Insurance For Credit Reference Services/Bureaus

Credit reference services or bureaus have a lot of responsibility, which leaves plenty of room for error. Among these responsibilities, credit bureaus must handle and manage large data that include consumer information. Most of this information is stored in online databases, making it vulnerable to cyber crimes. If at any time one of these databases is breached, all of the information stored in it will be stolen. While there are only a few Canadian companies that have had their databases breached, the damages are extensive.

Credit reference services are responsible for gathering and maintaining credit records of all Canadian consumers. Every time a consumer applies for credit, the lender will request a copy of the customer’s credit report. This information is available only through credit bureaus. If at any time, the credit bureau provides a lender with the wrong information, they will be at risk of a negligence claim or civil lawsuit.

Professional liability insurance or PLI insurance protects credit references services from suffering a major financial loss associated with negligence claims and civil lawsuits. Depending on the coverage amount, the insurance may cover all litigation fees, settlements or monetary judgments related to the case.

Errors and omissions insurance is a requirement for all credit reference services operating in Canada. The coverage amount will depend on the level of exposures and risks. To determine the monthly premium, you will need to contact a credit bureaus professional liability insurance broker. It is recommended to combine professional liability insurance with commercial general liability insurance (CGL) to be fully protected.

Additional Coverage Options

When it comes down to it, all credit reference companies, professional liability insurance can help cover expenses related to third-party negligence claims and civil lawsuits. Knowing your risks will prompt you to immediately get covered. And, may even prompt you to acquire additional insurance coverage.

General Liability Insurance

CGL, also known as business liability insurance, protects credit bureaus in the event of property damage, physical injury, advertising and personal injury that occur as a result of business operations. If your company is sued for slander or libel, commercial liability insurance will kick in and help prevent a major financial loss. If you are familiar with civil lawsuits related to negligence, you probably know that they do not often offer a favorable outcome for businesses. However, the outcome will be more favorable, if you are fully covered by a quality CGL policy.

Commercial general liability insurance will also cover part or all of your litigation fees. You should know by now that civil litigation attorneys in Canada can charge between $150 and $250 an hour for their services. Even though your credit bureau is profitable, it will be difficult to move forward after suffering such a loss.

CGL Insurance Limit Recommendations – $500,000 per claim/$2,000,000 aggregate

Cyber Insurance

Most Canadian credit reference bureaus utilize the Internet for business purposes. From communicating with consumers and businesses to receiving, gathering and retaining data, all of these tasks can be done much easier online. While the Internet offers convenience to credit bureaus, conducting business online can also be very risky. Hackers work around the clock to obtain consumer information illegally. If your network or database is vulnerable to cyber hacks, your company will become the hacker’s next victim. Cyber insurance will help protect your company from financial loss associated with third-party negligence claims and civil lawsuits. Without this insurance, you may be forced to pay millions of dollars out of pocket.

Cyber Insurance Limit Recommendations – $100,000 per claim/$1,000,000 aggregate

Commercial Property Insurance

Owning and operating a credit bureau is a lot of responsibility. And, one of these responsibilities is protecting your company from financial loss due to damage sustained during a natural disaster. Commercial property insurance is a requirement for all credit reference services operating in Canada.

Commercial Insurance Limit Recommendations – $100,000 per claim/$2,000,000 aggregate

Cost of Insurance

  • Professional Liability Insurance – $40 per month, depending on the coverage amount
  • Commercial General Liability Insurance – $60 per month, depending on the coverage amount
  • Cyber Liability Insurance – $12 per month, depending on the coverage amount
  • Commercial Property Insurance – $15 per month, depending on the coverage amount

Please feel free to contact our office to request a free quote and learn about how to get business insurance. All this information is also available through our website.

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Other professions we also provide insurance for:

Academic Testing Centres
Accident Investigation
Accident Prevention Consultants
Accountants
Actuaries
Adjusters
Adoption Agencies
Advertising
Advertising Agencies
Advertising Agents & Services
Aerial Mappers
Agents
Agrologists
Agronomists
Alarm Monitoring Services
Allied Health Professionals
Alternative Dispute Resolution Firms
Alternative Energy
Answering Services
Anthologist
Anthropologist
Appraisers
Arbitrators & Mediators
Arborists / Tree Surgeons
Archaeologists
Architects
Architects & Engineers
Architectural technicians and technologists
Associations
Attorneys
Auctioneers, Auction Houses
Authors
Bailiffs
Blueprint & Photocopy
Boat Registrars
Bookkeepers
Broadcasters
Building Designers(Bill 124)
Business Brokers/Managers
Business Consultant
Business Enterprise Agencies
Business Training Courses
Cabling Designers
Camera & Photo Supply Stores
Careers Advisory Service
Catering Consultancy
Cereal Growing Advisors
Chambers of Commerce & Trade
Charities
Chiropodists
Chiropractors
Civil engineers
Claims Adjusters & Administrators
Collection Agencies
Commercial Printer
Communication Consultants
Company Formation
Company Search Agency
Conference & Event Management
Conference Facilities & Services
Conservation Consultants
Conservation Organizations
Consultants
Consumer Organisations
Contest Managers
Contractors Accountants
Convention Planners
Copywriters
Counselling & Advice Services
Court Reporters
CPA/CMA
Credit Reference Services/Bureaus
Custom House Broker
Customs & Forwarding Agents
Data Processing Services
Database Managers
Day Spas
Decorators – Interior
Dental Laboratories
Designers
Dieticians (Consulting)
Directors
Directors and Officers
Documentary creators
Employment Agencies
Employment Agencies/Recruiters
Employment Placement Agencies
Energy Audits & Assessments
Engineers
Environmental Engineers
Event Planners
Excess & Umbrella Liability
Filmmakers
Fitness Clubs
Foreign Legal Consultants
Holistic Professional
Home inspectors insurance
Immigration Consultants
Independent Contractor
Industrial Designers
Information Technology
Interior Designers
IT Contractor
IT Specialist/Technician/Programmer
Journalists
Lawyers
Lawyer’s Excess Professional Liability
Long Term Care
Management Consultants
Mediators
Medical Clinics
Medical Devices
Medical Professionals (Malpractice Insurance)
Medical Related
Medical Student Malpractice Insurance
Mortgage Brokers
Multimedia designers
Naturopaths
New Media
Occupational Health and Safety Consultants
Paralegals
Photographers
Placement Agencies
Podiatrists
Private Investigators
Process Servers
Product Designers
Professional Entertainers
Professional Organizer
Professionals Liability
Project Managers
Property Managers
Publishers
Publishers and Printers
Quality Control Consultants
Recruiters
Recruitment and Employment Agency
Recruitment Consultants
Research & Development
Roofing Consultants
Safety Engineers
Service Organizations
Solar & Wind Farm Engineers & Consultants
Spa Package
Structural Engineers
Sub-Contractor
Surveyors
Tax Prepares
Technology Companies
Therapist Professionals
Town / Urban Planners
Training Providers/Trainers
Translators etc.
Travel Agencies
Travel Agents
Travel Agents, Tour operators
Web Designers
Web-Site Designers
Workplace Engineers & Consultants