Corporate training is the process of teaching professionals how to build their skills. Of course, the job duties are much more in-depth than just training future corporate leaders. In fact, these professionals have a long list of responsibilities, starting with the development of a new corporate training curriculum and ending with a professionally trained corporate worker.
With endless job duties, it is easy to see why corporate trainers have so many risk exposures. Sometimes the $50,000 plus annual base salary is not enough to make up for all the stressors involved in corporate training. Even so, most of these professionals love what they do and would never agree to do anything else.
To offset a large number of risk exposures, corporate trainers seek full financial loss protection like Professional Liability Insurance (PLI). What is PLI insurance coverage? How can PLI protect professionals and companies in high-risk industries, such as corporate training? Is PLI really worth it? Find the answers to these questions and much more in the content provided below.
PLI – What Is It?
PLI is a type of liability insurance. The difference between PLI and other liability insurance policies is its main purpose – professionals. PLI was specifically designed to protect professionals from financial loss associated with negligence claims and lawsuits.
Negligent acts associated with financial losses are covered under most core PLI policies. It is crucial to note, negligence is not intentional, but it is a careless or reckless behavior by a professional.
When professionals like corporate trainers commit negligent acts, they did not set out to do it on purpose. But, once the negligent act has been committed, there is no turning back for all involved parties.
PLI – When Is The Effective Date?
Once your PLI application is approved, a ProfessionalsCoverage agent will discuss the effective date with you. There are several factors that determine the effective date. These factors include preference, need, legalities, and protocol.
Some Canadian insurers will push the PLI effective date back by several days or weeks. This is normal, so do not become concerned when your policy does not go into effect for several days or weeks.
Now, it is possible to push the effective date forward through an oral or written request. If you are concerned about your risk exposures due to be uninsured, do not hesitate to speak with your designated ProfessionalsCoverage agent. It very well may be possible to push the effective date forward to accommodate your coverage needs.
If this is your first professional liability insurance policy, it is possible the effective date needs to be immediate. A ProfessionalsCoverage agent can help you move the date forward to ensure you are fully covered right from the get-go.
When Is PLI Activated?
Professional liability insurance is not automatically activated on the effective date. Instead, the policy is manually activated when the policyholder is deemed at fault for a negligent act. For example, immediately following the execution of a new corporate training program, it was discovered to be faulty. Was this the fault of the corporate training firm or the client? This is not a cut and dry answer because only a thorough investigation will determine which party is at fault.
The investigator will access several factors, including the party responsible for the development and implementation of the new corporate training program, recent testing procedures, and what technology was utilized in the development. All of these factors will help the investigator determine which party is responsible for the mishap. It is highly likely, the corporate training firm is the responsible party, but again, this will only be determined through an extensive investigation.
As far as the activation of your new professional liability policy goes, this will be determined by you and your insurer. A claim must be filed against your PLI policy to initiate the activation. From here on out, the insurer will oversee the claim process.
Regardless of which type of negligence issue you are facing, the PLI policy will not activate without a claim. A claim will warrant an immediate investigation to determine if you are at fault or the client filed a frivolous complaint against your corporate training firm.
Errors & Omissions (E&O) – Does It Cover Damaged Physical Assets?
Corporate training firms rely on the latest technologies, techniques, and processes to stay one step ahead of their competitors. These necessities pave the way for up-and-coming corporate trainers, allowing them to provide advanced training courses not offered by any of your biggest competitors.
Mishaps can oftentimes lead to property damage. For example, a corporate trainer is amid a training course when a negligent mishap resulted in a damaged projector. The mishap was only minor but great enough to cause a major problem. The mishap could have been prevented if only the corporate trainer had taken the time to perform a 5-minute testing technique prior to the start of the training course. Why did the corporate trainer skip the routine 5-minute testing procedure? Only the responsible party can answer this question.
An E&O claim will not offer any financial protection to either party. If the projector belongs to the corporate training firm’s client, the E&O insurance policy will not cover the replacement. The policy will not contribute one cent to the replacement costs, regardless of the movie projector owner.
Now, if you are covered under a general liability insurance policy when the accident occurred, you may be protected from financial loss.
