What is Consultant Insurance? A Guide for Sask Professionals

As a consultant, you know the value of the expertise you provide. But have you thought about what happens if that expertise is called into question? Protecting your business isn’t just about “best practices”; it’s about survival in a world where one professional error can lead to a six-figure lawsuit.

What is Consultant Insurance?

At its core, consultant insurance is a customized suite of coverages designed to protect professionals who provide expert advice, specialized services, or project management. Unlike a standard retail policy, this insurance is built to handle the unique “intellectual risks” that come with being an authority in your field.

When your job is to guide others, an unintentional slip (such as a miscalculation in a financial forecast, a missed deadline on a critical IT project, or a data breach involving sensitive client files) can trigger a major financial crisis.

Consultant insurance acts as your safety net, as it can help in covering legal fees, settlements, and the costs of repairing your professional reputation.

Essential Coverage Breakdown for Consultants

Beyond the basics, there are a few other tools you should have in your kit to ensure you can recover quickly from a loss:

• • Professional Liability (Errors & Omissions):
    One common risk you face is the potential for unintentional mistakes in your advice. This coverage is specifically designed to protect you against claims of negligence, errors, or omissions. It covers your legal defence costs, settlements, and damages awarded to clients by the courts.
  • General Liability (CGL):
    This protects you if an accident causes bodily injury or property damage to a third party. For example, if a client is injured while visiting your office, you could be held liable for medical expenses. CGL also covers claims arising from the use of your premises and business operations, including “tenants’ legal liability,” which is often a requirement when leasing office space from a third party.
  • Property Insurance:
    This protects your physical assets, including equipment, furniture, and any improvements you’ve made to a leased office space. It covers losses from fire, theft, vandalism, or natural disasters, so you can replace your tools and get back to work quickly.
  • Business Interruption:
    If a covered loss (like a fire) makes it impossible to operate, this coverage handles your lost income and fixed costs. It helps you cover rent, mortgage payments, and employee salaries during the period of interruption so you can focus on recovery without a total financial setback.
  • Cyber Liability:
    With an increasing reliance on digital systems, the risk of data breaches and cyber-attacks is rising. This insurance helps protect you from the financial consequences of a breach, covering the cost of data recovery, legal fees, and notification to affected parties.

The Risk Landscape: Canada

Canadian businesses face a unique set of challenges that differ from those of their global peers. According to the latest Allianz Risk Barometer findings, while Cyber Incidents and Business Interruption remain the top threats worldwide, Canada has seen a significant shift in its local priorities.

Local Insights: Saskatchewan’s Market

Saskatchewan’s insurance industry is currently at a crossroads, with localized dynamics making it a distinct landscape compared to other provinces. For consultants operating here, this creates both challenges and opportunities as the market adjusts to new claim volumes.

Market Insights for Professional Services

The 2025 Stats Guide highlights a 34.4% surge in Liability and Surety revenue, signalling that businesses are increasingly prioritizing risk transfer in a litigious, economically volatile environment. For consultants and professional service providers, this underscores two critical needs:

• Professional Liability / E&O: As liability claims rise provincially, ensuring your advice is protected against errors and omissions is no longer optional (it’s a foundational business requirement).
• Surety & Commercial Bonding: The rapid growth in surety revenue reflects a market in which clients and government entities are increasingly requiring bonds to guarantee contract performance and financial security.

Given localized pressures such as capacity constraints and a unique regulatory structure involving SGI, professional service firms should work with brokers who understand these “crossroads” in the Saskatchewan market.

Factors Influencing Your Premium

Real-World Claims Example: