Canada 15 Apr. 14 (http://www.errorsandomissions.ca/)All companies need to protect themselves from potential claims from clients that may be unhappy with the services that have been offered. Luckily in most business sectors there isn’t too much of an danger in the effects of bad advice or services but in the Construction, Finance and the Medical professions the simplest decisions can have wide ranging effects with buildings, personal finances and above all the human body at stake. Professional liability insurance allows a company to know that it has the cost covered of any negligence suit that may arise and therefore peace of mind that they are covered for the potential large sum of money that may be due in compensation.

Generally most businesses are covered for accidents that cause bodily harm or injuries but the professional liability insurance covers employers and businesses from issues such as negligence, misrepresentation, inaccuracies and the problems arising from potentially unfair trading. Usually however, it is important to note that it won’t be covered for setbacks such as data breaches so it is still important to make sure your data and computer systems are as secure as they can be and not really on the hope that the cover payoff will make up the difference. Data is increasingly commonplace in today’s marketplace with companies now have to be very vigilant against attacks from competitors as well as being very sensible with how they destroy data as well as how they store it.

By making sure you are covered with professional liability insurance, you know that all decisions you take with other people’s money will be covered and you know that any one wrong decision will not necessarily end with the closure of your business and everything that you have worked for – very important if you value your own business! It really is an essential when you work in this way and any business would be crazy to not make sure that they have covered this very possible problem that can arise. Obviously we do not expect the worst to happen, or that we would deliberately give the wrong advice, but situation change and it’s important to have the ability to cover for your mistakes.

All in all, it is an indispensable business expense that any company who ignores this will leave themselves open to law suits and court action and therefore would be operating with a very risky business model. The lack of professional liability insurance should make any customer or employee worried that they are dealing with someone not willing to be safe – it also means they may not be able to even provide the compensation for winning claims if they’re a particularly large sum of money.

Errors and Omissions Insurance (E & O) is crafted to protect professionals from their liability exposures at work. We welcome all professionals who currently have Errors and Omissions Insurance (E & O) coverage or have had no previous E & O or professional liability.