Professional liability insurance protect doctors, dentists, and other professionals from negligence claims. You likely know a bit about this type of coverage if you are in a high-risk profession. When was the last time you increased it? Or, if your claims fall, should you reduce it? Every policy is a bit different.
Your policy should fit your specific risks and the number of claims you face on a routine basis. It is always good to sit down with your agent to discuss your current risks and needs.
What Does the Average Policy Offer?
A basic professional liability insurance policy will carry around $1,000,000 per occurrence and $3,000,000 total. Those in higher risk professions often have $1,000,000 per occurrence and $5,000,000 aggregate. This is a starting point.
Though the numbers seem high, it is important to recognize that this may not be enough in some situations. It is very important for you to discuss your risks with your insurance agent. If you do not, you could face a lack of coverage over time. This does not have to happen.
You can and should verify the amount and type of coverage you personally have right now. Your business insurance agent can quickly answer this question for you.
Do You Need More Coverage?
A judgment against you is the biggest risk. Consider your profession. Then, discuss with your agents what your risks are.
- What types of risks exist in your industry?
- What types of claims do people file against professionals in your industry?
- Have you had other claims in the past?
- What is the average amount of such claims?
- Are there any factors that increase your risk of claims going forward?
The key here is to know how much an average claim in your region, in your profession is. This is not simple to learn. However, most often, professional liability insurance claims are high. They include any losses another person experienced. They also include pain and suffering claims. These can drive up the cost of your insurance very fast.
Know what your limits are right now. And, monitor them. Do you see significant claims against your policy through the year? If so, it may be time to push this level of coverage higher. Your agent can increase your coverage. You do not have to wait until your policy expires to do so. Rather, act as soon as you believe you are lacking protection.
Also Read: Update Professional Liability Insurance to Match Current Risks