life insurance

Choose the appropriate sum insured (or limit of indemnity) to the policy of professional liability insurance can be problematic. It is important that close attention to monitoring the adequacy of the sum insured selected a renewal or by adopting a new policy of professional indemnity. In the context of insurance can lead to substantial financial losses both to you personally and your company. Some questions to consider when examining the sum insured for your business:

• Does your company has grown since its last notification sum insured? If so, the possibility of increasing the limit.

• In the worst case, if something was wrong, it would be the economic loss to others?

• replacement body can charge both to defend and settle, are you involved in a sector with potential exposure to claims for personal injuries? (For example, medically, architects, engineers, personal trainers).

• What is the potential for economic loss resulting from third parties? Consider not only your customers but also third party users of your client installations.

• Do you have a large number of clients where you offer a similar service, systematic errors lead to more requests?

• do you manage money on behalf of a customer, such as the accountants to the Trust Account? Losses due to fraud and dishonesty of employees is a significant exposure to a professional in this situation.

• What is the potential costs of defense and investigation, or on behalf of a customer during the life of the loan?

• The limit of the policy, which is political integration "or" Exclusive "costs? (If the limit is inclusive of all that is available so you should consider higher limits)?

• How many respondents are likely to be part of the claim or action? More pieces of action more difficult and expensive it is to solve the requirement (for example, large construction projects).

• What is the general contract / project value of your biggest contracts? Although it can not be only a small part and only earn a small amount of payments for your acts, errors or emissions could delay the whole contract / project, which will have significant losses.

• How long did you practice? Your exposure increases with time practice, in some cases it may take years before a commitment is clear to the insured (eg a mistake in the design of buildings)?

• Have you made purchases in the last 12 months? If this was not significantly increased exposure for your business and services offered and the size of the practice?

• Have you signed the contracts, which have increased the amount of insurance?

• The legislation has changed it needs to carry a minimum limit of compensation of professional politics?

• is the professional association must at least limit the professional liability insurance policy?

It is important to note that responsibility policies are the most professional way of insurance or the provision applies when the average amount required to settle the claim exceeds the limit of the sum insured in the policy. When this occurs, the insurer is only liable for a portion of total costs and expenses. It must be the same share of total expenditure by the political border bringing the total amount required to dispose of the application. Consider these issues in depth before, during consideration of your professional indemnity limit.