If your company provides professional services or advice to clients or other firms, you should consider having professional indemnity insurance to protect your business from liabilities.
When it comes to reducing costs, the premiums charges are often hindering the block; insurance premiums are considered as the largest costs in business. If an engineer commits error in building of project and the mistake is identified after the completion of work, then customer lose money for materials with added cost on rebuilding. Engineer would help responsible for this act; professions or companies that need PII include engineers, business consultants, IT consultants, financial advisors, architects, journalists, and accountants.
You can renew your PII through online proposal form too, as it is one of the efficient and secure methods to renew your PII. Many companies are finding it safe and practical to renew PII via online. As per the latest update, the figures are improved slightly to 41% for 2012 and 39% for 2011, and 36% for 2010 renewals.
In order to lower the premiums, you can take suggestion from broker or insurance agent about the relevance of PII that protects your firm lawful actions due to professional negligence. Sometimes the premium costs would be as much as public liability rates. Finding a way to cut down the charges is very tough, though not impossible. You do not have to cancel the insurance to reduce the cutting costs, but you need to think of possible ways to save on premiums.
Factors that Effects Premium Rates
There are many factors that affect your premium, which depend on your business or services that you’re providing. Few main aspects include type of clients, experience, and services provided. Several of quote request forms and applications, which need much more information from users or business owners, who have been in industry for 3 years or less. If you’ve less experience or just the startup, then there is more risk (premiums) associated with it. If you’re the financial advisor for clients that deal with high volume of transactions, then you may have to pay additional charges. If you build up mission-significant software, then your premium will be higher than auxiliary service providers.
Few Cutting Cost Strategies
You can minimize the premium charges in many ways, if you purchase only that you require. Some insurance comprise coverage for general liability, property, virus liability, etc, while some quote individually. Ensure that you understand what is covered and what is quoted separately. The general liability covers you from claim against property damage and bodily injury. If you build software or apps, then can opt for virus liability that safeguard your business if a customer faces damage caused by bugs or malware through your product. If you’ve physical office, then you can buy property coverage that protects your business property and equipment in the course of damage, theft, or loss. You can buy personal liability insurance and automobile coverage for suits alleging property damage or bodily injury in the event of your business activities.
Choose the right policy that better suit your business, so that you could spend that additional amount on joining associations and networking opportunities.