Crucial Guide Reveals Professional Liability Secrets for Accountants

Key Components of Professional Liability Insurance

When considering professional liability insurance, it's important to understand the key components that make up a comprehensive policy:

• Coverage Limits: These dictate the maximum amount the insurer will pay for a claim. It's crucial to assess your risk level and choose a limit that adequately protects your assets.
• Deductibles: This is the amount you must pay out-of-pocket before the insurance coverage kicks in. Selecting a deductible that balances affordability with risk exposure is key.
• Claims-Made vs. Occurrence Policies: Claims-made policies cover claims made during the policy period, while occurrence policies cover incidents that happen during the policy period, regardless of when the claim is made.