It is not always possible for you to predict your actions based on the outcomes you are expecting. Insurance many will tell you involves a planned process and actually is something you invest in advance and then reap its benefit when time comes or when it is the right time to access and get your claims.
However, we will like to disagree here to agree that insurance needs to be planned in advance, but not always situations are so ideal. In fact, most of the time as a professional, you may have to tackle multiple needs involving your business or client needs. In the process you may not have the right access to funds to fuel the contingencies and insurance can take a backseat. How will you in that case get a coverage just when you need?
Professional liability insurance can be bought to serve short-term needs too.
What does this mean?
Let’s get into the details a little closely. Short-term liability insurance is small business insurance coverage, which you can access just when you need it. You need insurance coverage for your business, but you sometimes don’t need it for a whole year. Perhaps you need coverage to bid on a project, but no longer need it after the project ends. Maybe you have a short-term project requiring more coverage than your existing policy provides, or you need to be insured against a specific risk.
Being a professional or a business owner, your need for business insurance, especially the liability coverage can be many. Further, in your arena of work it is not easy to predict the occurrence of mishaps. So, bagging the right coverage with a general liability insurance policy is not enough. This is because, these policies do not offer protection against claims arising out of business or professional practices such as negligence, malpractice, or misrepresentation. That is why you need a professional liability insurance.
However, whether you are buying a liability coverage for the short-term or are investing in one that is long-term, you need to be aware of the exclusions of the policy first. This actually helps you in predicting and preparing you for the expectations you can make towards the policy and what you have to totally rule out.
What are the major and minor exclusions from a
professional liability claim?
When making a claim towards your insurance policy, understand that you cannot claim any money for a mishap arising from intentional conduct, for general liability claims, compensation for employees injured at the workplace or damages arising owing to employment disputes and false advertising. So to say, occurrences that are predictable and look staged are never considered for coverage under your insurance claim. This is to say that when someone, such as your client or a person to whom you have rendered a service raises a legal issue against it then you are eligible to claim for that liability through your insurance. However, simple disputes or employee problems and certain such occurrences listed below, are not covered under the principles of professional liability insurance.
Why do you need a short term policy?
Every business is unique and so is the nature of work of every professional. Considering this factor, the short-term liability coverage has been brought to front. If you handle a seasonal business or mostly depends on limited duration of business interaction, then this policy is right for you and it keeps you protected against claims by others of bodily injury and property damage. Further, as a professional if your main source of income is projects, which comes attached with deadlines. Then for your projects that are highly client facing, which leaves you vulnerable to claims or negligence you need a short-term coverage. This way, you can get access to the coverage only during the span of the project and pay for the cover only for that project.
How does the short-term policy work?
The professional liability coverage when purchased for a short term, it turns into an insurance cover that is valid for a certain time period, whether that is hours, days, weeks or months. Monthly renewable coverage on the other hand is a short-term liability policy you purchase for a month, with automatic renewals each subsequent month until you cancel.
The professional liability insurance is very unique owing to the nature of the insurance and its terms. From choosing the policy which ropes in all benefits for a professional to understanding the pros and cons of choosing it in short-term or for a particular reason or opting for it to keep your business ready, always you need to have a good agent by your side. Akshar, being the best insurance agent in Mumbai is the problem-solver you need to help you with your policy needs. The team is known for their 100% claim settlement ratio and predicts the right policy for you depending on the demands you have.
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