The best way for a professional to receive an affordable rate for Errors and Omissions Insurance coverage is to make sure that he or she is well-prepared and informed before buying a policy. Any insurance shopper should prepare in advance with all pertinent information before talking with an insurance agent or broker. An Errors and Omissions insurance company will probably want to know many details about the business to be insured, including annual revenues, details of any contracts that the business has with clients, documentation about training and quality control procedures, and information about employees and independent contractors.
The business owner or professional also needs to make sure he understands the product and the terms used in discussing the Errors and Omissions Insurance policy. He should make sure to ask for definitions of any terms that are not well understood.
As with any important purchase, it is vital to obtain quotes from more than one insurance company. If you are working with an insurance agent, ask him to provide multiple quotes. The premium costs for Errors and Omissions Insurance policies can vary widely from company to company. However, you must make sure you are comparing apples to apples when you get multiple quotes, and that each policy covers the same exposures for the same amounts, so that you may choose wisely.
Some insurance products have contain fees and costs, so a business owner needs to read the fine print of any quote or policy to make sure that he fully understands the cost of the policy.
Any insurance policy is only worth the money if it will pay a claim when you need it. The lowest-priced policy is not always the best choice. Referrals from other business owners and professionals can be worth their weight in gold when assessing which insurance policy to purchase. If you know other professionals who have Errors and Omissions Insurance policies – especially if they have filed claims in the past – ask about their experience with their insurance provider. How was the claims processed handled? How was the customer service?
To be assured of its financial stability, it is also wise to check the ratings of any insurance company you are considering.
Errors and Omissions Insurance Tips - Home