Standards As noted earlier, the names for error insurance vary by provider, and so do the terms covered. Error insurance varies as much as the businesses it covers. Providers start with boilerplate template agreements that are specific to business types. Then, based on discussions with customers and their needs, the boilerplate language gets tailored to address specific interests. By the time the agreement is drawn up in final form, very little could be boilerplate depending how specific the error insurance needs to be for the customer. Additionally, costs tend to increase with specificity. Boilerplate terms have already been costed out by an insurer's actuaries. Depending on what the liability cap is, the insurer can peg a premium price on an error insurance policy using template language. However, if specific nuances get introduced, it has to go back to the actuaries and underwriters for customized costing. This typically increases the price of the coverage with the more detail that is unknown or not typical of the insured cost pool. Finally, almost all insurance providers include their own, specific language to protect their own interests and not let the costs covered get out of hand. Much of the protective language is geared to make it as hard as possible to reach the total coverage limit of the policy. This tends to work against a suing party but it also can handicap a policyholder. Typical examples are language that restrict the type of claims the coverage plan will address. How Much Does a Policy Cost? As noted earlier, the names for error insurance vary by provider, and so do the terms covered. Error insurance varies as much as the businesses it covers. Providers start with boilerplate template agreements that are specific to business types. Then, based on discussions with customers and their needs, the boilerplate language gets tailored to address specific interests. By the time the agreement is drawn up in final form, very little could be boilerplate depending how specific the error insurance needs to be for the customer. The cost depends on what you want insured as a business. A number of influences can raise or lower a policy price in the insurance world. These can include: • What type of professional business is involved • Which state the business is located in • How much gross profit the business makes • How many individual in the business are providing the service or product at risk • How many claims have been realized before historically • The policy type desired Cost also depends very much on the terms, and too cheap of a policy could leave a business in the cold. Business customers need to read error insurance terms carefully to make sure the desired protections are in place. It makes no sense to have a policy and pay for it monthly if the fundamental financial protections from lawsuits aren't included. Again, the core costs that should always be involved from a business perspective are defense attorney's fees, court costs, and damages coverage. That said, competition can be beneficial. Assuming you have two insurance providers who offer the same satisfactory protection, there's no need to pay more than necessary if one is cheaper. Also look for providers who give discounts for annual loyalty. Your consistent business year to year should be worth a price reduction after a while. Standards and Pricing