Reducing The Risks Of Error And Omissions Insurance Premiums

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Jan 232017

If you are a real estate agent in the Ontario area, obtaining and holding an error and omission policy should be considered a necessity. One simple lawsuit can jeopardize your business and throw you into financial ruin. Even if you follow all the rules and stick to the codes there is still always a chance that you can get sued.

Even if you are found not at fault, you are still going to have to pay court costs and lawyer fees. This is where errors and omissions insurance can protect you, your family, and your business. Not only this, but holding error and omission insurance is an excellent selling point. When customers know that they are protected by the insurance, they are going to feel more obliged to acquire your services.

With all that being said, E&O insurance premiums are not cheap. In fact, the premiums for E&O coverage are steadily rising and probably will continue to rise in the future. This is in partly due to the numerous amounts of lawsuit and claims being filed against participating companies. However, you will be happy to learn that there are precaution and methods that you can take to reduce your risk or being sued and your premium costs in the process.

Taking Risk Reduction Classes

To start off, there are a wide variety of risk reduction classes available for real estate agents in the Ontario area. Not all, but some E&O insurance providers will offer reduced premium rates to their customer that have taken these classes. Taking these classes prove to the insurance companies that you are committed to the industry. If you have employees working under you, it will also be imperative that they take these classes, as well.

Consulting With A Lawyererrors omissions insurance cost

A lawyer with extensive knowledge in litigating real estate matters can evaluate your company and tell you where your greatest risk lie. He or she can also advise you on the proper steps to take in order to reduce your risks of being sued. These lawyers can also come into your business and give intuitive seminars to your employees, as well. This will help to keep everyone informed on real estate matters.

Maintain Good Customer Relations

Always keeping in touch with your customers and opening a line of communication can greatly help, when it comes to preventing lawsuits. For instance, if you have a good line of communication with a customer and a problem arises, they are more than likely to contact you before filing a lawsuit. This gives you and your clients the opportunity to work through the problem, before it is tied up in the court system.

Shopping Around For An Agent

While there are tons of different licensed agents in Ontario that offer E&O insurance polices, you need to know that not every policy is designed the same. While it is important that you get the very best coverage possible, it is also important that you get the best rates possible. Shopping around and looking for different insurers can give you a great chance to compare polices and prices. Just remember that the cheapest option may not always be the best choice.

Walking You Through The Various Ways To Apply For Surety Bonds

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Dec 122016

Are you currently responsible for acquiring a surety bond or two for an upcoming project? You’re not alone. The mass majority of service providers in the country of Canada will face this type of situation at some point or another. While the application process might seem like a majority complexity, it is actually fairly simply. In fact, once you’ve obtained your first bond, you will see that applying for surety is quick and easy. This is especially true, when working with a Surety provider. Before you jump ahead, you should analyze the information below and learn about the numerous ways to apply for your next surety bond.

First Things First

Before moving too far forward, it is essential to make sure you’re actually prepared to obtain the necessary bond or bonds. You should first take the time to figure out precisely what is needed. What bond do you need at this specific point in time? Are you required to obtain a bid bond, performance bond, or a license bond? How much do you need? These are all questions that need to be answered before you move forward. At the same time, you should prepare your documentation. Remember all of the requirements and paperwork that may be needed.

By obtaining this information in advance, you will be able to save yourself a return trip to the surety provider’s website or office. In some situations, this may be able to help you avoid missing your deadline. If you’re unsure what is needed, you should contact our offices and speak with a surety expert. They’ll be able to provide you with the answers that are needed.

Pick Up The Phonecall a surety company

A lot of business owners do not like the idea of submitting their private information over the Internet. This is entirely understandable. A lot of businesses have been put through substantial turmoil, due to similar problems. Don’t worry. Construction bond is here to help. If you prefer to speak to a surety expert directly, but do not want to leave home, you can simply place a call to the surety company’s offices. You’ll be put in direct contact with a surety expert and this individual will be able to answer all of your questions, while guiding you in the right direction.

Whether you have a question or are ready to begin the application process, you can always rely on this method.

Face-To-Face Meeting

Many consumers prefer to conduct business inside a financial establishment, instead of online or on the phone. If you are one of these people, it is highly recommended for you to make an appointment with one of our agents. If a face-to-face meeting gives you peace of mind and comfort, we want to provide you with service. Many analysts believe that face-to-face communication is more effective that electronic messages. It also gives consumers and business personal an opportunity to get to know each other on a different level.

