Why Professionals Should Buy the Professional Liability Insurance

Professional liability insurance is also known as the errors and omissions or malpractice insurance. Professional liability insurance consultants sell their insurance policies to engineers, doctor, real estate brokers, accountants, and other licensed professionals. Such professionals require addressing business liability risks that arise in the course of rendering the services.

 

How Real Is The Risk?

Most of the times, the licensed professionals will downplay the risks associated with the jobs. However, professional liability insurance consultants offer a word of caution to such people. If any business project goes awry, consultants without malpractice insurance risk going to court and pay for the losses incurred.

For instance, a software developer may think his software will not fail. Sadly, the system fails, and the client decides to sue. Besides losing a client, be prepared for court battles and legal fees. Here are a few realities:

 

  • The tech business

Technology has its fair share of challenges, and the industry is highly susceptible. Also, there are no clear standards and laws that govern the industry. Sometimes, there are no clear rules on what is acceptable to the client. There are few legal precedents in the tech industry

 

  • Be wary of dishonest and dissatisfied clients

Sometimes, a dishonest or dissatisfied client could cost you time in endless court cases or loss of money in legal suits. Sometimes, the client will allow negotiating with you and others may decide to sue.

 

Benefits of Professional Liability Insurance

The general liability insurance covers not all claims. Claims such as inaccurate advice, negligence, and misinterpretation fall under the professional liability insurance policy. Protect your business from such risks.

The error and Omission insurance pays the cost of the judgment against the accused and the cost of legal defense up to a certain limit.

What does it cover?

There are two types of policies:

  • Occurrence-It covers any claims that took place within a certain coverage period. It applies even after the policy lapse, for instance, if you retire or change careers.
  • Claims made– The policy has to be in effect when the event takes places, and a lawsuit is filed.

However, it does not cover: Financial loss due to dishonest or fraudulent activities

 

How much is the premium and how is it calculated?

Several factors determine the premium such as the size of the firm, the clients and services offered deductibles and limits chosen. A firm with 15-20 employees would pay about 1.5-2.5 percent of the gross fees as long as they have a good history loss record.

 

Looking for an Insurance Broker in Barrie

Insurance can be pretty hard to deal with if you do not know how to look for the right one, which is why looking, would be the best option you can take for you to find the best insurance plans out there that money can buy.

Always remember that when looking for an insurance broker, your main purpose should be to look for the right kind of protection plans, and what better way for you get the best, than by hiring an insurance broker. These people are good at what they do, and they will be able to give you options that they think will be best suited for your interest.

 

Insurance brokers are also the best at haggling with prices when it comes to insurance plans. They are made sales men and women, and their main goal is to get the lowest insurance plan for you even If it means that they risk a lot to get you that good deal. Make sure that you trust the broker though, so that you can be sure that they will not back stab you with prices.

If you do not know how to look for an insurance broker, here are some ways on how to search for insurance brokers in Barrie:

  • Seek brokers online – technology has become a very good way to search for information. If you want to find a good and reputable broker, it is important that you scout online for good websites that can provide you with the information that you need. When looking at a website, make sure that you can see all the information of the broker, such as the insurance plans that he has sold, number of satisfied customers, educational background, etc. this will give you a better reason for why you want to hire that specific broker in the first place. Before making any decision final, always make sure to do your homework, because this will become a huge benefit for you in the long run.

  • Select and compare – when you are dealing with finances, it is important that you choose a person who can handle your finances with care and without you worrying about if they loose it or not. Money is a key factor here, if you were to entrust just any broker off the Internet without making sure if they can handle your money efficiently, you can end up loosing more than you have already started with. Always make sure that you find a good broker and compare them side-by-side before making your decision final.

 

Ask for suggestions from friends and family members – asking for referrals from friends and family is also a good way to find out if the broker is good or not. Chances are, if the broker is good at what he does, and you can entrust him with your money, your family members and friends, would be the first one to tell you that this person is a good broker, and will be able to deliver on the tasks assigned to him. Always trust your family members on things like this, because they know what is best for you, and they wont recommend anyone whom they think is a bad choice.