If you are a professional considering buying insurance coverage, then familiarizing yourself with the various insurance terms that populate the world is a must. One such term that you will often see being used by companies and insurance brokers is “deductible”.
In the world of insurance policy—and professional liability insurance coverage—a deductible is the amount of money that an insured is required to pay when they make a claim. How much money the insured choses to pay tends to vary from person to person. Generally speaking, the higher the deductible, the lower the monthly premiums will be, and vice versa. For many people, choosing a higher deductible has the potential to reduce how much their monthly premiums cost by up to 10%. As such, increasing the deductible is a good tactic to save money on monthly premiums… assuming that nothing goes wrong for a while, that is.
When people are considering purchasing a professional liability insurance policy, choosing a deductible amount that is both affordable and useful is of the utmost importance. The truth is that many people don’t know how to do this. This is why they should always rely on the help of their Calgary insurance brokers to come up with the amount that will work best for them.
With that being said, what should you, as a professional, take into consideration when choosing your deductible? The first thing that they will have to consider is whether or not your profession allows you to cushion a considerable portion of your defense costs in the event of a claim. If you are well established in your profession and decide that you are able to pay a higher deductible, then by all means to do. Putting some money aside to be used as part of your deductible is always a good idea.
On the other hand, if you are only beginning to practice your profession, then we don’t recommend lowering your deductible until you have gained a sufficient amount of experience under your belt. After all, you are more likely to be sued than someone with decades of experience in your prospective field.
For more information, we encourage you to give your Edmonton insurance brokers a call.