Here are some pointers to think about prior to not obtaining or getting rid of your professional liability insurance in Colorado.
1. If you drop coverage now, it will be as though it never existed - All of the professional liability policies on the market are claims-made policies, meaning that coverage must be active at the time of the claim to be covered. So carefully consider the projects you've recently worked on. Even if your policy was active while working on a project, if a claim is brought after you've let your coverage lapse, it won't be covered.
2. Insurance protects your assets - The average cost of a claim against a contractor firm is around $120,000 when payment is made to the plaintiff. And, remember, even frivolous claims cost you time and money.
3. Pay less for continuing education credits - In fact, you may be able to pay nothing with certain carriers.
4. Who will be with you when a claim is brought against your firm? When a lawsuit is brought against you, some carriers will provide you with a defense attorney who will fight for you and your reputation.
5. You may be contractually required to have professional liability coverage - Many projects require contractors and construction managers to have professional liability insurance.
If you have other concerns or questions about your project, contact Aspen Insurance and we can assist in evaluating your risks.