Professional Liability Insurance in Red Deer
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Start QuoteHere at EasyCover, we are dedicated to giving you the best professional liability insurance quotes in Red Deer, at the best prices.
We understand that delivering any kind of service can come with inherent risks. This is why we believe every professional would benefit from learning more about professional liability insurance and how it can protect them and their livelihood.
Our team makes understanding insurance easier by providing answers to some of your top questions. Learn more below.
What is Professional Liability Insurance?
Professional liability insurance, also known as errors and omissions insurance, protects you when a client claims you did not deliver the promised service or product or claims any kind of negligence in the service they received.
Many professionals and businesses think that having commercial general liability insurance is enough, but this type of policy only covers third-party bodily injury or property damage.
The financial damages resulting from services or advice offered in a professional capacity that are not up to a client’s expectation are not covered by commercial general liability insurance.
That’s where professional liability insurance comes in to cover any legal fees required as well as the settlement amount.
What’s the Difference between Professional Liability Insurance and Commercial General Liability
Professional liability insurance and commercial general liability insurance in Red Deer are triggered by different types of losses and the policies are structured differently with respect to how they respond to claims.
Most commercial general liability insurance policies are written in an “occurrence” form; whereas professional liability insurance policies are usually written as “claims made” policies.
The industry standard is for insurance companies to offer professional liability insurance coverage on a “claims made and reported” form.
This means that the policy will only respond to claims made against you and reported to the insurer within the policy term.
How Does Errors & Omissions Insurance in Red Deer Work?
An EasyCover professional liability insurance policy follows the industry standard and is written as a claims-made form, however, we offer an unlimited retroactive date.
This means we will respond to new allegations/claims made against you for past work which was done before you purchased your EasyCover policy as long as:
- You only became aware of the grievance against you during the policy term
- The claim is reported to us during the policy term.
Many other professional liability insurance policies set the retroactive date to the policy inception date, meaning you would not have coverage for work that you did before the insurance policy’s inception date.
What does Errors and Omissions Insurance in Red Deer Provide?
Most professional liability insurance (also known as errors and omissions insurance) policies cover judgments, settlements, and defence costs. Even if the allegations against you are found to be untrue in court, you could still spend thousands of dollars on legal defence costs.
Those kinds of expenses can bankrupt a small company or contractor and have a lasting impact on your professional reputation and future business.
If you want to know more about professional liability insurance and live in Red Deer, EasyCover can help. We provide the answers you need and offer complete and affordable professional liability insurance.
Is Professional Liability Insurance in Red Deer legally required?
For certain professions in Red Deer, having professional liability insurance or errors and omissions insurance in Red Deer is legally mandatory.
Professionals who are required to have E&O insurance include doctors, lawyers, contractors, and real estate agents. While other professionals aren’t obligated to carry this type of insurance, it would still offer them many benefits, such as financial protection.
Who Needs Professional Liability Insurance in Red Deer?
What Does Errors and Omissions Insurance in Red Deer Cover?
Product failure
Let’s say you’re a wedding planner and when something goes wrong with a certain delivery that affects the wedding, your client sues you for negligence.
Not only would that hurt your business reputation, but it can also drain your bank account if you don’t have an errors and omissions insurance policy in place.
Your professional liability insurance policy can cover the consequence of getting sued for damages due to a faulty product.
Not only that, but the policy can also cover all legal costs associated with the lawsuit.
Professional negligence
A claim of professional negligence is made when your client believes that they did not receive the promised level of service or product.
If you’re a marketing specialist, for example, and your strategy does not deliver the return-on-investment levels that you promised the client, they can sue you for compensation.
In these cases, your professional liability insurance kicks in to cover all resulting financial loss and legal fees.
Media Implications
Media implications can include many things such as copyright infringement, libel, and defamation.
Magazines can sometimes use certain phrases to describe a celebrity or local figure that can result in that person suing for defamation or slander, for example.
Errors and omissions insurance can take care of these lawsuits by paying the settlement fee to the damaged third-party, as well as the legal representation.
What is Not Covered by Errors and Omissions Insurance in Red Deer?
Errors and omissions insurance doesn’t cover any intentional, criminal, or fraudulent acts. It also won’t cover cases where cost estimates and guarantees were given as well as incorrect profit estimates.
What is the Cost of Professional Liability Insurance in Red Deer?
You can never put a price on an insurance policy and especially with business insurance.
That’s why the cost of professional liability insurance in Red Deer depends on things such as:
- The business’ industry
- Annual revenue
- Number of employees
- History of insurance claims
- Level of business risk
- Value of product or service.
How Much Professional Liability Insurance in Red Deer Should I Have?
How much professional liability insurance you should get depends on the risks associated with your business.
You want to avoid being underinsured and paying out of pocket if you are faced with a lawsuit, but you also want to avoid overpaying for insurance coverage your business does not benefit from.
The best way you can determine the amount of professional liability insurance coverage in Red Deer you should get for your business is by hiring an errors and omissions insurance broker.
Professional Liability Insurance in Red Deer: FAQs
It’s a document provided by your insurance company that acts legal proof that you and your business are covered by professional liability insurance in Red Deer.
If you are still operating your business, it’s not recommended to cancel your errors and omissions coverage, but it’s wise to review it annually in case there is coverage you no longer need or coverage that should be added. Cancelling your coverage completely is possible through your insurer according to their terms and conditions.
Malpractice insurance is a specific type of professional liability insurance which is designed to protect healthcare professionals such as doctors and nurses from third-party allegations of negligence, errors, and faults while in their care.
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