In the country of Canada, businesses will face a wide variety of risks. They’re always at risk of being forced to deal with a disgruntled client. If you’re unable to calm the client, there is a good chance that they’ll try to take the argument to a whole new level. This could result in a lawsuit against your company. In the country of Canada, many businesses have been forced to shut down, due to lawsuit settlements. You’ll definitely want to avoid this at all costs. You can do just that by getting educated about professional liability insurance by going to this link.
Below, you’ll learn about the underlying purpose of this type of insurance.To learn about how to get a policy (Step by step guide), click here.
Protect Your Business
When it comes down to it, there is one main reason for getting professional liability insurance. Whether you’re covered by Aviva, AIG or another from the list of Canadian professional liability insurance providers that, the insurance will always serve the same purpose. It will be there to protect your business from lawsuits. This insurance will provide you with protection from frivolous and legitimate lawsuits. Once you’ve gotten covered by a sufficient amount of professional liability insurance, you will have a safety net and shouldn’t have to worry so much about going into bankruptcy, due to a frivolous lawsuit.
Protecting Your Family
You should understand that you are not the only one that depends on your business for a steady income. Your family and loved ones do so as well. These individuals would be in trouble, if your company was suddenly forced to shut down. They would no longer be able to afford the necessities that they need to live happily and thrive. This is another major purpose of professional liability insurance. This insurance will help keep your business up and running, so you can continue providing for your loved ones. Get covered today, so you can know for certain that your family members will have access to life’s necessities tomorrow.
Protects From Inaccurate Advice
Some professionals make a living by providing advice to others. There is a good chance that you offer legal or financial advice to clients. If this is the case, you should understand that your advice could lead to major problems in the future. If you make a mistake and offer inaccurate advice, you could very well be held liable for your mistake. If the client has lost money or got injured due to your advice, you will be at risk of being hit with a major lawsuit. This is another reason that your company should be covered by professional liability insurance.
Covers All Or Part Of The Settlement
Most Canadian companies will do whatever is necessary to settle a claim, before it ends up in court. In fact, this is the best and most affordable way to settle a claim with an employee or client. If you wait until the plaintiff files a lawsuit against your company, you will be forced to pay more, since you will be responsible for the court costs. Also, you will need to hire a litigation team, whereas you could have possibly reached a settlement with the plaintiff with or without an attorney. The cost to fight in court for a small business like a web development agency can be costly to the point where the owners of the business may have to claim bankruptcy if the expenses are paid by the owners.
Settling a claim in or out of court can be rather expensive, especially if you have to pay the full amount out of pocket. With this said, if you were covered under a professional liability insurance police, you could have possible scathed by only paying part of the settlement. In some cases, businesses have been able to rely on their policy to cover the entire amount of the settlement.
Covers Temporary Staff
Many small and large companies rely on staffing agencies to fulfill their business obligations. This option prevents companies from needing to hire a full-time employee. The staffing agency will provide you with a temporary employee who will perform necessary duties for a specified amount of time. Temporary workers are just like full-time workers, as they can make costly mistakes that will put the company in jeopardy of losing a large sum of money.
Accounting, development, installation and manufacturing errors are only to name a few mistakes that can pose financial risks. If you find yourself in this situation and are covered under a professional liability policy, you will not have to worry about these risks. The policy not only covers your permanent, full-time employees, but also covers independent contractors and temporary staff.
If you own a large business like a project management or property management firm, you probably already know just how challenging it is to always keep an eye on your employees. Sure, you can train them the best you can, make them attend weekly meetings, and hire someone to watch over them, but the truth of the matter is that they are going to make mistakes from time to time. Unfortunately, sometimes these mistakes could lead to major financial loses for the client or customer. When this happens, the customer is going to come to your company seeking reparations. This is where professional liability insurance can come in handy. Professional liability insurance will cover any financial loses that are experienced by the customer, in the event that you are found liable in a court of law.
Covering Lawyer Fees
Being located in Canada, you should be aware of the fact that most lawyers charge by the hour, which can be pretty expensive in some cases. In fact, there have been a lot of small businesses that have been forced to close down operations or settle cases that they could have won, just because they could not afford to pay their legal fees. However, when you invest in professional liability insurance this is something that you and your company will never have to worry about. Professional liability insurance will cover your litigation fees throughout the investigation and court processes.
In addition to paying expensive litigation fees, you are going to be required to file documents and pay deposition fees, which all can add up over time. However, this is where professional liability insurance can come into play, especially for a country wide business like a travel agency is, because it will literally cover all these costs, along with the time your lawyer puts into preparing the documents.
Other FAQ before purchasing professional liability insurance
- How much professional liability insurance do I need?
- How do I get a professional 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 as a professional?
- What other professions need professional liability 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 services?
- What is the cost of professional liability insurance?
- How do I apply for a professional liability insurance policy?
- How do I qualify for professional liability coverage?
- How long will it take to get a professional liability insurance quote for my business?