This article is provided as a member benefit by CAMICO, the OSCPA preferred provider of professional liability and employment practices liability insurance.
By CAMICO Loss Prevention
One of the most frequent questions asked by CAMICO policyholders is, “What should our policy limit be?” This is not an easy question to answer, which may explain why it is asked so often.
The answer to the question requires a careful consideration of a variety of factors that run the gamut from the relatively well defined, such as regulatory requirements, to the more subjective, such as the "sleep well at night" factor.
Some factors are easy to understand, as are the dangers of being under-insured and over-exposed to liability, while others are not so easy, such as the perils of being over-insured and creating a target for unwarranted litigation.
A thorough consideration of the factors involved should ultimately lead to well-informed choices that best suit your firm’s requirements. While the following presents a general discussion of the considerations, you should discuss your situation with your insurance agent or underwriter.