Unfortunately, E&O insurance is not the perfect solution to your problems. After all, your Ontario company can run into far more problems than you could ever imagine. Errors and omissions insurance is still a necessity but it is not going to cover you from all potential problems. For instance, it is not going to offer protection from illegal acts, general liability, employee lawsuits or injuries, and property damage. If something was done intentionally, your E&O insurance isn’t going to help.
You still need E&O insurance. If you do not have it, you’re going to get regret it in the future. However, you can work with ProfessionalsCoverage to find a policy that will provide you with the coverage you need. Below, you will learn more about the things that are not covered by errors and omissions insurance.
Sadly, a lot of business owners are going to experience problems. There is a good chance that you know a Canadian company that is currently struggling to stay afloat. Some business owners aren’t willing to let things fall apart. They’ll do everything in their power to keep their business up and running. They might even do things that are going to hurt their customers or that might be considered illegal.
For instance, you may begin creating counterfeit money. You know that you can keep the customer’s cash and give them counterfeit money in return. It is illegal and you know it. Nevertheless, you want to make keep your business healthy. This is a big mistake. This might keep your business going for a bit longer. However, it is going to come back to haunt you in the future.
This is illegal and it is going to tarnish your reputation. Obviously, your insurance policy is not going to protect you in this type of situation. If you intentionally harmed the client, your insurance is going to be voided.
As mentioned above, you were using counterfeit money to boost your revenue. Your customers paid real money and you gave them counterfeit money as change. This is a serious mistake on your end and you’re going to pay dearly for your mistake. You may end up spending time behind bars for your crimes. Simultaneously, your business is going to be ruined. Your E&O insurance is going to be voided as soon as it is confirmed that you did something illegal. Illegal activities will never be covered under any policy.
You’ve hired a good secretary. That individual goes above and beyond to help. They help you take out the trash and clean up the store when it has closed. At some point, she is walking through the store and experiences a fall. The floor was wet and that led to the fall. Your friend and employee is going to be in the hospital for a few days. She might even have to go through a surgery. Unfortunately, your E&O insurance isn’t going to help you. It won’t cover this type of expense.
However, you can still shield your business. You just need to obtain a workers’ compensation insurance policy. This will protect you and your clients.
Another thing to note is that E&O insurance is not going to protect from general liabilities. If you’re running a restaurant, you know that customers are going to be coming and going. You may mop the floor but forget to put out a sign. The customer rushes inside and goes down to the ground before you know it. They’re not fatally injured but they’re going to in the hospital. That customer is going to file a lawsuit against your company.
Your E&O insurance isn’t going to help in this type of situation. Instead, you will need to rely on general liability insurance. This type of insurance is sometimes referred to as slip and fall insurance. It is there to shield your business from claims of bodily injuries, property damage, and advertising injuries from third parties. To protect your business to the fullest, you need a combination of E&O insurance and general liability insurance.
Disputes With Employees And Potential Employees
Canada is a very friendly place. Nevertheless, there have been some serious discrimination problems in the past. It might not have anything to do with your business but people may not know this. For instance, you might be searching for a new employee. You receive visits from several potential candidates. One tells you that is pregnant and may need time off in a few months. You decide to pass on her. There is always a risk that she is going to say that she was discriminated again because of her pregnancy.
This could result in a discrimination lawsuit being filed against you and your business. Canadian errors and omissions insurance is very helpful. However, it is not the solution to this specific problem. Instead, you should acquire employment practices liability insurance. This will protect you and ensure that you do not experience revenue loss due to such problems.
Now if this person is not an employee of this company, you need to explore E&O insurance for independent contractors. The idea is always to protect your interest first as if the employee is not part of your company, they still need to be insured for loses they cause or for claims that drag your business into court.
Damage To Property
Finally, ProfessionalsCoverage would like you to know that errors and omissions insurance is not going to cover property damage. Your restaurant is making good revenue. However, you forget to upgrade the plumbing last year. You knew it needed to be done but didn’t have time for it. Now, you’re dealing with a flooded restaurant and the water is starting to ruin everything inside. You cannot let your customers enter your business because the floors are covered with water. Soon, mold will begin to develop. Is errors and omissions coverage going to protect you in this type of situation?
The answer is no. Again, E&O insurance is good but it is not an ultimate solution. You’ll also need property insurance. As the name suggests, property insurance is going to protect from fires and floods to your property. It can also cover inventory and supplies. The insurance generally covers theft and fire. It may cover some but not all weather events. With that being said, you should consult with your insurance provider to find out what your property insurance covers.
Buying A Combination Of Policies
You have many risks to worry about. Sadly, a single insurance policy is not going to cover all of these risks. Therefore, you need to buy a combination of policies. This is the only way to protect your business to the fullest. Get in touch with the experts at ProfessionalsCoverage to get the coverage that will put your mind at ease. We can also provide you with a free quote so you’ll know how much you’re going to pay monthly. Do not delay! You need E&O insurance today!
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 can I lower my E&O insurance cost?
- How does E&O insurance for independent contractors I work with work?
- 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?