Tips For Preventing And Mitigating E&O Claims

Errors and omissions insurance is truly a vital component of modern business, because life is simply unpredictable. Business owners never really know what to expect from one day to the next, despite having a thorough schedule laid out in front of them. Some consumers will simply file a lawsuit in hopes of getting one over on your business. Other times, one of your employees may be responsible for the problem. Even the most careful business in the world may experience problems from time to time. Below, you will learn how to prevent and mitigate E&O claims.

A Written Contract

First and foremost, you should make sure you always have a written contract. The contract will prove to be a vital piece of evidence should the client decide to file a lawsuit against you and your company. Of course, not all contracts are equal. When constructing the document, you need to make sure it specifically states what work will be done, what it will cost, and what will not be done. This will allow you to ensure you fulfilled your obligations per the contract and will help to ensure you emerge victorious in the courtroom.

Quality Control Procedures

Many companies have been severely damaged over the years, due to poor or insufficient quality control standards. In all likelihood, you’ve heard about a major company being forced to recall their products at some point or another. The recall was likely enormously costly and it probably caused many consumers to form a negative opinion about the company in question. You need to do your best to avoid a similar mistake. This is where an effective quality control procedure will be immensely helpful.

And of course, you need to continue monitoring and tweaking your quality control standards to ensure they’re up to par. Perform internal and external audits frequently to keep them in working order. This will ensure your company is always able to deliver a satisfactory service to the client.

Open-Door Communication

Many public service providers fail to listen to their customers. Many of them will only listen long enough to gain their trust and earn their business. This is a huge mistake that can end up ruining the company’s reputation and finances. One of the best ways to settle customer complaints is by responding quickly and professionally. Avoiding the complainant will not help matters. In fact, it will only escalate the problem and force the customer to file a lawsuit against the company. By communicating with the customer and solving the issue, you could potentially prevent a lengthy lawsuit and avoid costly litigation fees.

Face-To-Face Meeting

By inviting the customer to a face-to-face meeting to discuss the problem, will definitely be a great place to start. The customer will respect you even more, if you are willing to look them in the face. Of course, you will need to keep your composure, listen to the customer and avoid a shouting match. If necessary, you should consider hiring a mediator to oversee the meeting. If you show the customer that you genuinely care, you may just be lucky enough to spare yourself a trip to the courthouse. To inquire more about errors and omissions insurance in ontario, visit www.liabilitycover.ca

Need A Surety Bond In Canada? How To Get What You Need

Canadian Surety Bond

Within Canada, there are numerous federal and provincial laws, which regulate businesses and other professionals. In fact, many businesses will not be able to offer their services to the public, until they’re properly bonded and licensed. If you’re going to run a business in the country, there will undoubtedly be a need for surety. If you’ve made it this far, you’re likely dealing with this very problem right now. The good news is that acquiring a surety bond isn’t too difficult. Below, you’ll learn precisely how to acquire the bond, so you can begin generating an income.

Characteristics Of A Good Surety Provider

One of the biggest obstacles you’ll face is the need for a good surety issuer. Canada’s surety market is truly over saturated with providers and this can complicate the process substantially. With this in mind, you will want to look for a few key attributes. These will be listed below for your convenience.

  • The surety provider should be familiar with your industry or line of work
  • They should be well aware of the local and national markets, which pertain to your business
  • They need to consistently get involved with local and national surety associations
  • Should be skilled in finances and accounting
  • The surety provider should be wholeheartedly interested in your well being and success
  • Reputable and well respected

If you’re able to find a provider, who exhibits all of these traits, you’re in luck.

Make Contact

In order to truly find a reliable surety provider, you’ll need to make contact with them directly. By directly speaking with the surety provider, you’ll be able to develop a better understanding of their business, experience, and knowledge. Remember that many surety issuers also deal with insurance. Although these companies may be great, they might also focus too much on the insurance aspect of the business and may have very little knowledge regarding surety. Be sure to ask the individual some pointed questions regarding surety bonds. If they’re able to answer quickly and accurately, you can rest assured knowing you’ve found a good provider.

Preparing For The Prequalification Process

Every surety company has its own standards and requirements that must be followed, when underwriting a surety bond. However, these are commonly shared among surety companies throughout Canada. For instance, you are more than likely going to have to undergo a rigorous process known as prequalification, before you can even be considered for a bond. The underwriter is going to ask you tons of questions, request your credit report, and collect information about you and your company. This whole process can take a bit of time and may even try your patience.

If you want to speed up the process, it will help, if you try to prepare in advance.

What To Compile?

You will need to compile a list of your key employees and the role they play in your business. For instance, this may include your project and assistant managers, developers, and architects. Make sure that you have a detailed copy of these employee’s resumes, as well.

Surety companies base a lot of their research on the financial stability of your company, so you want to make sure that you have all your financial statements in order. This should include a list of your liquid and business assets, debts, and the previous year’s income tax record.  

Submitting The Application

Once you’ve worked through the steps above, you’ll want to go ahead and begin working on the application. As technology has become more prevalent in the industry, more and more providers have begun accepting applications online. This is great for the consumer and makes the process much easier. Completing the application can be done within a matter of minutes, but you may need to wait a short period of time to acquire your quote.

If you agree with the quoted price, you can go ahead and make the initial payment, sign the agreement and acquire your bond. If not and you would like a more favorable price, you should proceed through the process again.

Overall

Although the information above may pertain to one surety provider, you should understand that each issuer would have a unique application process. Be sure to make contact with your surety company of choice, so you can learn the specifics, before plowing ahead.