Make sure you fully understand your Errors and Omissions Insurance policy .
What steps can I take to lower my risk? In some cases, depending on the type of business or professional that is being insured, steps can be taken to lower the risk of an Errors and Omissions claim and ultimately the cost of the policy. For example, having a good contract in place with clients and consistently using quality control procedures can mitigate the risk. An insurance agent or risk specialist may provide specific suggestions of how your business can lower the chances of being sued. Whether or not the agent can provide these kinds of suggestions can also give you, the insurance purchaser, a better sense of how familiar the agent is with your business and its insurance profile and needs.
How much experience do you have writing these types of policies? Ideally a business owner or professional wants to work with an insurance agent who has a lot of experience working with Errors and Omissions Insurance policies. Such an agent will know all the major carriers that provide this insurance coverage and the differences among their policies, as well as details of specific coverage needs that may apply to certain businesses and professions. If the insurance buyer is in a field with unique needs, he or she may want to work with an agent who specializes in selling insurance to people in that particular line of work.
How is a claim filed? Depending on the policy and the carrier, the methods for filing a claim may vary. The insured may be instructed to call his or her agent; there may be a customer service number provided by the insurer; or there may be forms to fill out and submit. It is important for the insured party to know the exact details of what he or she needs to do in case of a claim so that valuable time is not wasted when there is an insurance situation that needs to be addressed. In a worst case scenario the failure to file a claim possibly can delay important insurance payments, so having this information in advance is key.
Are there any discounts available? Some insurance carriers provide discounts for customers on various kinds of policies, based on their loss history or whether or not the insured has other policies with that carrier. Other discounts can be available for members of specific professional organizations or groups. It is always worthwhile for an insurance consumer to ask about potential discounts whether he is buying insurance for personal or business needs, because in some cases the savings could be quite substantial.
What is the customer complaint rate? If possible, the insured should try to get a sense of how satisfied other customers have been with the Errors and Omissions policy he is considering purchasing for his business or professional needs. One way to determine if the policy is a good option is through the customer complaint rate. If a lot of customers have complained about the policy or the carrier, obviously, that makes the insurance less attractive.
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