Moonlighting Risks: Protecting Your Professional Liability

In this episode of Tech Takes, guest host David Terlizzi and ProLink Insurance practice leader Allison MacLennan explore the growing trend of moonlighting among Ontario's engineering technicians and technologists, and the risks that can come along with it.

While economic uncertainty drives many to take on side work, often starting as simple favours for neighbours or small businesses, Allison warns that good intentions won't shield you from unexpected professional liability claims.

Tune in to learn the hidden risks of moonlighting and the essential strategies you need to protect yourself.

Have a topic you’d like to discuss or comments about the episode? Reach us at techtakes@oacett.org.

Transcript

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TECH TAKES: Episode 22

Moonlighting Risks: Protecting Your Professional Liability. 

David Terlizzi : 00:09 - 02:39

Hello and welcome to Tech Takes. I'm your guest host, David Terlizzi. You'd be amazed to know that with economic uncertainty lingering and many workers in Ontario, including engineering technicians, technologists, are exploring ways to supplement their income. I mean, aren't we all trying to get more of that almighty dollar? And did you know that side work can show up in ways we may not even think of as moonlighting? You may be helping a neighbor troubleshoot a mechanical issue, preparing drawings for a friend's renovation, or offering technical advice to a small business. Think about that. It may start as a favor, a quick question or small project and seem harmless. But here's the thing, when your professional knowledge, skills and advice are involved, especially when you're helping someone you know, the risk can be more significant than you might expect. And joining us to provide insights and to talk about those risks and how they could potentially outweigh the financial gains from your side hustle is Allison MacLennan, practice leader, engineering designers at ProLink Insurance, OACETT trusted insurance partner and part of our member benefit program. Allison in fact is an expert in proactive risk management strategies and has more than five years of experience in the commercial insurance sector. She also holds a Canadian accredited insurance broker and chartered insurance professional designations. Love that. And today we're going to dive into what moonlighting can look like for technicians and technologists where professional liability can arise and why, even with the best of intentions, and we all have them, good intentions don't necessarily protect you from a clan. I think the English writer Samuel Johnson said it best, the road to hell is paved with good intentions. So maybe a bit harsh of a quote for today's podcast, but maybe not. So because even seemingly simple arrangements can lead to disputes when someone relies on your advice at work and something goes wrong, we're talking about everything from property damage and project delays to financial losses. And you know what? In extreme cases, even safety concerns. So Allison MacLennan is here today to give technicians and technologists a practical guidance on how to reduce the risk associated with moonlighting and to take informed steps to protect themselves, their clients, and their professional reputations. Allison, welcome to the show.

Allison MacLennan : 02:39 - 02:43

Hello, David. Thanks for having me on Tech Takes.

David Terlizzi : 02:44 - 03:49

Our absolute pleasure. Now, Allison, let's face it. Some of us have skills beyond our day jobs that we'd like to use after nine to five. Some of us need a little extra cash flow. Having too much money is something no one's ever said. And others may be looking to gain experience or build their careers, whatever the reason. Side work is reality in today's marketplace. I think we've all seen it, yeah? And it's something we can't ignore. Understanding the professional liability that can come with taking on side jobs is important because what makes, what may start as a small favor or quick project could potentially turn into something much bigger. So listeners, grab your tea, coffee, or beverage of choice as you may want to take a few notes during today's conversation. And Allison, let's jump right into it and help OACETT members and others better understand the risk involved. So I got my first question for you today. Wonderful. Why is moonlighting an important issue for technicians and technologists to understand? Real simple for one to start.

Allison MacLennan : 03:50 - 04:44

Yeah, so it's an important issue for technicians and technologists to understand, because moonlighting can create personal and financial risks that are often overlooked. Moonlighting generally refers to using your professional knowledge and skills outside of your regular 9-to-5, whether that be to earn extra income or simply to help someone out. While these projects may seem small, informal, or even unpaid, they can still create significant liability. If someone's relying on your professional advice, expertise, or work, you can be held personally responsible if problems arise, such as property damage, delays, increased costs. As a regulated professional, courts typically hold you to the same professional standards regardless of whether there's an arrangement which was formal, informal, paid, or potentially unpaid. So that's why it's important to understand the risks and ensure that you have appropriate protection in place before taking on any work outside of your regular employment.

David Terlizzi : 04:45 - 05:07

Yeah, I get it. I get it. And I think some of our members right now probably dropped their drink of choice and said, what, what are you talking about? So, and that's interesting. So Allison, what kinds of side work, give some examples, you know, what kinds of side work might seem harmless, but could actually create professional liability for technician or technologist? Like what kind of work are we talking about here?

