With so many insurance companies in the marketplace this can be a difficult decision. There are some factors to consider when your firm is looking into getting a policy:
Financial Rating: There are a few different companies that do provide the financial rating and stability of insurance company, AM Best and Standard and Poor’s. It is very important for the company you’re placing policy with still be there when/if you do have a claim, therefore the financial stability of an insurance company is vital.
Claims handling: The reason your firm gets insurance is in the event of a claim the insurance company to be there to take care of the claim but also handle it in the best way possible. How are the claims handled at the company you are looking at? Ask other design firms if they have had experience with the specific company.
Additional benefits: Does the insurance company offer additional services that are important for your firm? Risk management webinars, contract reviews, pre-claims assistance and newsletters may be offered by different insurance companies. Some of these additional benefits can be helpful in your day to day business and can also help in preventing claims.
Longevity: Has my firm been with the insurance company for several years? This can be important for a few reasons. The company may offer additional credits for keeping your policy with them for longer periods of time. Also, if you have had claims or have a current ongoing claim it may be essential to keep your policy with that carrier for the time being.
Policy: Is the policy the best policy available for the premium? Just because the premium looks good doesn’t mean it’s the best policy for your firm. The insurance company may be excluding certain project types or not providing full prior acts coverage for your retroactive date. Review the policy and verify that it does make sense for your firm.
There are many factors to consider when getting your Professional Liability policy. Be sure to ask the questions of your firm, other firms and your insurance agent. Please call or email your PUI Agent with questions.