Insurance
A Deep Dive Into Business Owners Policy Exclusions to Avoid Surprises
January 27, 2025
| October 18, 2024
Author: KimberleeEdited by: Kimberlee and Reviewed: Kimberlee
Doing your job professionally is something that you take pride in. With that said, mistakes do happen, and getting sued for erroneous professional acts is possible. Getting the right professional liability provider is important as it ensures that you will have a team on your side should a claim arise. The carrier is the one who provides the legal team to defend you and pays any judgments or settlements. Getting the wrong carrier could lead to a mediocre claim defense and costly judgement.
When looking for the best business insurance for your LLC or small business, consider these carriers to get a fair price with excellent service and claims support.
The Hartford has been serving small business customers for more than 200 years, with more than one million small business customers.
Its professional liability policy, also known as errors and omissions (E&O), covers negligence, misrepresentation, inaccurate advice, personal injury, and copyright infringement. It also pays for the defense costs associated with a claim.
The Hartford representatives are professional and knowledgeable and can help you determine the right amount of coverage for your business.
The Hartford liability insurance has a 4.8-star average review with 882 reviews made on its platform. Users who like the product are thankful for The Hartford when a claim arises and find the process easy to navigate. Those who don’t like the product claim that they are slow to process things and are difficult to get ahold of once you have a claim.
Get a quote with The Hartford today.
Hiscox has developed their business model to accommodate the needs of truly small businesses.
A micro business is any business with five or fewer employees. Hiscox’s professional liability policies are designed to cover these businesses with a price that beats most competitors.
Quotes vary depending on the size of the company and the revenues it generates. The higher the revenues, the higher the costs. Policy coverage exists worldwide, so while you’re insured in the state you reside in, you have protection anywhere you might do business.
Hiscox gets an average 4.7-star review on Google reviews. This is with more than 2,230 reviews left. Those who like it say that the agents are professional and helpful. They appreciate the insights agents provide during the underwriting process. Those who gave negative reviews say that it was easy to get started but get ignored when trying to file a claim.
Get a quote with Hiscox today.
Travelers has an AM Best rating of A++, which is superior in the rankings. This means that Travelers has the strongest financial solvency possible, with good asset management and claims-paying ability.
It offers a specific professional liability policy for attorneys, highlighting the higher risks associated with the profession. Policies can be tailored to fit a business’s specific needs, providing the coverage necessary to have adequate protection.
Travelers does not fare well with its Better Business Bureau reviews. It garnered only a 1.05-average star review with 291 reviews. Complaints have to do with underwriting issues that led to confusion and cancelations. Those who highly rate the carrier like how claims are handled and the friendliness of claims representatives.
Get a quote from Travelers today.
Chubb Insurance traces its history to 1792, giving it centuries of experience handling a small business’s insurance needs. When it comes to professional liability insurance, Chubb knows that different industries face unique risks. It has created a specialized professional liability policy for media organizations that deals with the exposures publishers and producers face when talking about individuals and companies. Chubb has an A++ from AM Best, demonstrating the strongest financial security possible.
Cubb Trustpilot reviews are a mix of personal insurance and business insurance. It gets an average 1.4-star review out of 586 reviews. Those who like the company like the people they have worked with in the underwriting and claims process. Those who rate the company poorly have trouble with online forms crashing and not being able to process the information needed for underwriting or claims.
Get a quote from Chubb today.
Nationwide is most widely known for its personal insurance lines, such as home and auto insurance. However, they have a robust set of policies dedicated to helping business owners protect against risks. They offer a specialized policy for several industries, noting the risks associated with those industries. Their architects and engineers professional liability insurance policy deals with the unique risks associated with designing and building assets. It received an A from AM Best, which represents strong financial management, though this isn’t the highest possible rating.
Nationwide hasn’t gotten a good rating on the Better Business Bureau’s site, with only an average of 1.13 stars in 366 reviews. Those who dislike the company have problems with claims, while those who like the company appreciate the service Nationwide provides. Those who like the company appreciate the timeliness of claims processing and overall handling of the situation.
Get a quote from Nationwide today.
Getting the right policy can take some time and effort on your part. In the end, you want to make an effort and do your due diligence to ensure that you have the policy you need with a company that will back you in a claim.
Determine what your risk is and how much coverage you need from a policy. There are a lot of resources online that help you assess risk. However, the key is to protect your company’s assets and revenue in a claim. Make sure you have enough coverage to do that.
Shop around with your coverage needs. Some carriers have an appetite for a specific industry and offer better pricing for those companies. Make sure you compare like coverage with like coverage to ensure you are getting an accurate quote.
AM Best is the industry leader for rating companies on their financial stability. Look for companies with an A rating or higher. These are the companies that have demonstrated that they have the financial assets to handle catastrophic losses and are most likely to be able to pay claims.
It’s important to know what the policy does and does not cover. Ask your insurance agent for a dummy policy so that you can read through the exclusions. Understand what isn’t covered and talk to the agent about getting a policy that can fill the gap if necessary.
Whether you’re looking for the best insurance for an ecommerce company or want to protect your consulting firm from professional lawsuits, look for companies that have a history of insuring your industry satisfactorily. The companies on our list are a good start to shop around with because they have a strong reputation for protecting a wide variety of industries.
If you provide a service to the public, you will want to get a professional liability policy. One claim pays for the policy, and a claim can happen to anyone. It is definitely worth the cost for the protection you receive.
Take the time to research possible companies. Look at the AM Best rating as well as claims satisfaction for the company. You want to work with a company that is highly solvent and has a reputation for making the claims process easy.
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