Allison MacLennan : 05:07 - 06:15

Yeah, so that's a great question. So side work can take many different forms that people might not immediately think of professional services. So it can look like home or office renovations, additions on a home, decks or other backyard fixtures. To give you an example of a claim that we had, so there was a CET that did a drawing for a friend's basement. They wanted to have it finished. So the CET completed the drawings for the finished basement. They were then handed off to the contractor to build. Then there was a sewer backup incident that occurred. So the homeowner sued the C.E.T. and claimed that they did not include the sewer backup valve in their design, which the client claimed that they asked. The C.E.T. claimed that this conversation never happened. So the C.E.T. had insurance and the insurance company paid the defense costs in the settlement, which was around $40,000. So this decision was ultimately come to because there was no proper documentation and it was more of a hearsay matter. And because the CET has that expertise that they thought that the courts would side in favor of the public. So even small jobs that you're helping a friend might ultimately come to a situation like this.

David Terlizzi : 06:16 - 06:40

Holy smokes, I didn't realize, that's a great example. So not to put too much fear in our members, but so Allison, so I guess the question is, where does the risk begin? So for example, you mentioned if an OACETT member gives technical advice, right? Takes measurements, prepares drawings, or makes a recommendation for a friend or neighbor, when could it actually become a professional liability issue?

Allison MacLennan : 06:41 - 07:38

Yeah, so the professional liability risk begins when someone's relying on your professional advice or services. So, for example, like you said, taking measurements, preparing drawings, making recommendations, or providing oversight. If a person acts on your advice and an allegation comes from what goes wrong, then that can ultimately result in a claim. A professional liability claim generally starts with three elements. So it's someone relied on your work, then they allege an error, omission, an oversight, and then they claim that it caused damage or loss. So working on smaller scale projects doesn't negate your reliability. 66% of claims against CETs are defense costs only, which means even if you did nothing wrong, you are responsible for defending yourself. And the average cost of a claim in 2024 was $110,000. So either you can handle that financial burden yourself or you can pass it along to your insurance company.

David Terlizzi : 07:39 - 08:05

Well, I think, I think those numbers really speak for themselves. Don't they? They're kind of eye popping when you think about it and you would never, you would never think that, you know, and it's, it's interesting. I'll tell you something else that I speak with a whole bunch of members and many, many members or people assume that their employees insurance. Okay. We'll cover them if something goes wrong, you know, with work they do outside their regular job. I mean, is that, is that really a common misconception and what should technicians technologists understand about their coverage?

Allison MacLennan : 08:06 - 08:58

Yeah, to your point, that is a common misconception that we have heard from members, that their employer's insurance will cover work done outside their regular job. In most cases, employer's coverages would only apply to authorized work performed during your 9-5. So even if you use your employer's software, resources, or tools to moonlight, their insurance will not cover you. I remember we did a webinar back in November 2025 where we discussed this and what it means to be covered and how it's very important even outside of moonlighting to ask your employer to make sure that your particular services that you are offering are one of the insured under their policy. because if something were to happen for a service that you designed or manufactured, that your name could be put in the lawsuit and you could be held personally responsible.

David Terlizzi : 08:58 - 09:16

So that's very interesting. Allison, look, no matter what the job is, mistakes can happen, let's be honest. So what are some of the biggest mistakes technicians and technologists can make when taking on side work, particularly when the arrangement is informal or involves somebody they know, like say a cousin?

Allison MacLennan : 09:17 - 09:57

Yeah, so one of the biggest mistakes is treating the work casually, because a client is someone you know. For example, like you said, your cousin. So homeowners or small business owners can be a little less sophisticated and knowledgeable in this area. That's exactly why they're seeking out the CET for their expertise. So when a homeowner gets told the construction costs are going to be tens of thousand dollars more than they expected, or there's going to be delays, it can quickly escalate. And even if you're their best friend, family member, neighbor, they're going to look for someone to pay those additional costs. Informal agreements can lead to real lawsuits, and because you are a professional providing advice or services, the courts are going to hold you to the highest standard in order to keep protecting the public.

David Terlizzi : 09:58 - 10:15

Okay, well, let's take it. Okay, I'll tell you what, Allison. I don't think we can stop moonlighting. It happens. It's reality. So, if an OACETT member is considering moonlighting, what practical steps should they take before agreeing to the work, you know, to really reduce the risk?

