Is your BC business protected against potential claims that may be filed against you? Many service providers and consultants unfortunately learn the hard way that they can be vulnerable to certain lawsuits if clients find fault in their services. Fortunately, there is a step you can take to prepare for this scenario, and it’s called professional liability insurance coverage.
How Does Professional Liability Insurance Work?
BC Professional liability insurance is a very specialized form of insurance that will benefit both individuals and organizations that provide services or consulting in BC. This type of insurance, sometimes also called errors and omissions insurance, is compulsory in certain cases and covers more than commercial general liability insurance. The purpose of the insurance coverage is it to pay for costs associated with claims being filed against an individual or business. These costs generally include the fees of lawyers, various court costs, and settlement payments if they apply.
What kind of claims are covered under professional liability insurance? The following are several common claims that service providers can receive from their clients.
- Negligence- A client may claim that their service provider was negligent in some regard when performing their service which resulted in a negative impact for them.
- Misconstrued information- If the client of a service provider or business believes they have been given information which was presented with errors, and they have acted on it to their detriment, they may take the company or individual to court for damages.
- Providing the wrong advice- In this case, the individual or company is summoned to court because the client deems them to have given the wrong guidance in a particular situation and they want compensation for it.
- Misplaying or losing critical client information- When clients hand over sensitive material to a service provider and it is lost, misplaced, or stolen, they can file a claim for that loss.
Above are a few of the potential claims that professional liability insurance will cover.
How Can Professional Liability Insurance Protect Me?
So how does this apply to you as an individual providing a service, an entrepreneur, or a business owner in BC? Here is an example of how professional liability insurance works.
Let’s look at a construction contractor in charge of a project for a client. The project runs into some unforeseen problems and has now passed the estimated deadline. The client is upset as they had an opening date scheduled that now has to be pushed back. The client files a claim for losses due to the delay and now the construction contractor has to respond.
In this scenario, a commercial liability insurance policy will not protect the contractor as it does not cover any service-based claims. Without a BC professional liability insurance policy, he or she would face legal costs, even if they won the case. If they lost, there would be additional costs due to the settlement.
With professional liability insurance in British Columbia, the construction contractor has no need to stress either way because they can go to court, hire defense, and pay damages without taking money from the business. Their professional liability insurance provider would pay the expenses.
Get a Professional Liability Insurance Quote in BC
EasyCover offers excellent professional liability insurance policy packages for individuals and companies in BC. Not only will we provide you with protection for your business, but you can get a free insurance quote and policy within minutes. More importantly, our efficient representatives will have you signed up straight away, ensuring you are covered as quickly as possible.
Get professional liability insurance coverage today. Fill out our free online insurance quote form, email us at firstname.lastname@example.org or call us on our toll-free line at 844-439-2683. Let’s get you covered!