.

What Equipment Does Your Business Rely on Daily to Operate?

If you’re a retail shop owner, contractor, skilled tradesperson, web developer, or a professional service provider, your small business probably relies on some type of equipment on a daily basis. Whatever equipment your business needs to operate, you should always ensure that it’s protected under the safety umbrella of your business insurance policy.


Why Doesn’t My Property Insurance Cover the Cost of My Equipment Breakdown?

Your commercial property insurance policy is designed to protect the building you operate your small business out of and the contents inside. A commercial policy can protect a number of possessions from specific losses including furniture, equipment, inventory, computers and electronics.

Additionally, property insurance can protect items outside the building. These can include landscaping, outdoor signs, and fencing. Unfortunately, your policy may not cover you for the sudden, accidental breakdown of your equipment.


Equipment Breakdown Insurance

If you had purchased equipment breakdown insurance in addition to your commercial property insurance you would have been covered for your loss.  At one time this coverage was limited to major manufacturers but is now an increasingly important part of a sound small business insurance package.


Equipment Breakdown Insurance for Electronics

Technology: New technology such as computerized and electronic equipment is subject to breaking down frequently and depending on your system can be more expensive to repair than mechanical equipment (such as a welding machine).

The Internet and Marketing: Necessary business practices such as Internet marketing make all businesses (large and small) more dependent on their computer systems.

Critical Business Information:  Businesses keep sensitive information about their clients and their business on their computer or on an online management system that can’t be accessed when equipment is down.

Employee Travel: Employees now travel with electronics and many work from home. At one time computers were at one fixed location so now there’s more opportunity for equipment breakdown in different areas of the world.

For more information for about equipment breakdown coverage or to speak with an experienced broker you can visit our website.

Surety Bonds: What They Are and Why Your Business Needs Them

You can begin thinking about the function, use, and risk of surety bonds by examining a typical loan scenario. Consider that you’ve opted for a financing option at your local car dealership. Perhaps you’re on the younger side, or perhaps you’re just making what is for you a relatively large purchase. The auto-dealer will only grant you that perfect two-year financing plan with the introduction of a co-signer or guarantor on the contract. You agree, and then ask your spouse or a parent or a friend to co-sign—and the auto company approves what is essentially a loan, to be paid back over the previously established two-year period.

In signing, you have become the “principal,” your co-signer the “guarantor,” and the auto company the “oblige.” A surety bond works similarly—where a surety (guarantor), legally vows to pay the obligee a certain amount if the principal defaults on their payment or otherwise fails to meet some other contractually binding obligation. The surety is essentially proof of the principal’s insurance against failure to fulfill pecuniary duties to the obligee.

Another way of conceiving of surety bonds is by putting them in terms of credit—if credit is understood in its literal, and etymological sense: to trust. That is, the surety bond ensures that the obligee can trust the principal.


Does Your Business Need Surety Bonding?

This is just one example of a unique use for surety bonds, available at several locations in and around Edmonton. Issuance and reception of surety bonds is particularly relevant, not to mention prudent, depending on the type of business in which you are engaged. If you’re starting up, be sure you are not legally required to have surety bonding. Regardless of a business’s obligation to have a surety, it may be worth it.


Types of Bonds, Types of Businesses

Another type of surety bond available to businesses and corporations is the business service bond. There are two main reasons why this form of bond may suit the needs and goals of your company. For one thing, a business service bond is a surety bond that protects a bonded entity’s client (the bonded entity being your business) from potential theft or negligence causing damage. If your business offers services along the lines of janitorial work, home healthcare, contracting and construction, or any other business type that offers services where employees regularly enter onto a client’s property, then a business service bond could help cover potential losses incurred through your business’s employees.

