Error Omission insurance rates are based on several factors. Some are industry standards, and some specific to those who take out the policies.
The Risk Of Loss
The expected likelihood of a loss occurring is the biggest driver behind insurance rates. The potential amount of the loss is another factor which amounts premiums. Companies which accept lower pay out limits will have lower premiums to pay.
The type of occupations and industry a policy holder is involved in can affect how much they pay in rates. Medical professionals, such as obstetricians will pay more than those in low risk occupations, as they have a high risk of being sued.
Other factors which may affect rates but are specific to the holder of the policy include:
– Location of a business
– Turnover and profits
– Number of those in a firm potentially at risk of being sued
– Prior history of claims
Competition is fierce within the insurance world, which can lead to some good deals being offered as companies try to increase their business in certain industries or geographical locations.
Use the suggestions below to find the best error omission insurance rates:
– Be honest about any previous claims history, and provide full documentation to show the steps taken to prevent previous incidents reoccurring.
– Make information such as staff training records and health and safety information available to your insurers.
To keep premiums as low as possible ensure you remain up to date with staff training, especially around industry specific qualifications and regulations.