Are you aware of the fact that Ontario business owners are sued regularly by unsatisfied clients? In some cases, the client might have been negatively impacted by a mistake made by the company. Alternatively, there is a possibility that the business owner simply ran into a disgruntled individual, who frequently files frivolous lawsuits. Regardless of the situation, it is downright imperative for Ontario professionals to obtain a sufficient amount of E&O insurance. Below, you will learn how to get the right amount at the right cost.
Your Employee Base
As a business owner, you are responsible for each and every one of your employees. If one of your employees makes a mistake, that problem will actually come back on you and impact your business. Companies with a larger number of employees have a bigger risk than others. If you only have five or ten employees, your risks will be minimized. Insurance companies, such as Intact Insurance, understand this wholeheartedly. In fact, many of the biggest Ontario insurance providers will charge you more, if you have a larger number of employees.
If you have more employees, your risks will be elevated. Therefore, you should definitely obtain additional coverage.
Consider Speaking With A Broker
When attempting to obtain E&O insurance, you will have several options. You can go directly to one of Ontario’s insurance providers, such as Premier Marine, Aviva, and Intact Insurance. This is generally the most convenient and cost-effective solution. Alternatively, you may want to consider speaking with an insurance broker at www.liabilitycover.ca. A broker will charge you an additional fee, but their services may be able to help you get E&O insurance at a discounted price. Just make sure you choose a broker that has a lot of experience in your respective industry. With their assistance, you’ll be able to get a better policy at a more affordable cost.
Getting Quotes
Another thing to remember is that all insurance companies will offer different prices. And of course, your costs will depend on a handful of factors, including your history and your employees count. Don’t speak with Llyods of London and sign up right away. Instead, you should obtain at least three or four quotes. Carefully scour over the policies and quotes provided by each of these insurance providers. While the lowest cost might be enticing, you should remember to find a middle point between low cost and maximum coverage. Nonetheless, shopping around and getting multiple quotes will prove to be very helpful.
Worldwide Coverage
Thanks to the Internet, professionals can extend their services to other provinces and countries. Many service providers will offer their services to American and Canadian consumers, giving the opportunity to score more contracts. However, the more contracts you are working on simultaneously, the higher the risks will be of making a minor or major error.
Errors and omissions insurance will cover all the services a professional performs in Ontario, where their headquarters is located. While this is a great advantage, it still leaves the professional open to potential lawsuits, when working in other territories or countries. Luckily, you will have the option adding additional coverage benefits to the primary errors and omissions plan. The worldwide coverage is a necessity for service providers that often work out of their jurisdiction.
The errors and omissions worldwide coverage will protect against claims that are filed in the United States or Canada. This coverage will definitely give you peace of mind, when you are extending your services across the border.
Coverage For Temporary Staff
As your company grows, you will be forced to add more staff and other employees to take on the extra workload. A growing company is always a good sign and the owner is always open to adding additional employees. However, there may come a time, when the owner only needs to hire temporary staff. What most people do not know is the professional is just as responsible for the temporary staff as the permanent employees.
The initial errors and omissions insurance policy may not cover the temporary staff. Some insurers will offer this coverage, as well. Do not stop until you find an insurer that is willing to cover both your permanent and temporary staff members.
Considering How Exposed You Are To Risk
When considering how much error and omissions insurance you need, you must consider how exposed your company is to risk. Some companies are a much higher risk than others and must seek the appropriate coverage. Some individuals might also be at risk of much costlier lawsuit than others. For instance, take a heart surgeon as compared to professional trainer. A professional trainer might make a mistake that causes his or her client to injure a certain part of their body. On the other hand, if a heart surgeon makes a mistake it can cause his or her client to lose their life, which will have more sever repercussions.
An insurance agent should be able to assess your field of business and provide some advice on the risk linked to the field.
Know Exactly What Error And Omission Insurance Coverage is
While error and omissions insurance is a great thing to have, unfortunately it does not protect you against everything. E&O insurance is only designed to protect you from financial losses that your customers experience from accidental mishaps on your part. If you are at risk of other potential liabilities outside this field, then you are going to need additional coverage. We recommend you read our article about which professions require or may benefit from E&O coverage.
For instance, error and omissions insurance will not protect you if a customer suffers an injury, while he or she is on your property. Error and omission insurance also does not protect you against claims that are filed by your own business associates.
