Professional liability insurance is a must-have for all enterprises, yet many people are unsure of its exact function, necessity and role in business. These practitioners see it as an unnecessary and costly expense, and either turn to the cheapest providers irrespective of their policy, or choose not to take it out at all. And yet, if something should go wrong, it is this much-resented insurance that will protect you against claims that have the potential to destroy your business and everything you’ve worked for.
Read on to find out how to choose the right professional liability insurance for you.
Do I Need Professional Liability Insurance?
People of almost every profession can benefit from a professional liability policy, from home inspectors to lawyers, nurses, accountants and architects. For most professionals, this insurance is known as professional indemnity insurance. In the case of medical professionals, however, it is called medical malpractice cover, and is offered by specialist bodies such as catlin.com. A third type, known as errors and omissions insurance is also available, and provides cover for professionals including estate agents, website developers and other technology creators.
Why Should I Have It?
Professional liability insurance is important because it covers you as a professional from claims that would not be included in your ordinary liability insurance. Standard business insurance tends to guard a business against property damage, personal injury, bodily injury and advertising injury claims. Professional liability takes this a step further, and protects you against scenarios like negligence allegations, inaccurate advice and misrepresentation.
How to Choose the Right Policy for You
Work Out What Your Business Needs Guarding Against
The first thing to do when choosing a professional liability policy should be to assess the coverage you already have and identify the scenarios that you’re not covered for. Once you have a list of this, determine how many of them you feel it’s important to guard against.
Make a Shortlist of Providers
Once you know what sort of policy you’re looking for, it’s important to do a little research online and amongst your peers to find out which companies others of your profession would recommend, and which insurance providers are to be avoided. Use this information to make a shortlist of around three providers whose reputations you’re happy with.
Identify Policies that Meet Your Needs
Insurance providers want to make sure that you get the best possible coverage, so if you take a look through the different policies on offer and are still unsure of what would be best for you, phone them and let one of their agents talk you through it. These professionals should have an in-depth knowledge of both your field and theirs, so they’ll know what’s best for you.
Evaluate and Assess the Different Policies Available to You
Once you know what different providers can offer you, compare your shortlisted policies on the basis of the coverage they offer, prices and premiums and any exclusions to their terms, along with cancellation guidelines, to choose the policy that works best for you.
Don’t leave the fate of your business to chance.