A professional liability insurance plays a crucial role in protecting you against legal claims for errors, omission and professional negligence. Also known as errors and omissions insurance policy, it indemnifies the policyholder against various claims which may arise due to a breach of duty, negligence, etc.; while discharging duties.
Considering the vital role played by professional indemnity insurance, it is essential to purchase the comprehensive insurance policy. But if your budget is tight, rest assured, there are ways you can reduce the premium on your professional liability insurance. Let’s discuss them:
- Actively manage your risks
The most obvious way to save money on premium is by managing the risk of receiving the claims. For instance, if you are a doctor, make sure you document all your patient’s visit activity, signed consent forms, etc. Be alert while discharging your professional duties and document everything related to your services.
- Keep your professional liability history clean
The fewer claims you make, the lower would be a premium on errors and omissions insurance policy. Here’s a way of thinking about it: every claim which you make has the potential to raise your premium rates. In order to maintain a clean record and keep insurance premiums under check, you can implement strategies to cut your risk of professional liability lawsuits. It will help you at the time of policy renewal.
- Go with a high deductible limit
In the insurance field, the deductible is the amount that you would have to pay at the time of claim before the insurer settles the remaining claim amount. By opting for a higher deductible limit, you can lower your premium rates. However, choose the deductible limit which you can afford. There is no point in having errors and omissions insurance policy if you would have to pay the substantial amount from your pocket at the time of claim.
- Compare errors and omission policy premium rates
Whether it is about online shopping or offline, you always compare and look for discounts while purchasing. Why should you pay more money when you can easily get the same thing at a better price? The same approach applies to errors and omissions insurance policy as well. There are various insurance companies which are offering professional indemnity insurance policies and therefore, it is essential to compare and choose the right policy.
You can also take the help of SecureNow, a leading corporate insurance advisor, in comparing and buying the right policy. By submitting a few details about yourself, SecureNow would generate policy quotes for you which you can easily compare to find the best policy.
While comparing, remember, the price should not be the only factor in purchasing the policy. Go with that insurer which offers comprehensive cover even if it means paying a slightly higher premium.
- Go with the right amount of insurance
It is essential to choose the right insurance coverage amount— if you chose low coverage, you would have to pay cost from your pocket at the time of claim. However, if you will opt for the high cover, you are paying an extra premium than what is required. It is necessary to avoid both the situations and opt for the right coverage amount.
Read more: What Kind of Liability Insurance Does a Consultant Need?
Case
After working as a senior cardiologist in M.J Hospital, Dr Rakesh Sharma has recently opened his own clinic in Pune. The doctor has decided to purchase errors and omissions insurance policy to get financial coverage against acts of professional negligence. Though Rakesh understands the importance of errors and omissions insurance policy; he doesn’t want to spend too much on the insurance policy.
Solution?
To trim premium cost, Rakesh should make sure that he actively manages all risks related to his profession. He should properly document all the patient’s details and keep a record of the signed consent form. Also, Rakesh can give his consent to share a substantial claim amount by opting for a higher deductible limit.
Further, Rakesh can take the help of online insurance broker like SecureNow whose team can help him choose the right insurance coverage by giving multiple insurance quotes.
About The Author
Amit
MBA Finance
Amit is an experienced insurance professional with 7 years in the industry, specializing in Errors & Omissions Insurance. Writing for SecureNow, he provides clear and insightful blogs and articles to help professionals understand the importance and nuances of E&O coverage. His expertise ensures that readers receive practical advice on protecting themselves from potential liabilities and professional risks. Dedicated to making complex insurance topics accessible, Amit stays updated on industry developments, delivering valuable content that empowers professionals to make informed decisions about their E&O insurance needs.
