Insuring Your World - Summer 2004 Vol. 13

Proceed with Caution — Construction Season Ahead! Construction season is here, the busiest and most hectic time of year for general contractors and their employees. Vigilance is essential to ensure construction sites are safe and secure to prevent legal ramifications or losses due to theft. Make sure your construction business has adequate coverage and all contractors and subcontractors maintain sufficient liability coverage at all times. Talk to your Lackner McLennan Insurance Professional for more advice and review this simple checklist provided by the Insurance Brokers Association of Ontario: Pre-Planning Ensure all jobs and tasks are well planned Warning signs should be posted limiting access and indicating any safety equipment required to gain entry All electrical cords that pass through pedestrian areas should be secured to prevent tripping All tools should be stamped with an identification number to assist in recovery The local utilities should be contacted to locate underground services in the event that any excavations are to be performed Fire extinguishers of the appropriate type should be available at all times Certificates of liability should be obtained from all subcontractors to ensure adequate liability coverage in all cases Ensure that all projects comply with applicable codes and standards Maintain records of all jobs including plans, testing documents and approvals Clean up All tools, equipment and materials should be kept in a locked area at all times when not in use All mud or water on public traffic areas should be cleaned regularly All flammable liquids used should be stored in approved safety containers All combustible refuse created during the work should be cleaned up regularly All new equipment should be tested and inspected when the work is completed Customers should sign off on the job once complete Following these simple measures will help keep your work environment safe, your equipment secure and your business profitable during this construction season.

Will My Homeowner’s Policy Cover My Home Business? You should be aware that even though your home insurance package includes liability coverage, it does not extend to anything business related. If your client were to injure him or herself at your home office — or you were to drop fruit punch on your client’s antique Persian Rug — your home insurance policy likely won’t suffice. Some home-based business’ additional insurance risks may even void your homeowner’s coverage! The limits on a homeowner’s policy also may not be high enough to cover the equipment you use for your business, as it usually covers business property up to approximately $2000 (this coverage is only for basic losses such as fire or windstorm and it does not include theft). With such a limit you may not be able to replace your stolen computer, fax machine, scanner and digital camera. And, if your business is construction or renovation, the tools and materials involved could be worth much more. If you plan to work from home, your best bet is to get a business package that will not only cover your office equipment but will also protect you against liability. Business liability insurance will cover most legal costs incurred if you were to be involved in a lawsuit. So, make it your business to get the proper insurance coverage for your enterprise and ask us about home-based business coverage that can be added to your current home insurance policy.

E & O Insurance - Are you Covered? No matter how well you plan, providing professional services and/or selling high-priced products comes with an element of risk and unpredictability. Depending on what services or products you provide to your clients, you may need Errors & Omissions Insurance, sometimes called “E & O Insurance”. Do You Need Errors & Omissions Insurance? Are you a professional or an expert in your chosen field? Is the work that you do skilled and specialized? Do your professional duties involve providing advice or services? Do your customers expect a high degree of service? Does your profession demand a high degree of moral principles or standards? If you answered yes to any of the above, E & O Insurance coverage for your business maybe required. This coverage protects you from bodily injury, property damage and financial loss arising from your business’ products, operations and services depending on your business. A simple error or omission can result in major legal costs, and most liability policies do not address lawsuits involving professional services. Errors and Omissions coverage in conjunction with Commercial General Liability coverage protects your company, its officers, directors and employees against legal liability. It is critical to investigate the benefits of carrying E & O Insurance protection for you and your business, so discuss your coverage needs with your Lackner McLennan Insurance Professional.