There is no doubt that errors and omissions insurance is crucial to any company that wants to survive a negligence claim. Even if you understand how important this policy is, it is no doubt that you would not want to spend unnecessarily higher than you should. After all, you are running a business and minimizing costs while maximizing profits is your main agenda. So, the question is, is there a way you can eat the cake and still have it?
Here is how you can get an affordable E & O insurance cover without having to mess up your company’s finances.
Compare quotes from many providers
Just like when buying a house, a car or any other major purchase, it pays to shop around. Several insurance companies offer this policy. Each of these businesses has its principles and guidelines. Some companies might have coverage that suits your business more than what is found in another company.
Remember that cheaper is not always better. It is important to source for a policy that strikes a balance between cost and coverage. Maximize your protection as you minimize the premiums. Isn’t that awesome? Therefore, look out for an affordable but suitable cover for your profession.
This advice might sound unrealistic at first. You might be wondering, if I have to avoid claims, then what is the need for an E & O cover in the first place? The truth is that you should not rely solely on your policy for protection. Instead, strive to evade obvious claims. Allowing avoidable claims to pile up makes you look riskier to the insurance companies and consequently might lead to an increase in your deductibles.
Think of your error and omission insurance as your car insurance. It is appropriate when you have a serious wreck and ask for total compensation. On the other hand, if you keep asking for small claims, your rates will only go higher. Similarly, E & O insurance claims might cause an increase in your premiums. Also, most insurance companies are hesitant to insure professionals who have a long history of applications and errors, unless the expert is willing to pay heftily for the insurance.
Work with a provider who understands your business
There is a reason why you go to a home inspector when buying a house and a reason why you visit a dentist when you have a toothache. You want someone who is well versed with your issue as they will be able to address your issue. It is no different for insurance. An insurance agent or provider who understands what you do will get you a policy that suits your risks and budget. They also know the add-ons you require.
Go for higher deductibles
When choosing any insurance cover, the deductibles are a major factor. Usually, the higher the deductibles, the lower the premiums. The key element is that in the case of a claim, your business is responsible for a significant share of the payoff. This is worthwhile if you are concerned about a costly claim.