Managing facilities for Canadian companies can be difficult. Since you work hard every day, you will be rewarded for your efforts. Your line of work is profitable but anything can happen. If you’re not careful, there is a risk that something bad is going to happen and it’ll cost your clients money. Will you be able to deal with this problem or will it lead to a lawsuit being filed against your facilities management firm? It’ll be difficult to know. You can’t gamble with your company’s future. Instead, you need to obtain facilities management insurance so you won’t have to worry about these risks.
This insurance is specifically designed for facility management experts. It’ll protect your company from a variety of risks. More about facilities management insurance will be provided below.
What Is Facilities Management Insurance?
First, you’ll want to learn more about facilities management insurance. You’ve likely heard about professional liability insurance. Well, you’ll find that professional liability insurance and facilities management insurance are the same. While it can be called many different things, you’re still dealing with professional liability insurance. You’ve likely heard it called facilities management insurance, errors and omissions insurance, and malpractice insurance.
Nevertheless, the important thing to know is that this insurance protects your company from lawsuits stemming from allegations of neglect and error.
What Is Covered By Facilities Management Insurance?
What can you expect from facilities management insurance? What makes it worth the cost in the long run? How will facilities management insurance protect your business? Facilities management insurance is different from general liability insurance because it protects from different problems. Professional liability is all about reducing your professional liability risks. For instance, there is a risk that you’re going to be accused of making an error that cost your client thousands of dollars or more.
You didn’t manage their facility property and your client paid for it. Now, they want you to pay for it. They’ve filed a lawsuit and you need to start planning for the upcoming trial. Facilities management insurance covers such problems. If you’re sued for neglect, error, or oversight, you’ll want to use your facilities management insurance to protect your company.
Why Does A Facility Manager Need Insurance?
Facility managers face numerous risks. Although you’ve worked cautiously to minimize the risks, you can’t eliminate them. You’ll always face risks and you need to understand this wholeheartedly. You need to be aware of your risks so you can take steps to protect yourself from them. Business lawsuits can cripple your business. If you’re not fully prepared, there is a risk that the lawsuit will lead to bankruptcy. Is this something you worry about at night? Why should you?
You need to have facilities management insurance so you no longer have to worry about these things. You can use this insurance to protect your company and give yourself added peace of mind. While it’ll cost extra, it’ll be worth it. Don’t leave your company exposed. Get insurance to decrease your company’s exposure.
What Are The Limits Of Facilities Management Insurance?
While facilities management insurance is helpful, it has some limits. As the policy holder, you’ll have the opportunity to adjust the limits to meet the precise needs of your business. This is very important since you’ll want to avoid leaving your company exposed. For starters, you need to know that facilities management insurance has two limits. This insurance has a per occurrence limit and an aggregate limit. You need to know what your policy’s limits are. The per occurrence limit tells you how much the insurance company will spend on a single claim.
If you have a $1 million per occurrence limit, the insurance company will provide $1 million for a single claim. Then, you will have an aggregate limit. This is the amount that you’ll receive overall. With a $3 million aggregate limit, you can get $3 million during the policy period. For instance, you can take advantage of 3 $1 million claims. It is still in your best interest to prevent claims from being filed against your company.
What Insurance Is Important For Facilities Management Firms?
Once you’ve signed up for facilities management insurance, you may believe that you have enough insurance. This couldn’t be further from the truth. It is a good starting point but you need more insurance. You’ll need to obtain several other insurance products to completely produce your firm. When working with your insurance agent, you should ask them which insurance is important to your company. In all likelihood, they’ll tell you that you’ll need general liability insurance, business interruption insurance, business contents insurance, and cyber insurance.
Building a comprehensive policy will ensure that your business is protected from anything that might go wrong.
GLI For Facilities Management
GLI or general liability insurance is a must for any facilities manager. During your work, there is a risk that you’re going to do something that leads to a personal injury. Your client might get hurt due to something you did. Also, you have to be worried that you’re going to damage someone’s property. Your clients want to be protected at all times. To give them the protection they deserve, you need to obtain general liability insurance.
This insurance gives your company the ability to protect its clients. If they’re injured or their property is destroyed, your GLI will take care of it. This insurance is not optional. It is a must.
Business Interruption Insurance For Facilities Management
Business interruption insurance is very important for people in your line of work too. You’re working diligently to ensure that everything is going well for your clients. However, you cannot forget about your risks at home. You perform many of your duties at your office. You use your office to study your clients and their needs. You use your computer to assemble a plan that will work well for their facilities. In addition to this, your clients likely visit you at your office. Will you be able to continue working and making money if your office building is destroyed?
There is a risk that you won’t be able to do that. Why take this risk? Sign up for business interruption insurance so you can deal with the problem promptly. With this insurance, you’ll be able to relocate to a new facility temporarily. This insurance will help pay your rent. You can also use business interruption insurance to make up for the money you’ve lost.
Business Contents Insurance
You need to obtain business contents insurance because you rely heavily on your equipment. You use computers, printers, fax machines, and other devices to serve your clients. You need this equipment. It is pertinent for the success of your facilities management firm. Could you serve your clients if someone broke into your building and stole your computers? You’d likely need to replace the computers immediately. Trying to work with pencil and paper isn’t going to cut it. The only downside is that your equipment was very expensive.
Business contents insurance protects your equipment. Whether it is stolen, lost, or damaged, you’ll be protected. You can use your new business contents insurance policy to replace the items.
Cyber Insurance
As a facilities manager, you likely store a lot of information about your clients and their facilities. You have a database full of information about the facilities you manage. You also have a database with your clients’ payment details. If this database is hacked, the information is going to fall into the wrong hands. This will be incredibly bad for your company. Your clients will get upset and hire a lawsuit to sue your company. This is why you need to maintain a cyber insurance policy. Doing so will ensure that you’re able to handle the problems associated with cyber breaches. Canadian companies are frequently victims of hackers so don’t ignore this insurance.
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 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?