Lower premium – Tips and ‘How To’

The bottom line for your firm is very important.  Here are some ideas of how to help lower your Professional Liability premium.

Deductible – Increase the deductible amount if possible.  By increasing your deductible this will decrease your premium.  If your firm is a smaller firm the insurance company may not be able to offer a higher deductible, be sure to ask.  Also, another option to look at is the deductible option; the straight deductible option does provide some premium savings over the first dollar deductible option.

Risk management – Insurance companies may offer a credit if you participate in their risk management programs available.   Be sure to check with your insurance company to find out if this is available.  Additionally, some insurance companies will offer a premium credit for overall risk management practices that your firm has in place.

Project types – The project types that your firm provides service to can have an effect on your premium.  For example, condos projects will increase your premium, while commercial buildings or office buildings are a better project types for most insurance companies.

Studies, reports, opinions and master plans – Be sure to report to the insurance companies the studies, reports, opinions and master plans that you completed in the past fiscal year.  These types of services are rated lower than all other billings.  Additionally, if you have abandoned projects, non-structural interior design and landscape architecture design these are rated lower.

Direct reimbursables – Items such as travel per diem, printing and non professional services or expenses that your firm is reimbursed for from your client should not be included in the gross billings of your firm.

These are a few suggestions on ways to save on your Professional Liability premium.  Please discuss these options with your Professional Underwriter agent.