Through Victor’s Architects & Engineers professional liability program, eligible firms with annual billings up to $500,000 can choose a professional liability policy with a $0 deductible.
What is a $0 deductible and how can it benefit policyholders?
1143201027
$0 deductible option explained
Insurance contracts do not always transfer all the risk to an insurer; insureds retain some of the risk, in part, by way of a deductible. A deductible is defined as the amount of money an insured is responsible to pay directly towards an insured loss before the insurance carrier pays a settlement on the insured’s behalf.
However, through Victor's Architects and Engineers professional liability program, eligible firms with annual billings up to $500,000 can purchase a professional liability policy with a $0 deductible. This means that if a claim were to occur, the insured would not be paying a deductible on a settlement or for claims expenses.
Key benefits of a $0 deductible include:
- Enhanced cash flow management: With no deductible, insureds can maintain better cash flow since they won't need to set aside funds for potential out-of-pocket expenses related to claims. This allows for more flexibility in financial planning and investment.
- Reduced financial burden: A zero deductible minimizes the financial burden on an insured in the event of a claim. This can be particularly beneficial for small businesses or startups that may not have the financial reserves to cover unexpected expenses.
See this policy feature in action
A design professional decides to purchase a professional liability policy with a zero deductible. A claim is brought against the design professional, alleging negligence in his work, which resulted in significant repair costs and/or delays.
Upon receiving the claim notification, the design professional contacts his insurance provider to report the incident. The insurance company assigns a claims adjuster to investigate the situation.
The insurance company agrees to cover the costs associated with the claim, including legal fees and the expenses for the necessary repairs. The insurer also provides legal representation to defend him against the claim, further alleviating the design professional’s concerns.
Since the insured opted for a zero deductible professional liability policy, he will not have to pay any amount out-of-pocket for the claim.
To learn more, email design.us@victorinsurance.com or connect with your business development contact.
