Compliance guidelines to run a school or childcare in Ontario or abroad are constantly evolving. So too are the various insurance products available to respond to these evolving risk exposures.
As the broader public (your parent clientele) become aware of these new standards and duties for both a non-profit or independent private operator, compliance not only matters, it will need to drive how you conduct your business. How can you have appropriate protection to defend your rights and protect your assets against potential fines, penalties or even lawsuits?
Here is a handy summary outlining the various types of policies, and assist you in matching the right policy to the risk:
1. General Liability or Commercial Liability – This coverage is available on most standard “package” policies insuring the rest of your property and commercial business operations. It responds to liability for bodily injury or property damage for which you could be held liable and generally is bundled with coverage for tenants legal liability, employers liability , personal and advertising liability, medical payments and employee benefits liability. With the evolution of liability wordings, Directors & Officers Liability, Employment Practices Liability, Errors & Omissions Liability, and Cyber Liability are offered as separate policies on a “claims made “ basis while Commercial General Liability policies usually apply on an “occurrence” basis.
2. Directors & Officers Liability for profit organizations – The coverage insures the directors and officers of the corporation against wrongful acts where the corporation cannot indemnify the directors and officers by law or financial impairment. It can extend to outside directorships as well.
3. Directors & Officers Liability for non-profit organizations – The coverage here also responds to wrongful acts and provides indemnity to the entity, the individual “insured persons” if the entity cannot indemnify them and outside directorships. The insurer will provide defense costs as well as indemnity comparable to coverage for private Directors & Officers Liability wordings.
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This literature is descriptive only. The precise coverage afforded is subject to the terms, conditions and exclusions of the policy issued.
4. Employment Practices Liability – This wording is targeted at defining wrongful acts with respect to “wrongful employment acts or practices”. It is often added as an extension or included within a wording for Directors & Officers Liability by broadening the coverage description. They can define, for example, harassment, discrimination, wrongful “discipline” and failure to provide or enforce adequate or consistent corporate policies and procedures designed to prevent, halt or punish such inappropriate conduct. 5. Errors & Omissions Liability – Usually this wording stands as a separate policy to defend against wrongful acts as they are committed in the performance of, or failure to perform, “professional services”. Teachers and Registered Early Childhood Educators are considered “professionals” who belong to Colleges that act as regulatory authorities capable of registering fines or discipline for violations.
6. Cyber Liability – Cyber Liability policies can provide broad protections with respect to expenses related to restoring corrupted data and the loss of income caused by computer viruses , expenses related to responding to a privacy breach , lawsuits arising from a privacy breach or the inadvertent transmission of computer viruses as well as liability arising from information posted electronically. Indeed, the coverage details, extensions and exclusions, conditions and terms for all these types of liability policies differ dramatically among insurers. Liability policies are part of the same evolution that has affected the legislative changes in Ontario to which you must comply.
CCV Insurance & Financial is here to help you navigate the evolution together, please contact us for more information about how to minimize risk.
By Deborah Gibson, BA, CIP
*This literature is descriptive only. The precise coverage afforded is subject to the terms, conditions and exclusions of the policy issued.