Approved Guidelines for Insurance Against Errors and Omissions
Insurance Against Errors or Omissions
The 2008 CSGA Annual Meeting passed a resolution asking CSGA to investigate the potential of a national errors & omissions/damages policy for its members. Currently, three seedsmen’s errors & omissions insurance packages are available in Canada.
Seed Industry Plus is a standalone insurance program offered by Farrell Agencies Ltd. of Yorkton, Saskatchewan to all CSGA members. Since 1994 this errors & omissions package was being offered in Saskatchewan and Manitoba and has, more recently, been endorsed by the Saskatchewan and Manitoba Branches. Through the encouragement of CSGA, Farrell Agencies is now taking the program nation-wide. To learn more about the features of this insurance package, you can use the toll free number 1-800-268-3675 or access applications on-line at www.farrellagencies.com.
Seedman Errors and Omissions Insurance is available to seed growers and distributors across Canada through HUB International Insurance Brokers. The HUB Seedman’s E&O policy provides broader protection for the Seedman than what is typically available. Instead of being triggered by 4 or 5 specific events, the policy responds to claims arising out “all activities of the Seedman business”. There are fewer exclusions and, where desired, can include General Liability protection as well. HUB International is the largest insurance broker in Canada with offices in B.C., Alberta, Saskatchewan, Manitoba, Ontario, Quebec and the Maritimes. For more information, contact Jim Henry at 1-800-263-4927 or firstname.lastname@example.org.
Seedmen’s Errors and Omissions Insurance Program is available to all CSGA members through the brokerage services of Marsh Canada Ltd. Although this is a new offering to the market, Marsh is a world leading insurance broker and risk advisor providing advice to clients in over 100 countries. To learn more about the features of this insurance package, you can use the toll free number 1-877-585-3459, email to email@example.com or access their web site at www.marsh.ca/secan.
Seedsmen’s Professional Liability Insurance is available from Dalton Timmis Insurance Group, with offices in Ontario and Alberta. This errors and omissions product is available to seed growers across Canada. Dalton Timmis has gained exclusive access to this insurance product that has been offered to members of the International Seed Federation for several years. Members of the seed trade in Canada may have been previously aware of the program and its benefits. To learn more about the features of this insurance package, contact Shawn Stephens at 1-888-385-8466, email firstname.lastname@example.org, or visit their web site at www.daltontimmis.com.
The CSGA recognizes there are differences among these three programs and we also recognize each individual seed grower’s needs are unique. We, therefore, encourage you to contact all three companies to learn the most you can about the options and features that best suit your operations.
Reducing Your Liability Risk?
Errors & Omissions Insurance can reduce the cost to you associated with the liability that accompanies operating errors or omissions. We are all human and errors or omissions do occur in operating a business, whether we like it, or not. Several businesses, landscaping nurseries for example, utilize warranty statements in an attempt to reduce liability associated with performance of their products.
Warranty statements are hardly a cure-all in terms of waiving liability – the courts will ultimately decide the presence or absence of liability and the corresponding level of liability. A warranty statement does, however, educate or alert the buyer that the seller wishes to limit their liability associated with the product. Such education and awareness could go a long way in avoiding Statements of Claim, particularly when the Statement of Claim is somewhat questionable.
You may wish to consider placing a statement of warranty limiting your liability on your company invoice. To do so, you should speak with your legal counsel on the wording that best suits your operation. The following statement may serve as a starter for you:
The buyer’s improper care and handling of this seed can nullify all stated and implied guarantees, or warranties, associated with the certified seed.
Doing Business in a Litigious Society
The 2010 CSGA Annual Meeting provided a professional development session by Jason Mohrbutter on Doing Business in a Litigious Society. The overall goal of the presentation was to explain the basic foundation of a legal action involving seed in order to help growers better understand the type of practices that can be adopted to best position your business in relation to seed litigation. This paper was to complement the presentation and is being posted for the betterment of all CSGA members.