These meetings also allow all parties to socialize and interact with each other, while setting a foundation for trust. We strive to provide our customers with the necessities to ensure a positive experience and if that means a face-to-face meeting needs to be planned in advance that is exactly what we will do.

Email Communication

Many contractors have a full schedule, leaving them little time to conduct personal business. This is why we offer our customers a variety of communication options, with one of them being email. Email is often utilized, because it offers a wide range of benefits, including expedient response, geographic barrier reduction and efficiency. We will respond to customer inquiries in an expedient manner, so if you feel comfortable communicating via email, be sure to take advantage of our email service.

Determining The Time You Have To Obtain The Bond

All too often Canadian contractors wait a week before their bond is due to begin looking for a surety company to issue them a bond. This can be a grave mistake, because surety companies perform in depth research on every applicant and their company, before they even issue you a bond. This can be a long and rigorous process, which could take a lot of time, so you may end up missing out on the admission period. Also, waiting till the last minute does not give you enough time to shop around and find the best rates. You may end up just choosing the first surety company that you come across, which may result in higher premiums and regrets.

Getting Online Quotes For Free

quote request buttonCompanies like Constructionbond and other surety companies are now offering online quotes. This allows contractors from other geographic areas to enter their information online and get a 100% free quote, without even stepping a foot into a surety office. This is a quick and convenient way to obtain several different quotes from companies in just a matter of hours. However, before you even begin looking for quotes you are going to need to compile some personal and business information together. Some of the information that may be required on the application is the exact name of the business, amount of the bond and personal and business financial quotas.

However, you need to keep in mind that just because you get a quote from a surety company, does not necessarily mean that you have been approved for the bond. If you like the quote and decide to go with a certain company, there will be more in depth information will be required. The surety will also perform a thorough background check on you and your company. Before everything is all said and done, you will also be required to sign an indemnity agreement. This agreement basically protects the surety company. It ensures that you, as the owner of the company will reimburse the surety company, in the event of surety claim payout.

And of course, once you’ve finally completed these steps, the surety company will approve your application and send the bond in your direction. In most cases, the bond will be delivered through the mail and it will generally arrive in a matter of days.

Everything You Need To Know About Canadian Surety Bonds

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Nov 242016

Everything you need to know

If you are a construction professional, you need to take the time to familiarize yourself with Canadian surety bonds. As a matter of fact, it would be really hard to be successful in the construction industry without these bonds. The reason for this is because just about all construction projects require contractors by law to obtain these bonds, before starting a project. Even if the law does not require them in your providence, most project owners will not hire you unless you obtain one of these bonds, because it gives them a sense of security.

Below, you will learn more information and tips about the different types of surety bonds available.

Construction Bonds And Contractor Bonds

A construction bond is basically an agreement that guarantees your customer or client that you will complete a job, as agreed upon in the contract. This type of Surety Bond will shield the customer in the event that you default on the contract.

A contractor bond is virtually the same thing and is oftentimes referred to as a contract bond. The only difference with this type of bond is that it can protect both sides. If one of the individuals surety bond 3 partiesmentioned in the contract does not meet their obligation, the others can file a claim with the surety company. These claims will oftentimes be an attempt to recover lost finances.

Another type of bond that you need to be familiar with is the bid bond. This type of bond will assure the project owner that the contractor will not raise the price of the bid or falter on the agreement. For instance, if the project owner decides to bid out a development project, they will often aware the bid to the lowest bidder. If the winning bidder decides to change the initial bid after being awarded the contract, this can definitely pose a problem for all involved. The bid bond will ensure the client that this will not happen, so everything goes smoothly.

How To Get A Surety Bond

Since most surety companies will issue bonds through an agency system, the first step to obtaining one will be to contact a professional broker or agent. This licensed professional will be able to guide you through the entire underwriting process, offer advice, and assist with managing surety capacity. Obtaining a surety bond will not be an easy process and it helps, if you are prepared.

Every surety company will have a different process in how they evaluate potential contractors. You will have to undergo a rigorous audit that is often referred to as the prequalification. This process will take quite a bit of time, because the underwriter will ask questions, look into your background, and collect information about you and your business. The surety company is going to make sure that you are able to meet your current and future obligations.

Prequalification Checklist

In order to better prepare, you need to know what the surety company will require of you. Below, you will learn about some of the things that a surety company may require from you.

  • The company may need a chart of your current employees and their responsibilities
  • They might need a detailed resume of your employees
  • A balance sheet that shows your liquid assets, financial net worth, and liabilities