10 Things to Avoid When Looking for Liability Insurance Online
Everyone in the healthcare space has had a rough couple of years. From staffing challenges to mental health issues and just plain burnout, our healthcare heroes have had enough pressure and stress to last a lifetime. Business owners and consultants haven’t had it much better with constant uncertainty, loss of profits and looming inflation. More than ever medical professionals and business owners need to ensure they are protected from the unexpected with proper liability insurance. Buying insurance online is easier than ever, but for many it can be tricky. Here are ten mistakes to avoid when shopping for liability insurance online.
10 Things to Avoid When Looking for Liability Insurance Online
1. Defaulting to the Lowest or Highest Possible Deductible
The deductible is the fee you will pay when the moment comes that you need to use your insurance. When selecting your insurance policy, most companies provide a few options with varying limits and deductibles. Low deductible policies typically have higher cost premiums while higher deductible policies have a lower premium. There’s no hard and fast rule on whether it’s better to choose the highest or the lower deductible available. What’s important is selecting a policy with a deductible that you can reasonably afford to pay at any time.
2. Choosing the Cheapest Policy
Along with options for deductibles, you likely have flexibility and options with limits and additional coverages that may benefit you. Pay attention to the per claim and aggregate limits provided for each policy option. The cheapest policy may not have all the coverage you need, and paying just a little bit more for certain additional coverage could make your break your business if certain claims are filed against you. Compare all options before choosing and understand common claims filed against your profession and how much they cost.
3. Not Asking Questions
It’s essential to understand what your policy does and doesn’t cover, so it’s worth asking for clarification before signing on the dotted line and understanding what situations are excluded. In addition, make sure to ask if there are any limitations on your coverage – for example, you might not be covered outside of the U.S., which could be a problem if you do online consulting, where your clients could be from other countries.
4. Failing to Read the Policy’s Fine Print
Read your liability policy thoroughly and make sure you understand what’s covered and how. For example, there are many different exclusions that might not be mentioned in the initial policy summary.
You don’t want to wait until you have a lawsuit on your hands to know what you’re covered for. If you’re having trouble understanding the legal jargon, ask your insurance professional to explain it carefully.
5. Buying Too Little Insurance
Your insurance needs to protect your assets, not just your income. For example, if you’re a solo practitioner or have a low salary, it might seem more affordable to buy less coverage, but buying too little can leave you exposed if you get sued. It’s also better to go with an annual policy instead of short-term policies, which may not protect you in the long run.
6. Buying Too Much Insurance
There’s no such thing as having too much insurance, but there is such a thing as buying more than you need. If your current coverage is enough and you’re paying more for extra premiums with small or no benefits, then it might be better to scale back and save your money for other business expenses.
7. Not Checking for Compliance and Red Flags
Before you buy new insurance coverage, make sure your practice complies with all regulations and laws. If there are any violations in the event of a claim, your policy may have been void all along and your claim could be rejected.
8. Leaving Out Important Details
Make sure your insurance provider knows everything about you and your practice or business, from the number of clients you see to the kind of work you do. Leaving out important details can have catastrophic consequences.
If you have more than one business or organization, make sure you list all those entities on your policy. For example, if you run a mental health clinic and also have an online therapy business, then both of those businesses need to be covered on your policy. Otherwise, if a liability claim comes up against an entity not listed on your certificate of insurance, it’s not covered!
9. Not Shopping Around
Just because you have insurance from one company doesn’t mean it’s the best policy. Prices often vary significantly between companies, so it pays to shop around and compare. The more price quotes you get, the more likely you’ll find the best one for your business’s needs that’s at an affordable rate.
10. Being Unaware of Your Insurance Provider’s Track Record
Not all insurance providers are created equal. Some of them are less than reputable and are more concerned with keeping shareholders happy than serving their customers with integrity. A quick Google search can help you learn more about your provider’s customer service and claims processing, so get in the habit of checking online reviews before applying for a policy.
The right kind of liability insurance will help ensure your practice is safe and secure, no matter what happens in your personal or professional life. At NOW Insurance we provided insurance to a range of medical and business professional that is simple, fast and affordable. Get a fast quote in under 3 minutes with our simple online application. We know we can compete on policy and price with most of the existing options. No agents required! Contact us with any questions about coverage or professions.
Learn more about professional liability for therapists or allied health professionals.
Learn more about insurance for consultants.