Allison MacLennan : 10:16 - 11:07

Of course, and I think moonlighting is a great opportunity. It is definitely something that we're not going to be able to avoid, but I think we first should start with a practical risk check. So number one would just be review your employee contract or your shareholders agreement. Make sure if there's any restrictions on outside work, conflicts of interest, any disclosure requirements they might have you do. And then second would be to use a proposal and attach a standard set of terms and conditions for the client to sign. Clearly define what's in the scope and then what's outside of the scope. And then make sure that you define your responsibilities and keep accurate documentation. Clients don't have the same level of knowledge as you do, so they might not understand what's realistic, the costs, the timelines, or what questions to ask. And then finally, obtain professional liability insurance that is appropriate for the services you plan to provide before the work begins.

David Terlizzi : 11:08 - 11:16

So Allison, what I'm hearing then clearly is contracts, contracts, contracts. I think people don't think about it, but no matter how small, maybe a ring contract would help.

Allison MacLennan : 11:17 - 11:26

Oh, of course. Yeah. And document everything. Emails, text messages as well. The more documentation you have, the better for everyone.

David Terlizzi : 11:26 - 11:34

And of course, in this contract, we're talking about probably having, it doesn't have to be 60 pages, but probably a defined scope of work. So it's pretty clear in your contract.

Allison MacLennan : 11:35 - 11:41

Exactly. Even if you can define what you're responsible for and what you're not responsible for, it really does help.

David Terlizzi : 11:42 - 12:00

That's great. I mean, I'm actually getting it, so I'm assuming most of our members should get it. So, I mean, what should OACETT members know about professional liability insurance for side work? How can having the right coverage provide protection, peace of mind, right? So, what should they know about liability insurance, if you know what I mean?

Allison MacLennan : 12:01 - 12:47

Yeah, so members should know that their employer's policy, like we mentioned before, will likely not respond to any of their moonlighting activity. So if they're doing this type of work, it's essential to make sure that you have the proper insurance policy in place. Insurance shouldn't be considered a sunken cost. It should be seen as an investment in your business. The same as accurate equipment, a reliable car to get you to job sites, up-to-date software. Insurance provides protection for yourself and your personal assets. It allows you to conduct business with confidence, knowing that if something were to happen, you'd be covered. No one's perfect, and baseless claims happen all the time. And having even the minimum limit amount is better than having no coverage. And through our online portal, you can get a quote in as little as three minutes, which will help give you peace of mind.

David Terlizzi : 12:49 - 13:25

Yeah, and I think as a benefit to members, we always try to make the process easy, which is important, because let's be honest, seatbelts, I'm talking about seatbelts here, I was just thinking, it's sort of like seatbelts, no one thinks about it, but when you really need it, it's there for you. And I think that's sort of what professional liability insurance does. I think, you know, just off the cuff, the good, bad and the ugly, do you, can you tell us some stories of some unfortunate cases where people didn't think they needed it, but unfortunately, this is the outcome. Sort of like a scary story to convince people the importance of having professional liability insurance. Do you have anything maybe you can glean to us? It's pretty exciting actually. I can bring the popcorn.

Allison MacLennan : 13:26 - 14:49

Of course, we do see a lot of claims come across our desk. An example that we had, we did have a client and this kind of goes back to making sure that in your terms and conditions, in your proposal, that you make sure you clearly define what's in the scope that you're going to take responsibility for and then what's outside of the scope. We had a claim that happened where there was not a clear, it was more of a gray area between what our client was responsible for and then what the actual client was going to take. It had more to do with an HVAC and the maintenance on it, but the maintenance wasn't being kept up as regularly as it should be, and the client alleged that our client should have been telling them and instructing them on how to use The machine before and then the actual owner of the building had let that maintenance go for so long. So there was an issue of more of a gray area on who was supposed to be the one responsible for doing that maintenance. And then it does result in a claim. So now there's an ongoing dispute between that. But we had to make sure that our client had proper documentation in place, if this was ever discussed, if this was in their proposal saying that they were going to do it or not, and it wasn't outlined in there. So there is an actual basis to this claim because our client did not say that it did not fall within their scope.

David Terlizzi : 14:50 - 15:20

Right. I get it. I do have another question, but I'm just off the cuff here. We all talk about the financial obligations. That's important. I'm just throwing it out there. I think there's, and it's not an exaggeration, there can be a mental health quotient to this. It's the stress of being sued or having something happening. I'm wondering if maybe you can speak to the fact that you know, not being mental health clinicians here, but of course there's a financial burden, but might be a mental burden too, a stress of being sued and having issues where if you had insurance, many, you know, a lot of this will be lessened. Does that make sense?

