Do I Really Need Professional Liability Insurance in the GTA?
Does your business offer services to customers in the Greater Toronto area? If so, you could be putting your company at risk each time you do business. You never know when someone is going to make a legal claim against you in this very litigious society. You can’t do much about that, but you can take care of the risk factors associated with lawsuits against your business. It involves having the right professional liability insurance in place. This ensures you are protected against a number of bad things that can happen, and here is an example.
Vernon L worked for 30 years in the oil industry. In fact, he knew just about everything there was to know about pipelines, rigs, and extracting crude oil from the earth. After all those years he was thinking about retiring, until he found out just how lucrative and rewarding the consulting business could be.
Vern set up a business, consulting with his former employer after he retired from the company and he was in demand. In fact, Vern was soon making more money from consulting than he made from his previous job. Soon, Vern decided to branch out and take on other clients. However, before he expanded his business, he talked to a risk management professional, who was also an independent insurance broker.
Vern’s agent was shocked that he did not have professional indemnity insurance. He showed him all the bad things that could happen from giving out the wrong kind of professional advice. This made Vern think and he took out a policy that very same day. It was a good thing he did too.
A few months later, Vern got a letter from an attorney. One of his clients was suing him because the advice he gave them on drilling, resulted in substantial damage and pollution to the local eco system. The claims were over one million dollars for repairs and cleanup services. Thankfully, Vern had the right coverage at the right time.
Professional liability insurance is sometimes confused with errors and omissions and with some companies there is a fine line between the two. Errors and omissions is a particular type of professional liability.
