Errors & Omissions Insurance
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Errors and Omissions Insurance in Alberta
Anyone can make mistakes these days, and if you own a business in Alberta, there is a good chance you could be sued for your mistakes or those of your employees. Errors and omissions insurance is designed to protect you against these mistakes, so you can stay in business and not have to pay out a lot of money in damages, as a result of errors. Take James P for example.
James was a successful electrical contractor and started out as an electrician trainee many years ago. He employed 16 people and recently won a bid on a major construction job to perform residential wiring for an apartment building. One day, one of his workers installed a new electrical panel but accidentally put in a double 50 amp circuit breaker where a double 30 amp breaker was supposed to go, for the laundry circuit. This essentially left the circuit unprotected to conditions like overload.
Unfortunately, no one noticed the error and as time went by, the project was completed and people moved into the building. Then one night, a fire started in one of the apartments (caused by a clothes dryer motor that overheated). After a fire investigation, they discovered that the 50 amp breaker did not protect the dryer motor from overloading and this is what caused the fire (A 30 amp breaker would have tripped, avoiding the fire). All this pointed to the error in installation by James’ employee.
James’ company was responsible for damages in excess of $50,000 to the building. However, he was also sued for a million dollars by the people that were injured in the fire. Had James checked his policy beforehand, he would have seen that his policy would only pay $100,000. Since James could not pay the remaining balance on the settlement, he could not stay in business. If only his insurance agent had explained the importance of having enough E&O insurance for his business.
E&O Coverage Explained
Errors and omission coverage protects your business against mistakes that you or your employees make, especially if those mistakes result in injury or damages, that you could be sued for.
Do I Need Errors and Omissions Coverage?
If you run a business that performs some type of service, you may need this protection. This is especially important if your business makes repairs, installs equipment, or does work for other people or businesses. Many businesses should invest in this coverage, and this includes:
- Auto repair shops
- Realtors (this coverage is now mandatory)
- Insurance brokers
- Construction companies
- IT professionals
- Medical services
- And many more
Standard Coverage for E&O
When you take out errors and omissions insurance you should receive coverage for:
- Acts of negligence (actual or alleged)
- Legal defense costs
- Personal injury (including slander and libel)
- Damages and claims
Available E&O Insurance Options
Your options will depend on your business and a good insurance professional will help you explore all of your potential risks. Optional coverage may include:
- Independent contractors or temporary staff – if you hire or outsource some of your work, it is still conducted by your company (legally) and you need to be protected.
- Past work claims – it could take years for some problems to develop (like the circuit breaker incident in the example) and you should have protection.
- Previous lawsuits – problems may develop from past law suits as the Canadian legal system can sometimes be very slow.
- Copyright infringements – this may affect publishing services, writers, musicians, manufacturing businesses, and such.
It’s important to remember that most E&O policies do not cover acts of fraud or dishonesty, and there are limits and exclusions to be aware of. You will need a different kind of insurance for things like that.
The Importance of Errors and Omissions Insurance Coverage
Because it is human to error, you need E&O protection. Plus, it is hard to assess all of the risks you may encounter, and that is why many Canadian businesses are turning to insurance professionals like Leibel Insurance Group. We are not simply an agency that sells insurance policies for one company. We are a team of independent insurance professionals that have 250 years of experience in the insurance industry, and we have been serving customers in Alberta for more than three decades.
Leibel Insurance Group is more than capable when it comes to risk assessment. In fact, we have insurance professionals with the ability to conduct risk audits for your company, to let you know exactly what kind of risks you are being exposed to now, in the future, and in the past.
When you choose us you are choosing insurance professionals with access to more than seven insurers that are leaders in E&O insurance and we offer more than one kind of available discounts. You also receive the benefits of:
- Insurance coverage tailored to your business
- A Dedicated service team
- Claims response 24/7
Why take unnecessary risks with your business, when you can have the best E&O coverage at the most affordable rates today?
Call Us at (780) 484-8880
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Since being with Leibel Insurance we have had great personalized service. The staff are very professional, kind and do whatever necessary to answer your questions as well as get you the best possible rates.