Allison MacLennan : 15:21 - 16:27

Oh, a hundred percent. I think that's a great point, David, because yeah, there is obviously the financial burden aspect of it, but it does really take a toll on your mental health when you receive that document in the mail, having your name on a lawsuit, I can imagine that would be quite frightening. especially if this is something that you're doing moonlighting where you kind of know that this is either someone that you know personally, it might be an acquaintance, this could be an existing client that you had, but just that fear and that mental load that's going to take on you if you don't have insurance in place, if you're taking that on just by yourself rather than reporting it to your broker and then having the insurance company step in and defend you, They have the expertise, they have the resources. This is not the first time they've seen this happen, but this may be the first time you've seen it happen. So it would really take a toll on your mental health. And for the investment in insurance, having that peace of mind and not having to fall back on your own financial resources would definitely help mitigate that mental health burden.

David Terlizzi : 16:27 - 16:43

You know what I'm thinking, Allison, too, is it makes sense if it's a neighbor down the street. I know it's a difficult conversation if it's a cousin or relative. From what I hear, regardless, you probably should consider something like that, a contractor, maybe a scope of practice, even if it's a relative, because you just never know.

Allison MacLennan : 16:44 - 17:20

Of course. The thing is with even if it's paid, unpaid, if there's a contract in place, it really helps in the event that there is a dispute or issues down the line and just having that protection in place for both yourself and the person you're doing work for because it can get into like a very icky disagreement, and especially if you are friends and family, you don't really want that tension there. That doesn't sound like a great idea. So if you can have this written contract in place, and these set terms and conditions, it kind of puts it on the contract rather than the people.

David Terlizzi : 17:21 - 17:48

It does, and I would argue it makes you look more professional, too. I think it might be uncomfortable, even if it's a close friend or whatnot. I think it brings it to a professional level by saying, look, I need this. It's to protect us both. So it'd be an interesting conversation to have. So, you know, Allison, as we wrap up, what's the one thing you want every OACETT member who is considering work outside their regular employment to think about before saying yes to that job?

Allison MacLennan : 17:50 - 18:24

Yeah, I would just say before saying yes, just ask yourself one question. If someone's relying on my professional expertise and something goes wrong, am I prepared to have the responsibility that follows? If the answer, if you're not sure about it, just take a step before accepting the work. Review your employment obligations, define the engagement in writing, document the project properly, and make appropriate choices for your insurance. Moonlighting is a great opportunity. It should be approached with the same professionalism and risk management standards as any other formal project you've worked on.

David Terlizzi : 18:26 - 19:44

Ah, no truer words have been said. Perfect, Allison. Listen, great advice. And listeners, here's the good news. You don't have to figure this out alone. As an OACETT member, you have access to ProLink through your member benefits program. That means access to insurance solutions designed specifically for engineering technicians, technologists, including coverage options for the side work we discussed today, even with your cousin. So to learn more, visit the members benefits section at OACETT.org or reach out to ProLink directly to talk through your situation at 1-800-663-6828. Actually, or by emailing designers@prolink.insure, that's I-N-S-U-R-E. Now, because at the end of the day, because the truth is this, the favor for a neighbor or side project for a friend shouldn't put your finances at risk, or your reputation, or your certification. A few informed steps now can save you from a world of trouble later. Allison, thanks so much for joining us on Tech Takes and sharing your expertise. Um, but before we end, uh, we are all human after all Allison. Uh, I like to ask her podcast guests, one final question. What do you do when you're not busily dealing with insurance? What do you do for fun?

Allison MacLennan : 19:46 - 20:11

I love this question, David. Thank you so much. So sports have always been a big part of my life. My parents put me in basically every single sport possible growing up, but soccer was really the one that stuck. I still play in a couple of co-ed leagues now, and I still also play volleyball. And then when I'm not playing, I'm watching. So one of my favorite weekend traditions is watching the English Premier League on Sunday mornings with my fiance.

David Terlizzi : 20:12 - 20:17

The English Premier League, I'm not gonna ask who is, okay, I've got to say, who's your team?

Allison MacLennan : 20:17 - 20:19

My team is Chelsea.

David Terlizzi : 20:20 - 20:38

All right, we were friends. Okay, so, well, that's all folks. Thank you for listening in. If you find today's episode helpful, share with a colleague, especially the one you know is doing drums for their cousin's renovation right now. And until next time, this is David Trulizzi for Tech Takes Podcast. Stay safe and stay covered. Until we talk next time.