subject: Saving More On The E & O Insurance That Can Save Your Company [print this page] Saving More On The E & O Insurance That Can Save Your Company
As many contractors, architectural firms and other professionals have learned, a single mistake, or even just the accusation, of one on the job can cost you your company. E & O insurance serves to minimize the financial risk of these mistakes, covering you in the case of a professional error on the part of you or a contractor who is working under your supervision. Though this is a necessary expense for business owners, it can also be a significant one, and the most confident sometimes balk at paying the high premiums to cover their experienced workers. The good news is that, much like other types of insurance, those with more experience and great reputations can pay less for their policy, giving them the protection that they need at a price they can easily afford.
Even if you have been working with the same provider for years, you may be able to save on your policy by shopping around for rates that are more competitive. Much in the same way that the cost of car or home insurance policies can vary by provider, so too can the cost of this type of coverage. If you have relationships with some of your colleagues in the industry, it may be worthwhile to open a discussion with them about what they are paying for a policy that is similar to your own.
Price breaks are also available to companies and contractors who have established themselves as reputable through years of good business practices and lawsuit free operations. Those who are just starting their own company may find that they are paying a premium for E & O insurance coverage, but they should enjoy regular price breaks as they become more established and establish their reputation as error free professionals. Those who have not been receiving these bonuses regularly should contact their policyholder to discuss the possibility of rewarding them for their diligence.
Some choose to save by reducing their coverage levels, but this is generally not a great idea. Even if you have never been sued in the past, a single lawsuit, including any potential settlement and the costs of defending yourself against the claims, can quickly become an incredibly expensive endeavor. Though reducing your coverage limit will allow you to pay lower premiums each month, it will also leave you open to potentially devastating litigation. Do not be tempted to reduce this bill by slashing your coverage, as it could leave you open to far more dire financial circumstances in the future.
If you are a professional who holds their own work, and the work of those around you, to the highest standards, you may be eligible for savings on your E & O insurance. Contacting your current provider, or shopping around for rates from competitors, is the best way to cut the cost of your premium without reducing your amount of coverage.
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