Professionals TalkingYou are a busy and focused professional who doesn't have the time or inclination to research professional liability insurance. After all, you've had your consulting business for years and have never been sued by a client. The other thing that holds you back is the cost.

You probably understand the nature of risk. The longer you are exposed to a risk, the more likely the event will happen. Before your time (or luck) runs out, you should get insured. Don't assume that the premiums will be excessive. You can influence your rates by the actions you take. Here are three ways to avoid high premiums.

Assume More Risk

This means taking a higher deductible. The deductible is the amount you pay before your insurance policy takes over. A higher deductible means you're assuming more of the financial risk in the event of litigation from a client. The logic is similar to the other insurance policies you have. Whatever the deductible you decide, make sure you can pay it without hardship. An excessive deductible defeats the purpose of getting insurance.

Pay for What You Need and No More

The coverage you need depends on your situation and industry. If you haven't thought much about client lawsuits, you may not have a clear idea of what your needs are. Talk to an independent insurance agent with experience in your field. Use their expertise to make an informed decision.

Demonstrate That You’re a Good Insurance Risk

Again, this is similar to other types of insurance, such as car insurance where your driving record, age and other criteria affect your rates. Since you've made it this far without getting sued, let your insurer know about your good practice record. Professionals with a long history of lawsuits with their clients pay a higher premium because they're a high risk for an insurance company to take on.

If you've taken extensive training courses, have multiple degrees related to your field or have taken courses on risk-management strategies for your industry, inform your insurer of this. If your employees have done the same, inform your insurer. Always adhere to the best practices and government regulations that apply to your industry. Show evidence of this to your insurance company.

Professional liability insurance covers damages from a client who sues you because of your errors, omissions, negligence or slander. This includes damages because of inadequate work that fell short of what was promised. Your legal defense costs can be covered as well. The policy also covers litigation from current and past clients, as well as damages caused by your employees and subcontractors.

Get a quote today. Call RV Johnson Insurance at (772) 287-3366 for more information on West Palm Beach business insurance.

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