Updated on March 14th, 2019
There are numerous benefits that you can enjoy by buying professional indemnity insurance. These errors or omission insurance, also known as the title insurance offers up financial assistance in case lawsuits are filed against professionals or a company by holding them responsible for negligence and error.
To get your indemnity insurance today, visit www.sunnysidetitle.com However, to ensure that you make the right choice while making a purchase all you need to do is read on. Here are some of the common mistakes to avoid while purchasing professional indemnity insurance.
1. Understand The Difference Between The Various Available Policies
There are usually two different kinds of coverage that you can go for including the claims made and occurrence. In the claims made policy you are covered only when the policy is active, and the alleged claim is put on the table within this period.
Occurrence policies, on the other hand, offer protection against negligence during title search as well as in case of a claim when the policy has ceased to exist.
2. Always Buy Sufficient Insurance Coverage
Cutting corners with respect to cost by buying insufficient coverage is a strict no-no in case of indemnity insurances. The few bucks you save today can prove to be costly in the long run.
The purpose of the insurance is to help you cover the full cost in case of a lawsuit, and it is counter-intuitive to not go for complete financial protection. Do not curtail the cover to save on the premiums.
3. Don’t Choose A Policy Based On The Premiums
As it was stated earlier, it is no good to cut costs when it is the professional indemnity insurance. So don’t choose a policy based on the low premiums that you need to make.
Various factors decide the premium for policy, and it may happen that your service provider has cut on the coverage to offer up the low premium rates. Always read the offer document carefully before making a choice.
4. Consider The Claim Settlement Ratio For The Insurer
You need to be aware of the claim settlement ratio for the insurer before purchasing the policy. The claim settlement ratio is the hallmark of a successful indemnity insurance service provider.
The higher the claim settlement ratio for the company the higher are your chances of having your claim settled. You can achieve the perfect peace of mind if you go for a service provider with a high claim settlement percentage.
5. Do Not Choose The Wrong Deductible Limit
The deductible is the amount you need to pay before the insurer settles the remaining. In case you have a higher deductible it will deter you from approaching the insurer for every claim. The low premium rates often reward these. You need to be prudent while deciding on the maximum deductible limit.
It is indeed a tricky world, and it is rightly so in case of corporate insurance. It is, therefore, a great idea to have a complete understanding and read your offer document thoroughly before investing.