How to get liability insurance

how to get liability insurance

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Instructions

Determine if you want your insurance coverage to end when your policy expires. If you do, then purchase Claims Made Professional Liability Insurance. A Claims Made policy, or Reported Coverage policy, protects you only within the policy dates purchased up to claims reported 60 days after the policy expires.

Consider buying Occurrence Professional Liability Insurance if you are a professional whose clients have a longer statute of limitations for which to report a claim. Occurrence Professional Liability Insurance protects you after the policy expires, provided the incident occurred during the active policy period. For example, this policy protects a physician for malpractice years after the policy expires, if the event happened while the policy was in force.

Begin shopping for a trusted insurance company. Research the insurance company's financial pulse before you buy insurance. Find out if the insurance company has complaints and if a state guaranty fund backs their policies.

Fill out the insurance application accurately. Ask your agent questions such as the policy's exclusions and deductibles, what activities are covered and what circumstances would terminate the policy. Some insurance companies do not cover "everything," so take your time to understand the details of your policy. Obtain a copy of the agent's business card. Pay for your policy by check or credit card-never pay with cash. You should receive your policy within a few weeks by mail.

Ensure that your employees carry their own Professional Liability Insurance. Many insurance companies will cancel your Professional Liability Insurance if other licensed professionals work for you, but do not carry their own insurance coverage.

Be aware of your liability limits before you purchase your policy. Common policy limits for Professional Liability Insurance range from $500,000 to $1.5 million per claim. Also, consider if you want to include coverage for any legal defense costs with your policy before you make your purchase.

Source: ehow.com

Category: Insurance

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