The insurance market in this sector can be challenging as businesses are faced with constant rate and deductible increases, restrictions in coverage, or an overall reduction in the number of insurers writing this class of insurance.

Currently, slip and fall losses are increasing for this class of business.

Roberts-McClure Insurance has built relationships with the major insurers of hospitality business in Canada and knows which of these markets will be best suited to meet our client’s needs. We insure the full spectrum  – food kiosks, pizza parlours, small restaurants, right through to some of Alberta’s fine dining establishments.

Lawsuits against Directors and Officers of both privately held companies, and Not-for-Profit entities are on the rise. Even the most progressive and conservative organizations are finding themselves vulnerable to an unprecedented number of issues. For this reason, we offers wide array of Directors and Officers insurance coverage to private and public companies, as well as Non-Profit organizations.

As a member of a Board of Directors, each member may be held personally responsible for errors, omissions, breaches of duty and wrongful acts related to their organizations activities.

Before accepting a position on a Board of Directors, it is critical to confirm that sufficient Directors & Officers insurance are in place.

Roberts-McClure Insurance provides integrated insurance policies that address four distinct concerns for mid-size companies:

• Directors and Officers liability
• Outside Directorship liability
• Employment liability
• Fiduciary liability

In response to the number of lawsuits, a form of insurance called Employment Practices Liability Insurance (EPL) has been introduced to meet the needs of the Canadian employer.

EPL refers to the liability arising from discrimination, sexual harassment and other workplace or employment-related practices.

An EPL claim may be brought against employers or fellow employees, by other employees.

A typical claim in Canada could include:

• Complaints before a federal or provincial human rights tribunal involving work place discrimination based on sex, race, colour, ancestry, place of origin, political beliefs or some other prohibited ground
• Complaints involving sexual harassment or sexual abuse in the workplace
• Lawsuits in the Courts relating to defamation or negligent supervision of the workplace in relation to sexual harassment
• Complaints before a Labour Relations Board relating to hazardous chemicals or substances
• Complaints before a federal or provincial Labour Relations Board relating to wages or other employment standards

It is our recommendation your organization consider these forms of additional liability protection. They are not covered by a standard Commercial/Comprehensive General Liability policy.

Employees in the course of their handling business funds or products, expose employers to theft losses. Coverage is available to protect your against substantial financial loss.

While it is difficult to think of your own employees as being capable of such deeds, unfortunately it is a reality. The following are samples of claims involving a form of employee theft for which a coverage called Employee Fidelity Bond would provide protection.

Sample Case #1

Over the course of two years, each time he issued a cheque reimbursing an employee for expenses, the thief, employed as an accounts payable clerk, issued a duplicate cheque to himself and then doctored the records accordingly. The thief had an intimate knowledge of his employer’s accounting and audit procedures which enabled him to execute the fraud.

The fraud was discovered when the employer’s bank contacted the controller and advised of discrepancies in the account from which the cheques were drawn. Internal audits failed to discover the fraud. All cheques were within the defaulter’s authority of $2,500.

The fraud occurred over two years and amounted to almost $1,000,000. As soon as it became aware of the loss, the company promptly investigated the thief’s assets as best it could and applied for a court injunction freezing all those assets including bank accounts and land.

In the end, the fidelity bond responded and repaid the company the amount of the loss less the deductible. The insurer was left to recover from the thief was only successful in retrieving approximately $800,000. It bore the balance of the $200,000 loss. Had there been no insurance, this loss would have been fully born by the Insured company.

Sample Case #2

Over the course of several years, a warehouse supervisor falsified bills of lading for the delivery of dairy products to retail clients. Normally a certain amount of shrinkage is expected within this industry as a result of spoiled product due to expiry dates. In this case, the warehouse supervisor, in concert with a select group of drivers, was artificially inflating the amount of shrinkage, selling the product for cash and pocketing the proceeds.

The fraud was only discovered when by chance a retail store’s accountant called the dairy to question why the GST input tax credits on their invoices did not match the volume of product they had been purchasing. By chance the warehouse supervisor who normally was responsible for reconciling that information was on holiday.

Due to the number of employees suspected, a private firm was hired to infiltrate the select group of employees and obtain the necessary information to criminally charge the employees involved. This loss involved millions of dollars of lost product.

Issues arising from professional errors & omissions liability are of great concern today. There was a time when the professional (or quasi-professional) was not a target for lawsuits. Times have changed. Today, the public and our legal system hold professionals to an increasingly high standard of care and responsibility.

Public attitudes, improved knowledge of legal and contractual rights and media attention have all focused the need for increased accountability on the part of the professional. This higher accountability makes the professional responsible for every action, however innocent; they do or fail to do.

Professional Liability Insurance offers protection from claims arising from negligent acts, errors or omissions on the part of a professional in the performance of service to a third party.

What is a negligent act? Mere evidence of negligence does not automatically establish a liability. For an action to succeed, there must be a duty of care owed to the claimant by the professional. It is the breach of that duty, leading to loss or damage, which can expose the professional to financial liability. The professional is not only liable for his/her own negligence, but may be liable for the actions of any person acting in a professional capacity on his/her behalf.

Professional Liability Insurance is one form of protection for professionals and for their clients. Coverage will protect assets and will help maintain a good reputation through the defence of allegations of wrongdoing even if frivolous or false.

For the client who has suffered some damages through the actions of a professional, liability insurance will ensure that there are adequate funds available to make amends for the wrong that has been done. A professional liability policy offers the Insured peace of mind by knowing that they have coverage in the event of a loss.