What Causes Professional Liability Premiums to Go Up?

What Causes Professional Liability Premiums to Go Up?

Table of Contents

Buying professional liability insurance is important for any professional who will be offering a professional service or professional advice. A professional service or professional advice simply means that you claim you know what you are doing; you declare yourself a professional in the field that you are working in. If you have done this, you are to be held to a certain standard of care by your clients.

Rising Costs

Checking the different companies that will offer coverage for you and your business is very important. If you do not check around to different companies, you may find yourself spending a great amount of money over the amount you should be spending. The costs of this type of insurance seem to be rising, but there are things that you can do to make sure that your premium payments do not go up.

If you already have coverage for your business, there is one primary reason that you premium would go up. That reason is because you have made a professional liability claim. If you make a claim on your policy, your insurance may go up. While this is not true in all cases, this is what most often will happen.

If there is a small case brought up against you that you can handle on your own, it may be in your best interest to take care of it without filing a claim. Many times these cases will be slightly over the deductible amount that you have chosen, so it would just make sense to pay the cost on your own so that you do not have an increased premium. Every case is different, however, and you need to make certain that you do what is right for you.

Lower Costs

Before you buy insurance, or if you are changing the company you want to get your coverage through, you are able to do some things that will lower the amount of money you pay in premiums. Researching the different ways to lower your premium will enable you to save funds for your company. Saving money is good, but you always want to make sure that the policy you get is going to cover you and support your needs.

One of the things that you can easily do to lower the amount of premium that you pay is setting your deductible at a higher rate. Whenever you set your deductible at a higher rate, you will be able to have a lower premium because the insurance company would not have to pay a certain amount of the claim until you had covered the deductible. Be careful when you are picking your deductible. While you want to have lower premiums, you also want to think about how much money you have set back to pay on your deductible.

Lowering the cost of your insurance premium could be as easy as switching companies. Many people find they are overpaying at the company they are with whenever they take the time to do some research. The only problem is that many people fail to take the time to research. Taking out this extra time could mean that you save thousands of dollars.

Now that you know what causes professional liability premiums to go up and what you can do to keep your premiums lower, you can get the best price on your insurance. Every professional should have professional liability insurance and plenty of it. If you fail to cover yourself with insurance, you could find yourself and your business in a great deal of trouble because of a client lawsuit.