Member Insurance Program
The Canadian Public Relations Society has partnered with LMS PROLINK Ltd to offer insurance solutions tailored to the public relations industry and the professionals who compose it.
The following Insurance Programs are available exclusively to CPRS National members, who will enjoy significant savings on premiums for:
- Do Canadian PR Firms Need Liability Insurance?
By: Derrick Leue, President, LMS PROLINK Ltd.
To ere is human, but to sue is American. As this idiom facetiously notes, our Southern neighbors have developed a nasty reputation as an aggressively litigious culture. Historically, this reputation was not extended to the Canadian legal landscape but alarmingly this trend has begun to shift. Lawsuits are on the rise in this country and present an enormous exposure for individuals and corporations. Our experience with CPRS members indicates that most PR Professionals do not realize that the appropriate liability insurance will afford them valuable protection from lawsuits instigated by a third party.
The Liability Insurance Options For PR Professionals
Professional Liability / Errors & Omissions Liability:
Since our February article in Communiqué we have received many inquiries from CPRS members wondering how a Professional Liability policy will protect them.
Professional Liability insurance, also known as Errors & Omissions ("E&O") Insurance will protect you in two important ways:
- You are entitled to legal defense coverage if allegations of negligence associated with your professional services are brought against you by a third party (i.e., a client), whether the claim is frivolous or not.
- As a result of the lawsuit, the insurance company will pay the damages on your behalf from any lawsuit in which you are held liable.
It's important to note that the average hourly rate for a defense lawyer in Canada is $350/hour. Therefore, a CPRS member who is forced to submit a statement of defence will automatically be required to pay thousands of dollars to protect themselves.
Commercial General Liability:
The vast majority of PR firms that lease office space are required by their Landlords to purchase CGL insurance. This coverage offers protection in the event of bodily injury or property damage sustained by a third party. Furthermore, if you or your firm is involved in planning or managing events on behalf of your clients then your risk exposure is much higher and you need to have the correct CGL policy in place to avoid paying an enormous settlement. Under our CPRS Insurance Program we can extend your CGL policy to provide event specific liability coverage. This unique CGL policy will protect your interests and save you money.
Directors & Officers ("D&O") Liability
D&O Liability insurance is not simply for publically traded companies. There are so many scenarios in which directors or officers of private companies can find themselves facing personal legal responsibility. Many CPRS members feel they are immune from personal liability because they have incorporated. While incorporation offers significant protection, it is not an exhaustive form of insulation. In many legal scenarios, the officers, directors and shareholders must bear personal responsibility for problems that arise in the corporation's name.
D&O Liability policies have broadened in scope and now cover Employment Practice related liabilities of the corporation. Common examples of claims related to employment matters are:
- Wrongful dismissal;
- Harassment;
- Failure to employ; and
- Human Rights Tribunal investigations.
D&O insurance protects the actual incorporated entity as well as its directors and officers. The premiums for D&O insurance under the CPRS program start at $1,500 for PR firms with revenues of less than $2,000,000.
CPRS Member Insurance Program
Our CPRS program offers industry leading coverage options for Professional Liability, Commercial General Liability and Directors & Officers Liability specifically tailored to the public relations industry. Our premiums are typically 15% lower than those available through the general insurance marketplace.
To Learn More About the CPRS Insurance Program:
Please contact David Taylor at LMS PROLINK Ltd.
P. 800-663-6828; ext. 7713
E. davidt@lms.ca;
Website: LMS.CA/CPRS
- Intellectual Property: The Changing Face of Liability in the 21st Century
By: Derrick Leue, President, LMS PROLINK Ltd.
As the landscape of communications in the workplace and the world continues to shift, it is important to contemplate the new risks associated with these vast changes. Today's communications environment can be characterized as increasingly hyper-competitive and instantaneous. Thus, it is necessary for organizations of all types to consider the insurance coverage options available to them in light of the global changes they confront.
The Basics:
Historically, organizations (regardless of their field or focus) simply purchased Commercial General Liability insurance (CGL). CGL insurance offers protection in the event of bodily injury or property damage sustained by a third party. Given the settlements awarded in relation to bodily injury claims historically, these coverages remain incredibly valuable. Furthermore, this coverage is critical for Public Relations firms managing events on behalf of their clientele. However, for CPRS members who do not manage events, CGL coverage fails to protect them against their most significant risk exposures.
Professional Advice and Intellectual Property:
In an increasingly litigious society, today's professionals must act diligently to protect themselves, their businesses and their reputations from claims of negligence. Professional liability insurance or Errors & Omissions Liability (E&O) offers this protection. Regardless of the merit of an E&O claim, an accused professional is required to issue a statement of defense. Retaining a Lawyer with professional liability experience costs at least $350 per hour however E&O insurance covers these legal defense costs.
Once again, these traditional coverages remain incredibly valuable. Nevertheless, tremendous advances in electronic communication over the past decade are having a profound impact on the exposures that confront all organizations. The insurance industry has responded to these changes by developing unique types of coverage which directly address liabilities related to privacy, intellectual property and professional negligence in the twenty first century.
Claims related to infringement on a third party's intellectual property continue to rise due to the increasing prevalence of ubiquitous social networks such as Facebook, Twitter and LinkedIn. While there is a temptation to view these social media outlets as harmless, it is important to remember that businesses are liable for the content they generate and post on their websites. Extreme diligence is necessary to ensure that copyright infringement and the disclosure of confidential information are avoided. Furthermore, the independent actions of employees on the internet (if deemed to be within the scope of employment) become the general responsibility of the employer and greatly increase an organization's exposure. Intellectual property insurance covers CPRS members against allegations of infringement of copyright, title, slogan, trademark, trade name, and service name as well as allegations of plagiarism, piracy and the misappropriation of ideas. Patents are generally not covered.