However, no one enjoys thinking that someone who they have employed to help maintain their thoughtfully orchestrated business is partial to theft. Most likely, as the owner of your business, you’ve made considered work of hiring, and a loss incurred in such a way would not happen. That said, aside from the potential aid a business surety bond could provide in the case of such undesirable circumstances as just described, the surety bond will also increase the comfort level and trust of clients—along with the confidence insurers are willing to extend to your business.

Having such a vote of confidence from others makes for a more confident, and more competitive business.

Contact Sadler today for your fidelity bonds, license and permit bond and contract bonds, including prepaid, bid and performance bonds.

Three Ways to Insure Your Business Against Crime

Burglar opening a drawer in the office at night using a crowbar he is stealing confidential data and information data theft and security concept

Crime insurance is an important method of protection for any business, as loss prevention techniques are often not enough. This insurance will ensure that your business is protected from employee dishonesty, robbery, as well as issues concerning forgery and alteration.

If you own your own company, there are many things that you need to consider to ensure that business runs smoothly at all times. Loss prevention is important to consider in any workplace, but even the best plans may fall short of actually preventing theft and damages. Even the most sophisticated loss prevention techniques cannot eliminate all potential threats. This is why it is important to have some form of crime insurance in place, protecting your business from any future crime losses. There are many forms of coverage, and three ways to ensure that your business is protected are outlined below.

Employee Dishonesty Coverage

As much as any business owner doesn’t want to think about their employees committing crimes against the company, it is a very real possibility that you should be protected against. Employee dishonesty coverage is one form of crime insurance that benefits any business. With this form of crime insurance in place, you are at least prepared in the event that something does happen. Employee dishonesty often involves the theft of company money, inventory or other assets, but also includes any other forms of financial fraud or corruption. It is important to take loss prevention seriously and stress its importance in the workplace. However, in the event that the techniques in place do not effectively put an end to employee dishonesty, crime insurance coverage will protect your business from these losses.

Protection Against Robbery

Theft through robbery is a real concern for every kind of business. If you are in the business of selling specific products, it is necessary for your company to retain its inventory and meet the sales goals necessary to keep your business running smoothly. After all, a fashion retail store runs the risk of dealing with costly losses if the merchandise that you are trying to sell has been stolen from you.

Robbery is also a great concern for offices and other kinds of businesses that are full of various pieces of expensive equipment that can be stolen or damaged during a break in. Many companies also retain sensitive client information that must be protected, which is why crime insurance is so important when dealing with the aftermath of a robbery.

Forgery and Alteration Coverage

Forgery is a widespread issue that not only affects businesses, but individuals as well. Identity theft on an individual scale can be debilitating for the person involved and is often difficult to rectify in a timely manner. Similarly, forgery and alteration can be a difficult issue for a business to deal with, as it may take time and further investigation to explore the extent of the theft reported. Cases involving information that has been forged or altered for financial gain can be difficult for a company to navigate alone. Tracing transactions back to determine which of these past transactions were legitimate and which were falsified can be a tedious and lengthy process. Crime insurance enables businesses to rectify these situations swiftly and with as little hassle as possible.

Providing Peace of Mind

Having been established in 1936, Sadler Insurance has the experience necessary to serve your insurance needs. We are not your average insurance brokerage, as we believe in building relationships with our clients and our insurance partners. We serve all Albertans, aiming to make the “fine print” clear for you, so your insurance choices don’t seem too overwhelming. If you have any questions regarding protecting your business against crime, or any other insurance-related concerns, please do not hesitate to contact us.

Our team of Edmonton insurance brokers is ready to serve you via email at sadlerin@sadlerin.com or by phone at (780) 433-4426. We will show you why your best insurance is an insurance broker.

3 Things You Should Know About Professional Liability Insurance

Small business owner smiling.

As a business owner, professional liability insurance is a must-have.

As a business owner, you know that protecting your business is just as important as building it up in the first place. The best ideas, the best products, and the best customer experience can meaningless in an instant if an emergency takes place that prevents you from continuing to operate your business at a normal capacity.

That’s where insurance comes in. Every business should be insured against a number of potential hazards.

