There is simply no denying that errors and omissions insurance is essential for any Ontario-based business. Whether it be small or large, you always want to do everything within your power to protect your company. And, that is exactly what E&O insurance can do. Of course, it can protect you from everything lingering in the competitive business world, but it can shoulder a major portion of the protection.
That being said, there is also no denying that these policies are expensive. You combine this with your other monthly or annual business expenses and it will be more than easy to see how so many businesses are getting financially in over the heads. Going uninsured is certainly out of the question and it might even be harder to cut costs in other areas. That being said, you don’t have to hang your hat just yet because there are several ways that Ontario business owners can go about reducing the costs of their errors and omissions policies.
Always Get Multiple Quotes
Most people have never truly learned the art of shopping around. You would be surprised to learn just how many people go out and by the first or second car that they come across without even considering other options. Sure, there is a chance that you might make the purchase of a lifetime, but really what are the chances? And, what are the chances that you are getting the very best deal out there? Slim to none. This is why it always pays to shop around. When shopping around, you will not only get more bang for your buck, but you will make a more informed decision.
Just imagine how much you spent on that small sedan when you could have really used that minivan. Do not let this happen to your business. There are a number of insurance companies that all provide different errors and omissions insurance policies. Some offer customized options for specific industries while others do not. Getting multiple quotes can help you from overspending as well as help you make a better overall decision.
Choose Someone That Specializes In Your Industry
You just learned above that some insurers specialize in certain industries. These are the individuals that you need to be doing business with. You simply wouldn’t visit an eye doctor for complaints of a toothache, would you? No, and you want to approach your business’s insurance needs in the same manner. Working with individuals that are familiar with your industry will not only help you save more money, but it could help ensure that you are protected to the fullest. Specialized agents might even be able to see risks that you didn’t even know existed.
Clean Up Those Claims
This one probably sounds obvious and it probably makes it sound like you don’t even need E&O insurance in the first place. Why would you need coverage if you could avoid all these cases in the first place? You wouldn’t, but what are the chances that you can avoid all these claims? Not very good. There are just some folks that you will not be able to please. It doesn’t matter what you do. That being said, most folks are pretty reasonable.
Any time you can work with a customer or client to prevent a claim, you should without a doubt go ahead and do so. You never want to put your business in a situation where it is relying solely on your E&O policy for protection. This is because the more claims you amass, the more your premiums will rise. Not only this, but you could start to be seen as a high-risk company to the insurer. This is why it is best to approach your E&O policies like you would approach your traditional car insurance policies.
It is something that you need and cannot go without. It is also something that will come in handy in the event of a major disaster, but if you just set and amass a number of little claims it will only end up costing your business more money in the long run. Doing this might even put you in a situation where you are deemed a high-risk company. Underwriters are very granular when it comes to writing a risk and they make sure to add exclusions that may have a high risk of loss based on their internal data.
Knowing this information will help you dodge claims that could potentially be detrimental to your future.
Above all, being a high-risk company not only increases your monthly premiums, but it might prevent you from scoring protection in the first place.
Other frequently asked questions before buying an E&O Insurance Policy
- What does an errors and omissions insurance policy cover?
- Does my business require errors and omissions insurance coverage?
- What does errors and omissions insurance cost?
- How does E&O insurance for independent contractors I work with work?
- What does an E&O Insurance policy not cover?
- Why do some of my clients require that I have an E&O insurance policy in place prior to working with me?
- What is a certificate of errors and omissions insurance?
- What if I want to cancel my E&O insurance coverage?