There is no difference between the two in Canada. Professional Indemnity Insurance is a term that is more popular overseas. In Canada, the same coverage is provided by professional liability, also often referred to as errors and omissions insurance or E&O. In some industries, such as medical services and law, it is also referred to as malpractice insurance.
No. Professional indemnity only covers losses to third-parties caused by errors or omissions in your advice or service. Your own tools and equipment will not be covered under such a policy. If you own expensive tools and equipment, consider adding Contents Coverage to your business insurance policy.
Malpractice insurance and professional indemnity insurance provide the same coverage. In some industries, such as law and medical services, malpractice insurance is a more common term than professional indemnity coverage. Regardless of what you refer to it as, professional indemnity/malpractice insurance is an important coverage for businesses that provide a service or advice.