The reason is cheaper than a claim, believe us.
Do you operate a business within the province of Ontario? If so, you should understand that you take a risk each and every time you serve a client. There is a possibility that you might make a mistake. Alternatively, the client may determine that you’ve failed to live up to their standards. This can set off a firestorm and lead directly to the courtroom. The legal costs associated with a lawsuit could result in your company filing for bankruptcy and eventually dissolving. This is why you need to read the information below and learn about Errors & Omissions insurance Ontario.
First and foremost, it is wise to gain a better understanding of E&O insurance. This insurance is suitable for each and every professional, who wishes to offer their skills and services to Canadian citizens. It protects the client and the business. This is the case, because E&O insurance is designed to protect the business with a financial shield in the case of a lawsuit being brought by their previous client. It also protects the client, by allowing them to know that the company can indeed pay, if they’ve made a severe mistake.
E&O insurance protects the company in the event of error and negligence. It can also be helpful should the client claim that your company failed to perform up to standard.
An Unpredictable World
When it comes down to it, all business owners in Ontario need to understand that the world is totally unpredictable. While you may have a specific schedule for the entire week, you never really know what is going to happen from minute to minute. While things may be going excellent one second, the script can flip quickly and your world could be turned upside down. Remember that not all lawsuits are legitimate. The good news is that E&O insurance will protect your business, even if the lawsuit is frivolous.
Therefore, you should always prepare for the worst-case scenario and obtaining E&O insurance is one of the best ways to do just that!
Remain In Business
As mentioned above, a prolonged lawsuit could result in substantial legal costs. In fact, these costs could eventually cause your business to go bankrupt. This is the worst thing that could happen and you will want to make sure that it doesn’t! One of the best ways to ensure your company remains in business is by obtaining errors and omissions insurance. This coverage will help you pay for the legal costs, while simultaneously helping to pay any settlement to the client.
With errors and omissions insurance in place, your company will be able to remain afloat, even if you lose the courtroom battle. Therefore, you should make sure that you obtain a sufficient amount of coverage. Doing so will help to protect your client, your business, and your employees.
Fighting Frivolous Claims
Unfortunately, the number of frivolous lawsuits in Canada has increased immensely over the past few years. And, it is important to realize that a lawsuit and the costs associated with a trial could easily empty your entire bank account. You’ll be required to hire a team of defense lawyers and the lawsuit could drag out for many years. When all is said and done, your company could be sunk, due to the frivolous claim. It is no secret that you want to shut down those claims, without hurting your business.
This is why all businesses need E&O insurance. You never know when you’re going to run into a mischievous client. Make sure your company is protected, before taking the risk. Your first client could be up to something nefarious and you don’t want this individual to also be your last client!
Within the province of Ontario, there are many businesses that will be required to obtain E&O insurance. Offering your services to Canadians without coverage could land you in hot water. Of course, this isn’t always a requirement. It depends on the province and your line of work. Therefore, you should familiarize yourself with your local laws and determine whether or not the insurance is a requirement for you. Obviously, if the insurance is required, you’ll need to obtain it immediately. Otherwise, you can still find plenty of good reasons for doing so!
An Investment In Your Future
Many Canadian business owners will scoff at the idea of paying such an expense, if it is not absolutely necessary. The truth of the matter is that E&O insurance is a good way to invest in the future of your company. If you work without E&O coverage, you are taking a risk each time you make a decision for your client. And of course, the lack of coverage will remain in your mind throughout the entire process. This could make you very anxious and could lead to a major mistake. With the coverage, you will be able to rest assured knowing your business will not be shut down, due to a minor mistake.
Therefore, the presence of the errors and omissions insurance keep your company’s future bright, while also allowing you to open the door to more clients and additional revenue!
Think About Your Family
When it comes down to it, you should remember that your business doesn’t just support you. It also supports your family and the family of each and every one of your employees! Therefore, you should do the right thing and get the insurance. Doing so will prove that you care about your loved ones and your employees. And of course, it will protect them in the event of a lawsuit being filed against your company.