Budgeting effectively for professional insurance, such as Errors & Omissions insurance, can be a challenge for many people. The most effective way to determine your likely E&O insurance cost is to simply complete the necessary applications and seek quotes from different providers. Still, it can also be useful to understand the factors that help determine your premiums.
Analysis of Your Risk
An insurance provider may consider a few variables to determine how much of a risk insuring you specifically represents. Your history of claims, regardless of how they were resolved, may be taken into account. Your general industry may be considered as well. If you work in an industry that provides especially high-value services, you present more of a financial risk from an insurance provider’s perspective.
If you have actively taken measures to reduce your risk of facing claims, such as completing job-related training or upgrading to better technology, an insurance provider may view you as less of a risk. Switching over to a new insurance provider or bundling multiple professional insurance policies with the same provider can also lead to lower premium costs.
Confirm With a Quote
You can get the most precise E&O insurance cost estimate by completing an application with accurate information about your work, your qualifications, and your past record of claims. An insurance provider may even be willing to offer you advice on using risk management strategies or other techniques to qualify for more favorable premium costs. This makes at least exploring your E&O policy options well worth the time.