General liability vs. professional liability (E&O): what Ottawa businesses need
Part of the series: Business insurance in Ottawa →
These two are often confused, and many businesses need both. Commercial general liability covers physical harm: injuries and damage to property. Professional liability, also called errors and omissions (E&O), covers financial harm caused by a mistake in your professional services or advice.
Side by side
| Commercial general liability (CGL) | Professional liability (E&O) | |
|---|---|---|
| What it covers | Bodily injury and property damage to others, personal injury such as libel, and injury or damage caused by your products or completed work | A client’s financial loss caused by your error, omission, negligent advice or missed deadline |
| Example | A client trips over a cable during a meeting at your office, or you damage a client’s floor while installing equipment | A configuration error takes a client’s online store offline for a week, or a design mistake forces costly rework |
| Who often asks for it | Commercial landlords, event venues, general contractors and government contracts | Clients in tech, consulting and government, and regulators for some professions |
| How claims are usually triggered | Occurrence: covers incidents that happen during the policy period, even if the claim comes later | Claims-made: the claim must be made and reported while a policy is in force, for work done after the retroactive date |
If you give advice or professional services and also meet clients or work on their premises, you probably need both. A general liability policy usually excludes professional services, and a professional liability policy usually excludes bodily injury and property damage.
Who asks for it in Ottawa
- Federal government work. Contracts managed by Public Services and Procurement Canada commonly require commercial general liability of at least $2 million per occurrence and in the annual aggregate. Some contracts also require professional liability, so read the insurance annex before you bid.
- Tech and consulting clients. Master service agreements with larger clients in Kanata and elsewhere often require technology E&O, sometimes combined with cyber liability. Check the limits and any limitation of liability clause.
- Commercial leases. Landlords typically require general liability, often $2 million to $5 million, with the landlord named as an additional insured, plus insurance on your own contents and improvements.
- Regulated professions. Some professions must carry professional liability through their regulator. In Ontario, for example, licensed mortgage brokerages must have errors and omissions insurance.
Sources: Public Services and Procurement Canada insurance requirements · FSRA mortgage brokerage licensing
Tips for professional liability
- Protect your retroactive date. When you switch insurers, ask the new insurer to keep your original retroactive date, so work you’ve already done stays covered.
- Report possible claims early. Claims-made policies require prompt notice. If a client complains or threatens a claim, tell your insurer or broker right away, even if you think it will go nowhere.
- Plan for retirement or closing. Claims can arrive after you stop working. Ask about an extended reporting period before you cancel your policy.
- Use clear contracts. A written scope of work and clear deliverables can help prevent disputes, and your insurer may ask about them.
General vs. professional liability
Read the video text
- General or professional liability? Many businesses need both.
- General liability. Injury to others and damage to their property, like a client who trips at your office.
- Professional liability (E&O). A client’s financial loss from a mistake in your work or advice.
- Who asks for it in Ottawa: Commercial landlords, Federal contracts: often $2 million, Regulators for some professions.
- E&O tips: Keep your retroactive date, Report possible claims early, Plan for coverage after you retire.
- Check your liability coverage. Call or text (613) 777-0375 · frankinsurance.ca/blog/business-insurance-ottawa
Common questions
Does general liability cover poor workmanship?
Generally, it doesn’t pay to redo your own faulty work, but it may respond to resulting damage to other property, such as water damage from a leak. Wording varies by policy.
What is a retroactive date?
On a claims-made policy, it’s the date from which your past work is covered. Work done before that date isn’t covered, so keeping the same retroactive date when you renew or switch matters.
Is professional liability mandatory?
For some professions, yes, through their regulator. For most other businesses it’s required by contracts rather than by law, but it can still be essential.
How much coverage do I need?
Start with what your leases and contracts require, often $1 million or $2 million per claim, then think about the largest loss a client could realistically claim.
Check your liability coverage
Send Frank your current policy, or the insurance clause from a contract, lease or permit. A licensed Ottawa broker will check what it requires and compare options across insurers. No obligation, and nothing changes without your approval.
This guide is general information, not legal or insurance advice. Coverage depends on each insurer’s policy wording, including exclusions, conditions, limits and deductibles. Requirements from the City of Ottawa, WSIB and other sources were checked in September 2026 and can change, so always confirm the requirement in your own contract, lease or permit.