So you applied for Professional Liability Insurance quotes for your small business? Perfect – you're on the right track. But now that you have those quotes in your hands (or on your screen), you might be wondering what in the world it all means.
Your quotes may seem daunting, but deciphering all that information is simpler than you may think. Let’s go over some of the key parts in your quotes, including…
- The mystifying numbers.
- The unfamiliar company names.
- The baffling coverage limits.
- The miscellaneous insurance bric-a-brac.
When we’re finished, you should have a better understanding of your Professional Liability quotes and your coverage options.
Step #1: Understand the Numbers Game
The numbers sprinkled throughout your quotes aren’t part of an elaborate insurance roulette. There is a method to the madness. Here are some numbers that you should pay attention to:
- Total annual premium. This is probably the biggest number listed in your quote – not in amount but in size. It's the estimated price you’ll pay in a year for your coverage.
- Quote number. This serial number listed under the quoted policy type acts as a reference number. It will come in handy when you discuss your policy options with your insurance agent.
- Liability coverage. These are the amounts of your policy coverage limits. (More on this in step 3.
Step #2: Know What's in a Name
You requested Professional Liability Insurance quotes from Insureon, so who are these other people? Insureon is an insurance agency, and the other companies listed are insurance providers. What’s the difference?
Step #3: Untangle the Liability Coverage Conundrum
Earlier, we mentioned you'd see numbers under your quote's liability coverage section. Here’s the skinny on what your Professional Liability coverage and limits may look like:
- $1,000,000: Per Occurrence. This is the amount your policy can pay for any single claim, such as a lawsuit over an error your business made.
- $1,000,000: Annual Aggregate. This is the total your policy can pay for all the claims filed during one policy year.
- $2,500: Deductible. This is the amount you must pay toward a claim in order to receive your Professional Liability benefits.
Step #4: Crack the Miscellaneous Insurance Jargon
There’s some tricky insurance lingo in your Quote, but here's the gist of what some of these terms mean:
- AM Best Rating of A++ (Superior). This is a rating of the insurance company offering the policy quote. The rating indicates the company’s financial solvency. In this example, the insurance carrier is rated as “Superior” – a high rating.
- Liability Coverage: Professional Negligence. The items listed under this term detail what your policy will do for your business (e.g., fulfill insurance requirements in a client contract and cover negligent acts or errors and omissions).
- Claims-Made Basis. This means your policy can only cover a claim if both of the following conditions are met:
- Your policy was active when the alleged incident occurred.
- Your policy is active when you file the claim.
- Payment. The final part of your quote deals with payment options. Typically, you have the choice to pay your entire premium upfront or in smaller installments throughout the year.
Need More Help with Your Professional Liability Insurance Quotes?
If you're still befuddled by your Professional Liability Insurance quotes, contact a knowledgeable Insureon agent (800-688-1984) to walk you through them. For a more in-depth breakdown, read our post “Decoding Your Small Business Insurance Quotes.”