Private Investigator Insurance in Canada

In Ontario, private investigators are licensed under the Private Security and Investigative Services Act, 2005 (PSISA), administered by the Registrar of Private Investigators and Security Guards. The Act defines a private investigator as a person who performs work for remuneration that consists primarily of conducting investigations to provide information, such as information on a person's character or actions, business or occupation, or whereabouts.

There are two layers of licence. An individual needs a licence to act as a private investigator, and must either be employed by a licensed business entity or registered employer, or be the sole proprietor of or a partner in a licensed business entity. A business that sells investigation services needs its own business licence. Individual licences run to the licensee's second birthday after issue and renew for two years. Agency licences issued or renewed on or after July 1, 2021 run for three years.

Some people who investigate are outside the Act, including lawyers in the practice of their profession, licensed insurance adjusters acting in that capacity, and people whose work is primarily credit reporting or employment and insurance screening. Other provinces license investigators under their own legislation, so check with your provincial registrar if you work outside Ontario.

Section 30 of the PSISA says no person may hold a licence to sell the services of private investigators or security guards unless insured by an insurer licensed under Ontario's Insurance Act, for the kinds of liability and amounts prescribed. Proof of that insurance is part of the licence application. The prescribed amount is in O. Reg. 462/07: every licensed business entity must carry general liability insurance of at least $2,000,000.

That regulation has been amended. From January 1, 2027, the requirement will read as at least $2,000,000 for all claims under the insurance in respect of the same occurrence, which ties the minimum to each occurrence. Check that your limit is written per occurrence and that the certificate you file shows it that way at your next renewal.

The mandatory cover is general liability only. It is a floor for keeping the licence, not a program. It does not address the claims investigators most often face: allegations about how information was gathered and what was said about the subject.

Investigators create risk in three places: in the field, in the report and in the files. Each needs its own coverage, and the gaps between general liability and professional liability are where PI claims fall through.

The scenarios below are hypothetical, built from the exposures underwriters ask about. They show why one policy is rarely enough.

Surveillance is lawful work, but the line is narrow. Ontario courts recognize a privacy tort called intrusion upon seclusion, first recognized in Jones v. Tsige in 2012 and restated by the Court of Appeal in Owsianik v. Equifax Canada Co. It applies where a defendant intentionally or recklessly intrudes on the plaintiff's private affairs without lawful excuse, in a way a reasonable person would regard as highly offensive, causing distress, humiliation or anguish. Damages can be awarded without proof of financial loss.

Trespass is the other field risk. Under Ontario's Trespass to Property Act, a person who enters premises where entry is prohibited, or does not leave immediately when directed by the occupier, commits an offence with a fine of up to $10,000. Insurance can defend a civil claim, but it does not pay fines.

An investigator's product is a statement about a person. Workplace harassment reports, fraud investigations, background checks and infidelity files all reach conclusions that the subject may dispute, and those reports are read by employers, insurers, lawyers and courts. A report that states a conclusion as fact without support can lead to a defamation claim as well as an E&O claim from the client.

Write findings as observations with dates, times and sources, separate fact from opinion, and keep distribution to the people who need the report. Media liability or defamation coverage, sometimes added to E&O by endorsement, is what defends these claims. Firms that also publish, such as true-crime podcasts or social media content, need media liability written for that activity too.

The PSISA limits how investigators present themselves. A private investigator must carry their licence and produce it on request, and may not carry any other identification or symbol of authority. No licensee may falsely hold themselves out as providing services connected with police, and investigators may not use the terms detective, private detective, law enforcement, police or officer. Individuals convicted of an offence under the Act face fines of up to $25,000, a year in prison or both.

Firearms are tightly limited. Under O. Reg. 366/07, an individual licensee may use a firearm in providing private investigator or security guard services only if authorized to carry it under section 20 of the federal Firearms Act. Batons may be used only for defence and only if issued by the employer, and a licensed business entity must carry insurance for the risks of its employees carrying batons. Handcuffs must be issued by the employer, and cable or strip ties may not be used as restraints. Tell your broker about any of these, because most PI programs are underwritten on the basis that investigators carry none of them.

Mobile surveillance puts investigators on the road for hours, often in their own cars. A personal auto policy rated for commuting may not reflect that use, and a claim can be challenged if the insurer was never told. Commercial auto coverage, or a business-use rating on each personal vehicle, should match how the car is used, and agencies need non-owned auto cover for staff driving their own vehicles.

Case files are a privacy liability. Under the federal Personal Information Protection and Electronic Documents Act, an organization must report a breach of security safeguards to the Privacy Commissioner of Canada and notify affected individuals where it is reasonable to believe the breach creates a real risk of significant harm, and keep a record of every breach. Encrypt devices, limit who can access video, and set retention periods for closed files.

Insurers, law firms, employers and retailers that hire investigators usually set insurance terms in the retainer or vendor agreement. Expect requests for general liability and E&O at stated limits, commercial auto, and a certificate of insurance naming the client as an additional insured on the CGL.

Agencies that also provide guards should read our security company insurance page, because guarding adds bodily injury and use-of-force exposures.

Premiums are rated on what you investigate and how. Underwriters ask for revenue split by service: insurance claims surveillance, workplace and harassment investigations, litigation support, background checks, domestic and infidelity work, process serving and asset searches. Domestic files and covert surveillance usually rate higher than records-based work. They also ask about the number of licensed investigators, subcontractor use, provinces worked in, vehicles and drivers, any batons or handcuffs, claims history and your report review process.

Liability limits above the $2 million minimum, E&O and defamation cover, and commercial auto for several surveillance vehicles are the main drivers. Clean driving records, written surveillance protocols and report review by a second investigator all help.

Private investigators sit within our business and professional services practice. When you are ready, request a quote.