Foire aux questions

Most standard policies do not automatically include flood or earthquake coverage. However, depending on your risk assessment and the insurer's acceptance, these coverages can often be added as an option.

Commercial property insurance generally covers buildings, equipment, furniture, inventory, and sometimes even third-party property in your custody. The exact coverage depends on your specific policy.

D&O insurance generally covers allegations of mismanagement, contested financial decisions, breaches of fiduciary duty, management errors and omissions, employment-related issues (such as discrimination or harassment), and shareholder or creditor lawsuits.

Corporate liability insurance covers the company against damage caused to third parties. In contrast, directors' and officers' insurance protects individuals in their management functions against lawsuits related to their professional decisions.

Directors & Officers insurance is essential for company directors, officers, and senior executives, whether publicly listed, private, or not-for-profit. It is also essential for SMEs, startups, and organizations where decision-makers may be personally liable.

Directors' and officers' liability insurance protects company decision-makers against lawsuits arising from their professional decisions and actions. It covers legal defence costs and potential damages, safeguarding their personal assets.

If your construction activities involve pollution risks (excavation, demolition, etc.), this insurance is highly recommended. It covers clean-up costs and claims related to pollution caused by your work.

By grouping all parties under a single policy, wrap-up insurance eliminates duplication of coverage, standardizes limits and deductibles, and can offer economies of scale, reducing the overall cost of insuring the project.

Builders' risk insurance explicitly covers property damage to the project under construction, while wrap-up insurance is a comprehensive policy covering civil liability and sometimes property damage for all project participants.

Unlike insurance, which compensates for losses, surety bonds guarantee the fulfillment of contractual obligations. If you fail to meet these obligations, the bond issuer pays, but you must reimburse it.

Changing insurers for your Errors & Omissions (E&O) policy is an important decision that requires careful planning and attention to ensure a smooth transition and continued coverage. Here's a detailed look at the crucial steps to follow and considerations to make when changing E&O insurers:

1. Ensure there is no gap between the two policies :

• Carefully plan the transition date between the old and new policies.
• Ensure the new policy takes effect immediately after the old one expires.
• Avoid even a gap day in coverage, which could leave your business vulnerable.

Importance : Even a brief period without coverage can expose your business to significant risks. Claims can arise at any time, including during a transition between insurers.

2. Check that the new policy includes an appropriate retroactive date :

• The retroactive date of the new policy should ideally be the same as that of the old policy.
• Negotiate an unlimited retroactive date with the new insurer.
• Make sure you understand the implications of any changes to the retroactive date.

Importance : The retroactive date determines how far back in the past your coverage extends. An incorrect retroactive date could leave some past incidents uncovered.

3. Consider "tail" insurance or an extended reporting period with the old insurer :

• A "tail" insurance policy extends the period during which you can report claims for incidents that occurred during the validity period of the old policy.
• Evaluate the cost and benefits of such an extension, particularly if you change the coverage type (e.g., claims-made to occurrence-based).
• Determine the appropriate length of the extended reporting period for your business and applicable limitation periods.

Importance : This option protects against late claims for incidents during the old policy period.

Fully disclose claims history and business activities to the new insurer :

• Be completely transparent about your past claim’s history.
• Provide full details of your current and planned business activities.
• Disclose any known circumstances that could give rise to a future claim.

Importance : Full and honest disclosure is crucial to avoid any risk of the policy being invalidated or contested in the event of a claim.

Additional considerations :

• Carefully compare the terms and conditions of both policies to identify any significant differences in coverage.
• Review coverage limits and deductibles to ensure they remain relevant to your needs.
• Check whether the new insurer offers additional services like risk management or legal assistance.
• Consider the change's impact on your customer relations, particularly if specific contracts require notification of a change of insurer.
• Keep copies of all your old policies and associated documents, as they may be needed for future claims.

The role of a specialist broker :

Working with a team of specialist brokers, like the one mentioned at Covalen, can be highly beneficial in this process. They can :

• Negotiate with insurers to obtain the best possible terms.
• Ensure a smooth transition by coordinating with the old and new insurers.
• Advise you on the specifics of your industry and best practices in E&O insurance.
• Help you understand the nuances of different insurance offerings.
• Guide you in preparing the necessary documentation for the new policy.

In conclusion, changing E&O insurers requires careful planning and attention to detail. By following these steps and working with experienced professionals, you can ensure a smooth transition and maintain ongoing protection for your business or professional practice.

Reducing Errors & Omissions (E&O) insurance premiums is an essential goal for many professionals and companies. While many factors determine the cost of insurance, there are several effective strategies to reduce your premiums potentially. Here's a detailed analysis of these strategies :

Implement sound risk management procedures :

• Develop clear written policies and procedures for all critical aspects of your business.
• Set up audit and quality control systems.
• Carefully document all important customer interactions and decisions.
• Use clear, detailed contracts to define the scope of your services.
• Implement robust data backup and security systems.

These measures demonstrate to the insurer that you are actively reducing risk, which can translate into lower premiums.

Maintain a clean claims history :

• Proactively manage customer complaints before they become claims.
• Implement an effective dispute resolution process.
• If a claim does arise, work closely with your insurer to resolve it quickly.
• Learn from every incident to improve your practices.

A clean claims history is one of the essential factors in obtaining favourable premiums.

Opt for a higher deductible :

• Increasing your deductible can significantly reduce your premiums.
• Carefully assess your financial capacity to bear a higher deductible in the event of a claim.
• Consider this option as a form of self-insurance for small claims.

Participate in ongoing training and obtain professional certifications:

• Stay up-to-date with best practices in your industry.
• Obtain certifications relevant to your field.
• Make sure your staff is also well-trained and certified.

These efforts demonstrate your commitment to professional excellence, which can be viewed favourably by insurers.

Choose coverage limits tailored to your actual needs :

• Carefully assess your coverage needs with your specific activity and risks.
• Avoid over-insurance, which can lead to unnecessarily high premiums.
• Consult an expert to determine appropriate limits.

Work with an experienced broker :

• A good broker can help you compare offers from different insurers.
• They can negotiate on your behalf and help you present your risk profile most favourably.
• They can advise you on industry-specific best practices to reduce risk.

Additional strategies :

• Consider a bundled policy or insurance program for your industry, which may offer more advantageous rates.
• Pay your premium annually rather than monthly to avoid financing charges.
• Review your policy regularly to ensure it remains relevant to your current needs.
• Consider implementing risk-reducing technologies, such as project management or customer tracking software.

It is important to note that reducing premiums should not come at the expense of adequate coverage. The goal should be to optimize your E&O insurance to get the best possible protection at a reasonable price.

Work closely with our specialist team to help you find the right balance between cost and coverage.