Being a professional in any field can be quite stressful. You are held to a certain standard of care. If someone thinks you have been negligent or have not held yourself up to that standard of care you may be sued. This is exactly why you are thinking about purchasing or renewing professional liability insurance. You may not be sure if you should speak to an agent before you buy a policy.
If you do not speak with an agent, you may make some mistakes by attempting to buy insurance on your own. There are many confusing terms that are in these policies. Having someone to explain these terms is very helpful. While there is often a definitions section, this is not going to be very helpful in answering specific questions you might have.
One of the things people often do not understand when they look into professional liability insurance is the types of coverage which is available. There are two basic kinds of professional liability policies. These are called claims made and occurrence policies. With the claims made policies you are only covered while your policy is in effect. With occurrence policies you will be able to make claims on anything that occurred while the policy was in effect, even if you no longer have the policy.
Some people forget that they need to check into the financial strength of the insurance company. Even if you have an occurrence policy, you would not be able to make a claim if the insurance company you had been insured with was not around anymore. If the insurance companies are not stable they may go out of business.
People often do not understand the limits of their policy. If you do not understand your limits, you may think you have a certain amount of coverage, but the terms can be tricky. Making sure that you understand these terms will help you keep from coming up against problems that you did not anticipate.
There are some policies that have legal fees included in the limits of liability. Other policies have the legal fees as an addition. You need to know whether you have insurance that is covering you more or less. Whichever policy you choose will be fine, as long as you know what you are getting.
Getting the Right Coverage
Getting the right amount of coverage is important. Speaking to an agent can help you decide how much coverage you need. There are many people that are confused about how much money they need to have in coverage. If you allow yourself to get too little coverage, you may find yourself in trouble later.
Consider the amount of risk your company will be taking when you are doing a project. If you have a very risky job, you may want to get a considerable amount of coverage. If your job is a small job that would not be likely to have a high amount of money asked for in a settlement, you may want to get a lower amount.
One of the best ways to get the best coverage at the best price is to compare different companies and their policies. You can speak with multiple agents that will be able to show you their best policies. Whenever you do this, you can see which companies offer what at what prices. Taking this extra time to do some research will allow you to get the best coverage without having to pay a very large premium. You could save thousands of dollars over the years.