There are a number of different types of coverage available for business owners in Calgary, Edmonton, Banff and throughout Alberta, each of which can be specifically tailored to your needs through your Lane’s insurance broker. Errors and omissions insurance is generally a component of a larger business insurance package that works a lot like liability coverage in a personal insurance plan. In fact, errors and omissions insurance is also often called professional liability insurance, and it provides a high level of protection against litigation and financial loss due to your business’s actions and is your safety net should an unfortunate accident or incident occur. Like personal liability insurance, errors and omissions coverage will come with a mandatory minimum, but if your risk level is potentially high it might be a good idea to increase that amount.
What is an Error and/or Omission?
A client or customer can charge a company with an error or omission if the product or service you provide (or failed to provide) did not reach the standards of its description. For example, a client could make a claim against your business if, let’s say in the case of a sports therapist, the treatment provided further exacerbated an injury that it was meant to help alleviate. That would be a rather egregious error on the part of the service provider. An omission could be a gap in a product description that results in a customer injuring themselves or damaging their property due to lack of knowledge that was your responsibility to pass on. For example, let’s say you make candles but fail to let your customers know how to properly use them (such as keep trimming the wick, make sure to use a proper candle holder, and so on) and a fire is started, then that omission on your part could result in your being sued.
It’s important to remember, however, that if your business is simply selling the product, then the liability would most likely fall on the manufacturer, not you. However it still pays to make sure that all of the products you provide are safe to operate and come with clear and concise product use descriptions. Despite the fact that the accident was not “your fault,” it can still look as though you haven’t done your due diligence with your research, will reflect poorly on your business and potentially result in litigation.
Do I Need Errors and Omissions Coverage?
The answer is yes, you do. Everyone from travel agents to surgeons should have errors and omissions coverage as part of their plan. The reason is that we are all human, and everyone makes mistakes. In the case of a travel agent, think of what might happen if they accidentally booked a hotel for a wedding party for the wrong dates. The party would have to pay for accommodations twice, and would more then likely expect compensation. If you’re a small business, that would be a rather large hit out of your pocket, and would be an ideal time to use your errors and omissions coverage to help cover the loss plus provide some additional restitution for pain and suffering.
As there is no such thing as “one size fits all” errors and omissions coverage, work with your Lane’s insurance broker to ensure yours is exactly what you need. Descriptions can vary, be difficult to find and for those who are not experts, practically indecipherable. It’s important to know exactly when you need to make a claim and how, plus any retroactivity dates that may apply.
When applying for errors and omissions insurance you may be asked to provide contract examples and descriptions of safety, quality control and training processes. Cost will vary based on the size and type of your business, but all of our providers provide exceedingly competitive rates. We will work with you to find the very best fit to ensure you and your company is protected.
Business Insurance in Calgary: Contact Lane’s for Trustworthy Advice and Competitive Rates
Lane’s Insurance is a leading Calgary-based insurance brokerage serving Alberta. We offer a complete set of commercial products for business owners and managers. Whether you’re self-employed, running a small business or a decision-maker at a large enterprise, we can match you with the insurance products you need to ensure you’re fully protected, no matter what type of work you do.