International Organization of Nutritional Consultants

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The FAQ’s

Q. Why is Errors & Omissions Liability coverage important?
A. You are culpable for all of your actions and activities both directly and remotely. Coverage is for alleged as well as actual wrongful actions that you are accountable for. Chances are you are not infallible. Chances also are, that if your client has a related loss...your client will seek recovery from you. Why risk your livelihood? Know that, virtually every professional business with whom you deal … has Errors and Omissions protection. The attainment of errors & omissions liability coverage for your nutritional consulting services is a mandatory requirement of IONC membership.

Q. What does the $1 million or $2 million dollar liability benefit cover?
A. You are covered for costs charges and expenses in the event of litigation against you. These include legal defence costs as well as the payment of any court awarded settlements.

Q. Should I acquire coverage with a $1 million dollar limit of liability or a $2 million dollar limit of liability?
A. As a general rule, always buy as much coverage as you can afford. In our courts, settlements and awards are constantly rising to new heights. For this program, on average, the cost to increase your coverage 100%, from $1 million to $2 million, is around 30% more premium. Please note that all coverages acquired in this insurance program must share the same limit of liability.

Q. What is the difference between E&O and CGL?
A. Errors & Omissions (E&O) Liability Insurance is also known as Professional Liability Insurance and Malpractice Insurance. It is a coverage designed to protect you for claims that arise from negligent services (or alleged) that are unique to your professional services as a nutritional consultant. If you are sued on the grounds of giving improper nutrition advice to a client, the E&O policy subject to normal limitations would respond. Comprehensive General Liability (CGL) Insurance is also known as Commercial General Liability Insurance and Business Liability Insurance. This type of Liability coverage is designed to protect you from bodily injury and property damage claims to third parties that arise from your negligence that is not professional in nature while providing your services. A classic example of this type of negligence would be a client that slips and injures themselves on a wet floor while on your business premises. If you are sued for bodily injury and property damage, then the CGL policy will respond. It is also important to note that CGL includes products liability coverage that would respond if you recommend a faulty product to a client and they sue you and the manufacturer of the faulty product. It is important to remember that although you may be able to easily prove that you are not responsible for the product being defective, the defence costs to prove this can be quite expensive.

Q. Am I covered for work in another province? The United States? Elsewhere in the world?
A. The IONC Member Liability policy that is facilitated through LMS PROLINK Ltd. states that coverage applies “only to claims which give rise to judicial proceedings first brought against the insured within Canada.”

Q. Are premiums tax deductible?
A. Yes. Premiums are a business expense and fully tax deductible.

Q. If a claim is made against me by one of my clients, what will I be required to do? That is, do I need to file a report or provide any supporting documents to prove that I acted according to professionally accepted standards?
A. Always report any information that there is potential for a lawsuit immediately to your broker, no matter how small or trivial it may appear! This is your legal duty to the Insurer and a claim can be denied on the grounds that you did not act in full cooperation with the Insurer if information of this nature is not reported in a timely manner. The Insurer and/or LMS PROLINK will assist you in your defence strategy.

Q. If a client files an E&O claim against me several years after my services were provided; can I expect protection from the Insurer even if I don’t have current coverage?
A. Professional Liability policies generally respond on the basis of claims-made. As such, should a claim come “to light” it is reported and covered under the policy in force at the time and NOT the policy in force when the occurrence took place. Therefore, should a claim be reported after lapsing or canceling the policy, there is no coverage to respond, regardless of whether the occurrence was during a period when coverage existed. Furthermore, if there are any gaps without coverage between the policy period when an alleged negligent service was provided and the policy period when the claim is filed, there will be no coverage. Therefore, we always recommend to our clientele that they continue their coverage after they discontinue their professional services for a reasonable period.