When a policy for professional liability insurance in Austin, TX, is being drawn up, the agent will look at a variety of factors to help put together the cost of the policy. While the amount and type of coverage do play into the final rate, they are not the only factors. In fact, there are three main factors that are considered to tailor a policy cost for each professional.
A company will always look at your claim history. If you make a lot of claims, it will raise your risk because it makes you more likely to submit more claims in the future. Any claim made costs your insurance company money.
The company wants to see that you have procedures in place to protect you. They want you to be proactive and to be doing everything you can to make sure that you don’t have any claims filed against you.
Your Practice Area
The professional area you are in will also affect costs. This is because some professionals are more likely to have cases brought against them than others.
While you can’t control many of the factors that will be used to determine the cost of your professional liability insurance in Austin, TX, being aware of them can help anyway. It is always nice to be able to understand why you are being given a specific price.