If the general liability claim investigation reveals the party at fault is the corporate training firm, the policy will kick in and cover the cost of a replacement. The percentage of the monetary damage will vary depending on the amount of coverage. If the policy offers full financial protection in this case, the insurer will issue a check to the client for the full replacement price. If the policy offers financial protection of 99 percent or less, the payout will only cover that percentage of the full replacement cost.
When the general liability policy does not cover 100 percent of the claim, the corporate training firm will be responsible for the remainder.
General Liability Insurance – Does It Cover Third-Party Bodily Injury?
General liability insurance covers bodily injury claims. For example, a client’s employee was injured during a corporate training course. The injury was a fractured finger that warranted a visit to the local emergency room. But, the treatment did not stop there.
The injured employee underwent surgery to repair joints in the injured finger. The operation was followed by six weeks of physical therapy. The injured worker was eventually cleared to return to work, but there was no turning back for the corporate training firm, the client, and the injured worker.
The corporate training firm was forced to file a claim against its general liability policy, initiating an investigation by the insurer. The claim process is extensive and thorough to ensure validity on all levels.
If the insurer determines the claim is legitimate, the employee’s medical bills will be covered. The percentage of coverage will vary from one general liability policy to another.
If the corporate training facility owner is injured during the same mishap and has to go to the emergency room for treatment, the general liability insurance will not offer financial protection in this case.
PLI – Protects Against Negligence Claims
PLI policies kick in immediately following a valid negligence claim. When clients file negligence claims against professionals, they oftentimes ignore the potential repercussions. All negligence claims, big and small, leave devastation in their path, but only for the corporate training firm. The client filing the negligence claim will have suffered some type of financial loss at the hands of the corporate training firm.
PLI policies do not include third-party bodily injury coverage. If you believe this type of coverage should be included in your PLI policy, the solution is general liability insurance. Many professionals, including corporate trainers oftentimes, combine several types of insurance coverage into a single policy to ensure full financial protection against negligence claims.
ProfessionalsCoverage – Delivering Quality Liability Insurance Policies To Canadian Professionals
ProfessionalsCoverage is an insurance expert, specializing in general and professional liability insurance policies. As a licensed corporate trainer, it is your responsibility to protect your clients from unexpected negligent acts. Regardless of how long you have been in the corporate training industry, negligence is not out of the question. In fact, many Canadian veteran corporate trainers have committed negligent acts, resulting in a financial loss for their clients.
Professional liability combined with general liability offers full financial protection against third-party claims and lawsuits. Medical claims alone in Canada have tallied up to millions of dollars each year. Getting PLI coverage is the best decision you will ever make.
Even though you are a licensed professional, it does not necessarily mean you know the ins and outs of liability insurance. In fact, most professionals openly admit they know nothing about Canada’s extensive liability insurance regulations.
Contact our office to be connected with a liability insurance expert. Whether you only have a few unanswered questions or need help customizing a liability policy for your corporate training firm, ProfessionalsCoverage is only a phone call away.
Corporate Training Disability Insurance
You biggest asset in life is your earning ability. If you are unable to work, you will need to rely on either your savings or borrow money to sustain your lifestyle. When these unfortunate circumstances occur, dependents and spouses are also impacted financially and emotionally.
Disability insurance coverage will provide you a monthly income benefit, usually totaling 70% to 80% of your income, when you are unable to work for a period of time due to injury or illness.
Types of disability insurance
- Long-Term Disability Insurance (LTD)
- Short-Term Disability Insurance
- Key Person Disability Insurance
- Self Employed Disability Insurance
- Mortgage Disability Insurance
- Temporary Disability Insurance
- Supplemental Disability Insurance
Need coverage in effect? Compare the market!
FAQ before purchasing Corporate Training Liability Insurance
- How much professional liability insurance do I need?
- How do I get a liability insurance policy?
- What does professional liability insurance cover?
- What is the difference between claims made & occurrence form of coverage?
- When will I need to be insured?
- What other professions need this type of insurance?
Other useful posts you should also read
- Canadian insurance companies that provide professional liability insurance
- How does the claims process work if I get sued because of my professional services?
- What is the cost of professional liability insurance?
- How do I apply for a professional liability insurance policy?
- How do I qualify for coverage as a professional service provider?
- What is the purpose of getting insured as a professional?
- How long will it take to get an insurance quote for my business?