Getting legal liability insurance is a necessity for many professional companies today. Obviously many customers are looking for a way to get rich, and they do so by filing lawsuits or the tiniest of mishaps. Even coffee shops need this coverage, and therefore it is all the more important for a professional firm. The tiniest of mistakes can have major ramifications. For this reason, you want to be sure you are covered no matter what.
In addition, it is possible for an employee to sue as well. Whether it is a customer or employee, it is imperative that you have good coverage. There are a number of varieties of liability coverage out there. They are general, bodily injury, umbrella, cargo, or garage. The variety you get obviously varies based on the company.
However, general liability is the most popular for professionals, and this covers personal injury, property damage, and also false advertising lawsuits. Therefore, it has all the major things most businesses need. One of the reasons that many companies do not get it is that the monthly premiums can be very high. However, when you take a few simple steps you can definitely save money while still getting good coverage. Here are two tips for reducing your premium:
#1) Get a lower coverage limit
This basically means you are not covered for as much in the event of a claim. Therefore, the legal liability insurance company will cover you up to the max coverage point, but you are responsible for the rest. The lower the max coverage, the lower your premiums will be.
While you definitely need sufficient coverage, you often do not need as much as the company will try to convince you to get. Therefore, you need to really think long and hard over how much you potentially could get sued for in the event of negligence. You might even want to ask others in your line of business and see what the maximum they have been sued for, as this can give you a good idea of what your risk is.
#2) Quality control
Nothing beats having a good track record in terms of not having claims filed against you. When an insurance company evaluates you, one of the main things they look at how many lawsuits have been filed against you in the past, and most importantly, how many decisions have been reached against you. The higher these numbers are, the more money you will pay. Even if you have not had many decisions against you, merely having a high number of lawsuits will raise your premiums. This is because the insurance company is responsible for all legal fees.
Therefore, as you can tell, legal liability insurance is very important for many professional businesses to some extent. Just make sure you first think about how much you realistically need, and then find a policy that meets those requirements. Then, get a number of quotes for that coverage, and this will help you find the best price.