Professional liability insurance covers you should accusations of malpractice or misconduct prevent your business from operating normally, or if you find yourself having to pay restitution and legal fees as part of a lawsuit. Professional liability insurance allows you to maintain your business operations during and in spite of these situations and provides you with the financial security to move forward, recover from the situation, and continue to focus on building the success of your business.

Here are a few things you should know before you purchase professional liability insurance.

It Can Be Included in Your Insurance Package

As with any type of insurance, professional liability insurance should be packaged in with other types of business insurance. It may seem expensive if you’re looking at rates independently, and that may deter you from purchasing it. However, a good insurance provider will offer you a package deal which will reduce the overall costs of the professional liability insurance, as well as other types of insurance you purchase for your business.

It’s About Keeping Your Business Going

Having professional liability insurance doesn’t say anything about your business practices. It doesn’t mean that you are expecting to commit malpractice, or that you’re avoiding responsibility for a misconduct suit, or admitting guilt when you’ve done no wrong. It simply means that you’re preparing for the worst-case scenario. Sometimes, terrible things happen, things that may be out of your control. As a business owner, the prudent thing to do is to cover yourself so that you can continue to operate your business in the case of a malpractice suit.

Your Insurance Should Depend on Your Business

The amount and type of coverage your insurance provides should, of course, depend on the nature of your business. If your business is one that comes with a low risk of accusations of malpractice, such as a retail environment, you can probably get away with minimal coverage. However, a business that deals with more critical subject matter, such as physical therapy or medicine, should obviously have a higher level of protection.

You may have heard the term “malpractice insurance” used in the same context as professional liability insurance. Malpractice coverage can be considered a type of professional malpractice coverage but refers specifically to situations in which professional malpractice results in physical harm or injury. Whether or not malpractice insurance is appropriate for you will depend on the nature of your business.

To learn more about professional liability insurance, contact us today.

5 Tips to Get the Best Commercial Auto Insurance

broken front of new car; detailed closeup

In order to get the best commercial auto insurance, keep these five tips in mind when you begin shopping for a quote.

It often seems that there is no aspect of insurance that is easy to understand, especially if you are not well-versed in the industry. Everyone needs insurance of some kind at some point in their lives, yet so many individuals are unsure of what exactly they’re looking for. This is no different when it comes to commercial auto insurance. Sadler Insurance is here to help with our five tips to get the best commercial auto insurance.

  1. Small Businesses Need Coverage Too!

Even if you are currently running a very small, home-based business, you need commercial auto insurance if you have vehicles specifically for business use. When many people think of commercial automobile insurance, they automatically think of large corporations with fleets of vehicles, but no matter what size your business is, you are better off protected. Keep in mind that many homeowners insurance policies provide little to no insurance for business activities.

  1. Differentiate Between Commercial and Personal Insurance

There is a big difference between commercial and personal insurance coverage, which is important to keep in mind if your business is run from your home. In the event that an issue arises, you need to make sure that your business is covered, as your homeowners insurance will often provide little help in covering business expenses. You will need commercial auto insurance for any vehicles pertaining to your business, as well as workers compensation insurance, property insurance, and liability insurance in order to stay protected.

  1. Keep the Worst-Case Scenario in Mind

Although it is difficult to think about, it is beneficial for you to keep the worst-case scenario in mind when choosing a commercial auto insurance package. After all, insurance is there to protect your business from potential losses that you could not afford to cover, should a problem present itself. You want your insurance to be affordable to you, but also cover you, no matter what might happen in the future.

  1. Ensure That You Are Getting the Best Deal

There are many factors that affect the cost of insurance and the coverage available when it comes to choosing commercial auto insurance. The coverage that is available to you, as well as the premium costs, may be affected by things such as the location of your business, the size of your business, the number of vehicles being insured, and the number of years that you have been insured. Look at all of your options and make sure that you receive the best possible price for what you are seeking.

