How Can I Reduce My Professional Liability Insurance Cost?
As a medical professional or any sort of business consultant, you already know how important it is to have a comprehensive insurance policy to protect you from any legal claims related to malpractice and negligence (medical professionals) or errors and omissions (business professionals). However, making sure you’re protected needn’t break the bank. We’ve put together this short guide to help you keep your professional liability insurance costs down, so you can be sure you’re getting the best value for your money, while also remaining covered in the case you become the subject of a lawsuit.
Ways to Reduce Professional Liability Insurance Cost
Keep a Clean Record
As with most types of insurance, any previous claims can have a huge effect on your insurance premium. After class of business and revenue, claims effect your rate the most. It goes without saying but making sure you reduce the chances of any claims arising by taking due care while you practice can make a big difference to your overall premium. Be sure to document everything, including client and patient visits, consent forms, and any other paperwork related to your service.
Don’t just get a single quote when you’re searching for an insurance provider. These days there are online insurance companies with drastically reduced overhead compared with traditional insurance companies, allowing them to charge lower premiums. At NOW Insurance, in addition to low overhead costs, we leverage cutting edge technology such as AI and machine learning to assist our underwriters, making them much more efficient. These cost savings are passed on to our customers in the form of lower premiums for similar policy terms provided by competitors.
It’s easy to shop around and get a few quotes, but make sure you are comparing apples to apples. Check the policy terms, exclusions, limits and deductibles between insurance companies.
Check Different Deductible Limits
The deductible limit on a claim is the amount you’ll be paying out of pocket in the event of a claim before your insurer will cover the remaining amount. If you can afford it, choosing a higher deductible limit can mean a smaller annual premium, but only go with an amount you’ll be able to pay at any one time throughout the year in case of a claim.
Choose the Right Coverage for You
Not every policy will be right for everyone. Make sure you choose a policy that suits your individual needs, and the needs of your practice or business. Insurance doesn’t have to be one size fits all. NOW Insurance is proud to be able to offer tailored policies based on your unique situation. A company that has your interest at stake will ensure you only pay for what’s required, and not for any unnecessary extras.
If you’re uncertain about any aspect of your policy, it pays to reach out. The insurance company should be happy to discuss the details of your policy to ensure that you’re getting the policy that’s right for you and show you how transparent they are willing to be.
Start the Renewal Process Early
When the time comes to renew your policy, it’s advantageous to think about it ahead of time. Take stock of any professional changes, or changes to the business. This could include changes in your hours, the types of clients/patients you serve and your place of business. Renewal time is also a good opportunity to gauge what’s happening in the broader insurance market and find out if there are any other steps you can take to keep your premium as low as possible.
Other Factors Affecting Your Policy
Some factors that affect your policy that might be more difficult to change but are still useful to bear in mind. One of the most important factors can be the location where you work, as some locations have statistically higher claim rates than others. Areas with a high population can also command a higher premium. Another factor can be the number of employees you may have, as each member of your staff can increase your risk.
Finally, one of the most important elements that affect the quote you can get is the number of years you’ve been in business. Depending on the profession, those who’ve been working in their current profession for longer could be viewed as a lower risk than those just starting out, even if they’ve never had any claims against them.
Get a Quote!
Professional liability insurance can be a minefield, but hopefully, you’re now a little more informed. NOW Insurance provides policies that are simple, fast and affordable for healthcare professionals, small business and consultants.
Get a quote today in under 3 minutes with our easy online application.
Contact us with any questions about coverage.