The role of a manager in any industry is to both lead by example, and to help their employees and clients best position themselves for their own success. Possessing these skills can help you advance quickly in your career; however they can also put you in a position to assume a hefty amount of risk.
By protecting themselves with errors and omissions insurance, managers in Ontario can be sure that a single mistake on their part, the part of their employees, or even a false claim from a client, will not put their assets — or their career — in jeopardy.
Common Risks for Managers
As a leader in any organization, managers must understand that their actions have tremendous consequences on the lives of a wide network of clients and associates. Likewise, the actions of those on your team can directly reflect on you as a leader, even in a legal sense.
Take a look at some hypothetical scenarios that could occur based on some of the most common E&O insurance claims managers face every day:
Mishandling of Funds
A client claims that funds were not properly allocated or were ambiguously utilized by you or someone on your team.
After you let an employee go, they may challenge the grounds on which you terminated them. Regardless of the cause of termination, they may have a wrongful termination allegation.
Lack of Corporate Governance
There is always uncertainty around change. When there are large structural changes, shareholders may make “lack of corporate governance” claims which are detrimental to the company’s stock.
You advise a client or employee regarding a matter and that information gets misinterpreted leading to negative consequence which they deem your fault.
A client that you advise may claim that your advice led to detriments for their business or career.
Of course, these are only a handful of the situations which can and do arise that put managers of all kinds at risk. Cover Advantage can help you mitigate these risks with E&O insurance coverage.
Who Does Cover Advantage Protect?
The term “manager” can be applied to nearly any industry, so it can be difficult at times to navigate who needs specific coverages such as E&O insurance or simple CGL coverage. Here are some of the most common job titles for managers:
Bottom line: if you work directly with clients or directly oversee employees who do, you are likely in need of professional liability insurance if you want to be properly protected in the event of a legal suit.
Get a Quote. Get Covered.
As a manager leaving yourself at risk could mean leaving your team at risk. One mistake or false accusation shouldn’t result in financial consequences that put your and your employees’ futures in jeopardy. Take the time to get protected now.