  1. Customize Your Insurance to Suit Your Needs

Insurance policies can always be customized in order to better protect each client. The same goes for commercial auto insurance. If you would like to purchase general coverage, but also need specific coverage for certain projects, explore the ways in which your policy can be tailored to fit your needs. Your insurance company should be willing to work with you, every step of the way.

A Name You Can Trust

No matter what your insurance needs are, you can trust Sadler Insurance with all of the toughest decisions that you need to make. We have been serving Albertans for 80 years. With our knowledge and expertise in the field of insurance, you can rest easy knowing that you have Sadler on your side. We are a full service independent Edmonton insurance broker, with a team of professionals ready to serve you.

Since being established in 1936, we have the experience necessary to assist you. We are not your average insurance brokerage, as we will help you to understand exactly what your insurance choices are. We want to make all of that “fine print” clear to you, as we care about each of our customers. Sadler Insurance believes in building relationships with our clients and insurance partners alike. If you’d like to learn more or receive a quote, do not hesitate to contact us! One of our experienced team members will be able to serve you!

Simply fill out our online form, or call us at (780) 433-4426. You can trust Sadler Insurance because above all else, we want to work for you, not an insurance company.

Are you SURE you have the commercial insurance you need?

There may be gaps in your coverage you don’t know about!

When it comes to commercial property insurance, the first question to ask is always “What do I need to protect myself from?”. The answer can vary depending on the type of business you own.

For example, here are three types of damages that businesses should be (but often aren’t) covered for by their insurance plan. They are:

  • Physical Damage
    Whether your business in a small nail salon or a multi-location corporation, you have property that has value. You may not even realize just how much you have! That ergonomic chair that you are sitting on? Yup, that’s insurable property! That inventory of baking ingredients for your bakery? Yup, that’s insurable too! Even things like computer files, your print materials, and your business cell phones are considered physical property that you can insure.

  • Theft
    Coverage that protects a business against theft, fraud or incompetence is often called “bonding insurance”. Did you know that 8 out of 10 cases of business fraud or embezzlement are committed by an employee? These types of crimes can have a serious impact on the stability and future of your company. Don’t wait to consider this kind of coverage!
  • Loss of useconference-room-768441_960_720
    Sometimes referred to as “business revenue insurance”, this type of coverage simply means that you are not only insured for the damages to your business in the event of an accident (for example a fire destroys your auto parts store), you are also ensured for the loss of income you will experience until your business is up and running again. There are different types of insurance plans that are available for this, all with different kinds of benefits.

At Sadler Insurance, we are well-versed in identifying client needs and creating custom policies that cover all of the key areas their businesses require. We create custom policies that leave NO gaps, so you can focus on the day-to-day grind without worrying about what would happen in the event that something goes wrong.

Did you know that we also keep detailed records of your coverage, claims and losses so that all of your information is in one place, ready and available to you? With Sadler, you won’t have to go searching for papers in the middle of a crisis. We’ve got you covered!

And lastly, we do all of this at a competitive price with paramount customer service.

If you’re a business owner in the Edmonton area and want to be sure there are no gaps in your coverage, give us a call today! 780-433-4426!

You can also visit us online at: www.sadlerin.com.

We look forward to providing you with a product that fits your needs!

What to Look for in Commercial Insurance


When you’re deciding which type of commercial insurance to get, it’s important to do your due diligence. When you think about it, this kind of insurance is a safety net that protects your business in case of legal issues and/or unexpected events, therefore it is something you can’t do without. Today we will give you some tips on what to look for in commercial insurance protection.

