Whenever you are thinking about getting professional liability insurance or lowering premium amounts, you may be wondering how high your deductible should be. There are quite a few things that you should think about before you make that decision. If you set your deductible too low, you may end up paying premiums which are too expensive. If you set your deductible too high, you may not be able to pay the deductible in the case that you were sued.
Making the Decision
While you are trying to figure out how high your deductible for your professional liability insurance should be, there are a few factors that you should consider. The first thing that you should think about is the fact that the premiums that you pay on this insurance are tax deductible. You also need to think about the fact that you may not want to pay high insurance premiums just in case you never have to use the insurance.
The best thing that you can do when trying to make this decision is find a happy medium. Find a deductible that will allow you to get a good premium price, but will also not be too high in case you have to pay the deductible. Whenever you do this, you are playing it safe, and will be able to get the best premium possible.
Do I Need Insurance?
Some people try to get out of having professional liability insurance all together. These people either do not want to put the additional money out, or they believe that it is not necessary. If you are a professional who gives advice or offers a professional service, it is important that you are insured.
Many times people think that the only people that get sued are medical professionals. While it is true that medical professionals may be sued a great deal, it is not true that they are the only people that have lawsuits against them. Every professional is expected to maintain a certain standard of care for their clients. If one of your clients believes that you have breached this true, they may be able to sue you.
Whenever you have professional liability insurance, this will help pay for the legal costs that you might incur. If you need a lawyer, need to pay court costs, or a settlement, your insurance is going to help you pay. All that you have to do is pay the deductible first.
One thing you must remember is that your insurance has to be maintained. Once you start the insurance, anything that happens after that will be covered, unless you let your policy lapse. This is why it is so important for you to keep up your policy. Even if one of the clients you had whenever your insurance was in action files a suit against you, you will not get help from your professional liability insurance unless you are paying the premiums at that time. Setting up automatic payments is a great way to make sure that you do not accidentally allow your payments to lapse.
Whenever you want to get the lowest rate on your policy it is good to think about your deducible. How high should I set my deductible is a good question that has to do with the amount of money you will pay on your premium. The higher that you set your deductible the lower the premium. Comparing professional liability insurance companies will enable you to get the best price on a policy. Make sure you compare a few different companies when buying insurance.