The Importance Of E&O Insurance For Event Organizers
There are over tens of thousands of event planners and professional organizers in the Ontario area, but insurance companies like Intact Insurance and Aviva insurance say that error and omission insurance is often over looked in this sector of business. However, as an event planner or professional organizer you would be greatly mistaken to over look error and omissions insurance, because there is a chance that it might save your business form financial ruin.
Just think about it, in order for an event to be scheduled and go off without a hitch there are a lot of moving pieces that have to come together. Anytime you are managing one of these types of events there is always a potential for an accident or mistake. Maybe the caterer is the one to make a mistake or miscalculation and the client tries to get compensated by taking legal action against you. It doesn’t matter if you are planning a one-time event or several events over the next few years any event organizer can greatly benefit from obtaining error and omissions insurance.
Understanding Error And Omissions Insurance
Errors and omissions insurance is a type of insurance that protects your company or you individually in the event that a client tries to hold you responsible for services that you failed to provide. It also protects you in the event that you need not meet the customer’s expectations. Basically, anytime a client tries to take legal action against you saying that you did not provided the services that you promised error and omissions insurance is going to protect you. For most doctors this type of insurance is known as malpractice insurance and for lawyers it may be referred to as professional liability insurance.
When Do You Need To Purchase Error And Omissions Insurance?
Just like any type of insurance, the best time to purchase error and omissions insurance is before a risk is taken. In the service industry you are always at exposure of risk, so it only makes sense to purchase the insurance before or as soon as you open your doors for business. In order for your error and omission insurance to kick in you need to have it at the time that the lawsuit takes place. For instance, you can’t get sued then purchase error and omissions insurance and except the insurance company to protect you. You need to have the insurance current and active at the time the suit takes place.
Dealing With Frivolous Lawsuits And Disgruntled Employees
If you have been in the event planning business for a while now, you probably already know that there are some people that you just cannot satisfy. It doesn’t matter what you do for them or how many extras you throw in it just seems like they are not satisfied. These are the types of customers and clients that more likely to bring frivolous lawsuits against you. Of course, you are thinking since you are not at fault your company will be just fine, but that is not always the case. Think about all the time and money that you are going to have tied up in the court proceedings, court costs, and lawyer fees.
Just because you are not at fault it doesn’t mean that you are not going to have to pay someone to represent you. This is where errors and omissions insurance can play a huge role. E and O insurance can cover anything from judgments, settlements, and defense costs.
Why Should Your Company Get Covered With E And O Insurance?
The simple fact of the matter is that everyone makes mistakes. It doesn’t matter if you are the best employer; you hire the best employees, or have the best risk management policies in place. Mistakes are going to happen and they are probably going to happen at the worst possible time. For instance, as an event planner you could easily book the band, caterer, and the reception hall for September 20th when the wedding or event actually takes place on the 21st. This kind of mistake could cost your client or clients thousands on top of thousands of dollars and who is going to be held responsible?
Not to mention, what is this kind of mistake going to do to the reputation of your company? However, when you invest in errors and omissions insurance you can avoid these types of situations, because the insurance policy will cover these types of losses. Everyone will walk away from the situation happy and the reputation of your business will be intact.
Great Selling Point
Error and omissions insurance cannot only be used as a tool of protection, but it can also be used as an advertising quality. When customers and potential clients know that you and your company carry error and omissions insurance they are more likely to choose your business to caterer their event. Knowing that they will be protected in the event of a mistake makes them feel more confident in your business. In fact, now that more and more individuals are becoming aware of error and omissions insurance and how it protects them they are making sure that their even planner has this type of insurance before hiring them.
When it is all said and done, the increase in your business will have practically paid for you error and omissions costs.
Who To Contact For Error And Omissions Insurance
There are a number of insurance companies in the Ontario area that can provide event planners with error and omissions insurance. As mentioned above Intact Insurance and Aviva are just two of the companies. However, choosing a provider is much more complicated than just choosing the first insurance company that you come across that offers e and o insurance. You need to know that every company that offers this type of insurance will also offer different policies. While they all might be very similar there might be something in the fine print that makes one company a better option than the other. It also helps if you choose a provider that is very adept in your type of field. For instance, you don’t want to go with an insurer that is used to representing construction companies, because your company’s cause and concerns will vary.