Commercial Liability Insurance – The Largest Portion of Your Insurance

Liability insurance helps protect you from the high costs of:

  • Property damage
  • Fire damage
  • Actual and alleged physical damage
  • Medical payments
  • Employee injuries
  • Customer injuries that occur on your businesses premises
  • Customer injuries that occur as a result of your product
  • Copyright infringement, slander, libel, and misleading advertising
  • Damage as the result of negligence on your behalf or on the behalf of your employees
  • Legal fees
  • Court costs
  • Settlement costs

Things to Consider About Liability Insurance

  • Who is Covered: Make sure you know what your policy covers. Most general liability policies depend on the type of business. For example, a sole proprietorship – both spouses should be covered.
  • Policy Limits: This refers to the total amount that a policy will pay out for a claim. Make sure that your liability policy limits are high enough based on the risk for your business.
  • Are Subcontractors Covered? They aren’t always covered by commercial insurance. Make sure you discuss your needs with your commercial insurance professional to make your contractors are covered.

Commercial Vehicle Insurance

You want to have insurance coverage for all of your company vehicles. If you have several vehicles that you use for work, consider fleet insurance.

Commercial Property Insurance

Another thing to look for in commercial insurance is coverage for equipment, inventory, machinery and property.  You could also include tools in this category that are used on and off your property (for example, if you have service technicians who do house calls). Their tools may not be covered under your commercial vehicle insurance policy.

If you run a daycare or a high-end restaurant, you may want to look into specialty flooring, landscape, signage, or lighting insurance.

Business Interruption Insurance

This type of insurance covers your fixed expenses such as payroll and replaces lost revenue if your business has to close due to an event, or property damage that makes business operation impossible.  If you were to have a flood that would be horrible, but if you had to close down temporarily and didn’t have this insurance you may not be able to financially recover.

We encourage you to take the time to research, and discuss with your insurance provider every aspect of your insurance policy. The last thing you want is to be under insured.

Contact us today for more information on commercial insurance.

Does My Business Need Crime Insurance?

commercial insuranceThe short answer: yes. And here’s why…

As a business owner/operator, you no doubt have commercial property insurance.  While commercial property insurance covers a wide array of issues, commercial crime insurance ensures that you have coverage for everything from property theft to fraud. Many commercial property insurance poilicies do not cover these losses. Crime insurance offers coverage for office furniture, cash, computers patents, etc.

Financial losses due to crime can be hard on a medium to large sized business, but absolutely devastating for small businesses.  Imagine the impact the loss of your client list or financial files would have on your business.

Crime insurance covers losses due to:

  • Forgery
  • Employee theft
  • Computer fraud
  • General fraud
  • Counterfeit money
  • Employee Dishonesty

Call our insurance brokers today to ask about crime insurance and more of our commercial insurance products.

6 Common Misconceptions about Commercial Insurance

There are several misconceptions about commercial insurance that have been discussed so regularly much that most people think they are true. Understanding these common misconceptions and the actual truth will help you make informed decisions.

1) Any insurance agent can offer commercial insurance: The fact is that any licensed agent can offer personal lines, but there is need for special training to offer commercial insurance. This is because commercial insurance is complex since different businesses have different needs.

2) The type and amount of coverage varies depending on years established, type of business undertaken and location: The fact is that an insurance company will offer insurance based on specific risks. Some businesses may fall under preferred market risks and others as non-standard risks. It is unlikely that insurance needs for any two businesses, even in the same industry, will be the same.

3) Comprehensive commercial insurance is the best option: At Sadler Insurance we believe in customized packages for every business. As an example, if you do not have commercial vehicles or you live in a rental property, you do not need comprehensive commercial insurance that includes commercial auto insurance and commercial property insurance respectively.

4) All insurance companies offer commercial insurance: The fact is that only a few insurers offer this insurance. The company offering the insurance must have the financial might to make huge payments in case of any eventuality.

5) Any licensed commercial insurance company will do: The fact is that Sadler Insurance brokerage works with different affiliate companies to ensure our clients get the best rates and insurance for their business or lifestyle.

6) Premiums for the same commercial insurance policy are the same across the board: The fact is that there is no standard premium for commercial insurance. Different insurance companies have different rates based on market forces, the risks covered and other parameters.