To protect a business from lawsuits claiming negligence or adverse outcome, business owners may consider purchasing professional liability insurance in Indiana. Also known as errors and omissions insurance, it can protect a business from claims when offering professional services or giving advice to clients.
Several factors may be taken into consideration when determining the cost for an insurance policy.
- Coverage Limits. Per occurrence and lifetime aggregate coverage limits impact cost. A business may also have contractual obligations to carry minimum coverage amounts.
- Number of employees. More employees covered by the policy can increase the cost.
- Employment status. Coverage for part-time business owners may be less than those working full-time in the profession.
- Industry. The potential cost of errors may impact the cost. Mistakes made by engineers or architects, for example, may cause a building to collapse, while mistakes made by marketing firms may do minimal financial damage.
- Risk types. Businesses with more exposure to data security breaches, property damage or workplace accidents may have a higher insurance rate.
- Historical record. The number of insurance claims filed in the past may be representative of the current risk level and therefore impact cost.
Finding the Right Policy
When purchasing professional liability insurance in Indiana, the policy should be tailored to the business and its specific needs. Take the time to educate the insurance agent fully about the nature of the business and its inherent risk levels.