Ontario is truly one of Canada’s biggest hubs for businesses. The province is fully of eager consumers, who are wealthy and ready to spend for the products and services they require. While these individuals are happy to spend a little extra, they’re very picky and will want the best service possible. As a professional in Ontario, you should understand that it is in your best interest to deliver the best service and experience. If you fail to do so, you could end up being hit with a lawsuit and that lawsuit could result in a bankruptcy. This is where Errors and Omissions insurance will prove to be incredibly important. Below, you will learn about the reasons for acquiring E&O insurance as soon as possible.
Believe it or not, Canada’s legal system is ripe for frivolous lawsuits. Thousands of frivolous lawsuits are filed each and every year. And, it is important to remember that nobody is invulnerable to these problems. If you’ve served only a single client, you will still be at risk of being hit with a complaint. Even though you may have done nothing wrong, an unhappy client could still file a lawsuit against your company. If you do not have E&O insurance, you will be forced to pay for these costs out of pocket. This could greatly diminish your ability to defend yourself and you may end up losing in the end.
With this in mind, it is pertinent to maintain a valid E&O insurance policy no matter what! Do not think that you’re invincible, because you’re not.
Think About Your Family
When looking for reasons to make contact with an insurance company, such as Intact Insurance, and sign up for E&O insurance, you should look no further than your home. Your professional activities are responsible for keeping your family afloat. Without the income from your business activities, your family’s quality of life would be diminished very quickly. You may not be able to make your house payment or your car may end up being repossessed. With this in mind, you should realize that E&O insurance goes well beyond your business!
This type of coverage will go to great lengths to protect you and your family! To ensure that your children have a bright future, you should make sure your company has an adequate amount of E&O coverage.
Don’t Neglect Your Employees
While you should definitely think about yourself and your family, you should never neglect your employees. These individuals show up each and every day! More importantly, they work hard for you and play a major role in making your company the success that it is today. Wouldn’t it be downright devastating to be unable to pay these individuals? How terrible would it feel to be forced to tell your employees that their jobs are gone? Errors and omissions insurance can provide you with the reassurance that you’ll never find yourself in one of these situations.
With this insurance, you will be able to overcome a lawsuit without being forced out of business. This will help to ensure that your diligent and loyal workers are able to keep their jobs!
A Daily Allowance
Being forced to visit the courtroom every day can be downright difficult. Nonetheless, this will become a requirement, when you become a defendant. You’ll be required to show up in the courtroom, in order to defend yourself and your company. This will take you away from your business and you will ultimately lose income! Again, this is why it is important to invest in errors and omissions insurance. This type of insurance can provide you with a daily allowance for each day you’re forced to ignore work and show up in the courtroom.
This will ensure that you’re able to recuperate the money lost, while you’re in court.
Peace Of Mind
Business owners and professionals in the Ontario area often have to juggle numerous responsibilities. This can put a lot of pressure and stress on their shoulders. Over time, that pressure can become overwhelming and can lead to further problems. If you want to maintain maximum peace of mind, you should acquire a sufficient amount of errors and omissions insurance. Once you’ve acquired this insurance, you will be able to sleep a little more soundly at night.
Mistakes Are Inevitable
Owning and operating a business is extremely difficult, with the occasional touch and go situation. Every business owner or professional will experience a lot of highs and lows. Consumers come from all walks, with many of them being easy to work with and some not so much. However, it is crucial for professionals to be prepared for every situation. The best way to get prepared is by obtaining an errors and omissions insurance policy.
The E&O policy will protect you from financial loss, in the event a mistake occurs, causing you to default on the contractual agreement. While professionals are always going to be at risk of making a mistake that could potentially lead to allegations of negligence, there are always the employees that will make the risks even higher. When working daily with a large group of employees, business owners are always going to be left at their mercy. It is not unusual for an employ to become upset and intentionally ruin an important aspect of a project or product. You will be left out of the loop until someone discovers the mishap, which in most cases falls in the lap of the customer.
You will not be able to explain this mishap away, because the customer will place the blame on you. As a business owner, you will always be at fault, which doesn’t seem fair, but is a fact of life. The employee can move on to another job, while you are left holding the bag.
You will need to find a quick satisfactory solution to the problem or you will be facing a civil lawsuit. Errors and omissions insurance can soften the blow, by providing you with the financial resources to offer the customer a settlement or hire a team of attorney to find the allegations.
Risk Of Losing Customers
There are some situations in which your business might be required to obtain error and omission insurance, before you can even start on a project. In fact, more and more project owners are looking for E and O insurance before hiring a company. Mistakes are going to happen throughout the course of your company’s history and there is nothing much you can do to prevent them.
Errors and omissions insurance can protect you and your customer against these mistakes that might arise on the job. While error and omissions insurance might expensive it can pay for itself over an extended period of time. You don’t want your company to get overlooked for a potential job, just because you don’t have errors and omissions insurance. When explaining to a customer why they should hire your company E and O insurance can go a long way in proving that you care about your customers and their property.
Protects Against Contractual Disputes
Miscommunication is one of the root causes for a contractual dispute. Maybe when the customer signs the contact he or she doesn’t fully understand what the contact entails, or maybe you aren’t explaining it good enough. The truth is that contacts can be kind of complicated and you really have to legally in depth to understand everything that they entail. A customer may try to bring a lawsuit against you, alleging you misrepresented yourself, when in all actuality, they just did not understand the contract. Of course, you will be found non-liable in court, but you will incur tons in court costs and fees. Error and omissions insurance can protect you in this type of situation.
Failure To Complete A Project On Time
When you start a big job your contract will state a time in which that job will be completed. However, more times than not unforeseen problems can arise on the job, which causes it to last longer than expected. Of course, when this happen the customer is going to be upset and probably won’t fully understand why the job is completed on time. Maybe the unfinished work of the project is holding them up and causing them to lose money. Their only response will be to take legal action against you and your company. However, with errors and omissions insurance you can be protected against these kinds of claims.
All professionals are forced to deal with a lot of paperwork. However, this task is often a responsibility of a good administrative team and secretaries. Nothing you can do will eliminate all the risks that go along with documenting and filing large data. Errors, lost documents and mishandling can cause a lot of confusion, in a business establishment that relies of properly managed paperwork.
Administrative errors can lead to a civil lawsuit that could end with large fine or settlement. Most professionals put a large portion of their earning right back into their business, leaving them very little to fight out civil lawsuits. Instead of keeping this money on hand for civil lawsuits, they rely on errors and omissions insurance. This coverage will protect you before, during and when the lawsuit reaches a finale.