With so many different insurance companies in the market today it can make it difficult for professionals to choose which one they will do business with. There are many factors that go into consideration when choosing a business insurance policy such as Professional Indemnity Insurance. Understanding these factors can help professionals better obtain insurance coverage.
Part of purchasing a Professional Indemnity Insurance should of course include finding a good deal. This does not mean that you must sacrifice the quality of your insurance coverage in order to obtain a low premium, but there are some other things that you can do. Many firms already have risk management protocols in place to help reduce the risk of certain situations arising. It is important to make your insurance broker aware of your risk management protocol. By having these procedures in place it can make your business less likely to be served with a negligence claim. Another thing would be to maintain a record of few complaints and claims. As time goes on if you have not had claims made against you your insurer is likely to lower your Professional Indemnity Insurance premium.
Another way in which to maintain reasonable insurance premiums is to avoid the temptation to diversify your efforts. Typically Insurance Underwriters prefer firms that have worked hard to obtain expertise in their field. By accumulating this knowledge it makes them less likely to have a claim filed by client.
When purchasing a Professional Indemnity Insurance it is important that you not only understand your coverage but the exclusions that are part of your policy. One of these would include prior knowledge which means that if a member of the business knew that a claim was going to be made against them prior to the purchase of a policy been any claims from this can be denied. If the claim is made against a firm that is not named in the policy it will too be denied. Claims must be reported within a reasonable amount of time. If they’re not they can face denial.