on professional liability insurance company
Today all the professions are becoming
highly commercial and any kind of business is likely to be
charged for malpractices. So if you wish to protect yourself
and your business against lawsuit it recommended having
liability insurance. For many choosing a professional
liability insurance company can be an extremely
difficult task. Often insurance companies sell this insurance
to professionals like doctors, lawyers, architects, engineers
and other professionals. They provide coverage to them from
lawsuits relating to their professions. Depending on the type
of the business you have these carriers will be able to issue a
right policy that will be like your safety net.
What to look
for while selecting a professional liability insurance
It is recommended that you should seek this
insurance from the company with whom you currently
have some insurance with. This helps you to have
significant savings on your new policy as you have
multiple policies with the same insurer.
Some companies are endorsed and if you they offer
discounts to some specific business and profession.
So if you are a member to any such trade
association or specific profession than you may be
able to receive a discount on professional
Request for a deductible as this not only shows
that you are willing to pay certain amount of the
loss payment but it also makes you more likely to
save money on insurance premium. Most of the
liability insurance companies will be willing to
To get the best deal it is important that you
obtain quotes from atleast three different
companies. Provide exact same information to each
company and request same policy limits. This will
help you to compare and get the best quote.
It is best in the interest of the professional to
inform the insurance company if they are
considering of doing something new or different.
This can be launching of either a new product or a
service. This helps the insurance carrier to advice
you if there will be any additional premium. If you
fail to mention this information it may limit your
The professionals buying professional liability insurance is insured
and the insurance company helps to settle the claim against the
insured outside the court. This insurance protects against
malpractice, negligence and many other similar issues.
If any clients or patients file a lawsuit against the
insured the claim is covered only after the insurance
company determines whether the liability insurance covers
the claim. Only after the claim is covered they will pay the
lawyer to defend the insured against the lawsuit. They will
respond to the lawsuit and will provide all the necessary
help and advice to the insured so as to authorize the case
for settlement out of the court. They are also liable to pay
the insured up to an amount specified in the insurance
contract. If the insurance company fails to indemnify the
insured as per the insurance agreement will be in breach of
The coverage that the professional
liability insurance companies depend on many factors like
the perceived risk of your business, the state in which you and
your business operate, your revenues, number of people working
in your organization and the limits and deductibles you choose.
For a standard policy the premium charged by these companies
range from $1000 to $1450 that covers the insured for $1,
00,000 claims. The company you choose should be financially
stable and should be reputed in the insurance industry.