Beyond intellectual property infringement, increased socialization via technology and a growing dependency on the aforementioned social networks leaves both businesses and individuals susceptible to a variety of cyber attacks. The proprietary data contained on an organization's computer networks are a clear vulnerability. The improper handling of employee and customer information will undoubtedly have costly ramifications. Furthermore, the interruption of a company’s online services due to a technical failure or an outside attack represents an unwelcome opportunity for lost business and diminished reputation.
In light of these exposures, coverage for Cyber liability has continued to develop in recent years. Modern Cyber liability policies protect companies from losses associated with cyber theft or unauthorized access to proprietary data. In addition, coverage extends to e-business activities, computer viruses, denial of service attacks, as well as fraudulent e-commerce transactions. In the past year, a number of high profile organizations have suffered a major breach to their computer networks. Aside from the tremendous costs directly associated with repairing the damage from a cyber attack, the loss of trust and loyalty suffered by an afflicted organization is potentially insurmountable. The good news is that there are options available to organizations and CPRS members which can ensure full protection in the face of such a tremendous loss.
CPRS Member Insurance Program:
The CPRS insurance program (through LMS Prolink Ltd.) is an insurance solution customized specifically for the public relations industry. Our program offers:
- $500,000 in Professional Liability coverage and $1,000,000 in Commercial General Liability coverage starting at $1,000.
- Up to $5,000,000 available in Professional Liability coverage;
- Up to $10,000,000 available in Commercial General Liability coverage;
- $250,000 in Intellectual Property Liability coverage is available at no extra cost;
- Office Insurance Packages starting at only $380;
- Further Cyber and Privacy Liability coverage options are also available.
Our CPRS insurance program boasts premiums that are typically at least 15% lower than those policies available through the general insurance marketplace.
To Learn More About the CPRS Insurance Program:
Please contact David Taylor at LMS PROLINK Ltd.
P. 800-663-6828; ext. 7713
E. davidt@lms.ca;
Website: LMS.CA/CPRS
REMINDER FOR CPRS INSURANCE PROGRAM RENEWAL: CPRS members currently insured in the CPRS Insurance Program will have received their 2012 renewal packages via email from Matthew Calvin on Tuesday Jan. 17th. Please email MATTHEWC@LMS.CA if you did not receive your package.
- Professional Liability/Errors & Omissions Insurance
Commonly known as Errors & Omissions (E&O) Insurance, it is increasingly becoming a requirement for all professional services providers in the business world. Professional Liability covers mistakes committed while performing professional activities within the scope of being a professional public relations practitioner. The protection covers allegations, whether factual or not, and, of course, your legal costs to defend a civil suit.
The CPRS program offers:
- protection for your business and reputation from all professional liability lawsuits and compensatory damages;
- liability limits ranging from $1,000,000 to $5,000,000;
- critical protection for as little as $400 per year for individual members and $600 per year for firms; and
- a 15% premium discount to APR accredited members.
Click here to apply
- Commercial General Liability Insurance
This insurance covers your general business activities such as visits and meetings with customers, company events, libel and slander, advertising, and so on. Many corporations and government/public sector organizations require their suppliers to maintain $1,000,000 or $2,000,000 in CGL coverage. and many property owners require their tenants to maintain $2,000,000 to $5,000,000 in CGL coverage.
The CPRS program offers:
- Liability limits from $1,000,000 to $5,000,000.
- CGL coverage for as little as $200 per year for individual members and $500 for firms.
Click here to apply
Learn more about E&O and Liability Insurance
- Property Insurance
This will provide protection against losses related to the physical assets of the business purchasing the insurance including buildings, business contents, laptops, business interruption, crime, and so on. Every business needs to protect its property – from buildings and furniture to computer equipment and money/securities.
The CPRS program offers:
- protection of assets for as little as $350 per year. Property insurance outside of this CPRS group program will typically carry a minimum annual premium of $750; and
- a 5% credit if the applicant is 5 years claims free!
Click here to apply
- Group Benefits Plan
Members have access to comprehensive coverage at significantly discounted rates. Flexible coverage options available for individuals, couples, single parents, & families. Benefits include Health & Dental, Members Assistance Plan, Life, AD&D, and Disability Insurance.
The CPRS program provides:
- access to comprehensive coverage at significantly discounted rates;
- flexible coverage options for individuals, couples, single parent families, and families;
- extended health care, dental, life insurance, accidental death & dismemberment, short and long-term disability and members’ assistance plan; and
- optional extended coverage for both life insurance and critical illness insurance.
Learn more.
Click here to apply.
- Disability
These plans offer a full line of disability insurance products to replace personal income, cover office overhead expenses or provide funding for the buy out of a disabled shareholder's interest in the business. The average member will realize significant savings.
Learn more.
Click here to apply.
For more information on Professional Liability, General and Property Insurance contact:
Derrick Leue
CPRS Program Manager
Tel: 416-644-7717
DERRICKL@LMS.CA
For more information on the Group Benefits Plan contact:
Jeff Clearly
Group Benefits Coordinator
Tel: 416-644-7718
JEFFC@LMS.CA
1-800-NO-DOUBT (663-6828), www.lms.ca/cprs
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