In life, there are really no guarantees – other than that at some point, things could potentially go very wrong indeed. That’s what various types of insurance are intended for – to provide financial protection when circumstances are direst. Just as auto insurance shields drivers from claims filed against them when accidents occur, professional liability insurance safeguards individuals from claims of negligence which their clients may file against them. If you are a scuba diving professional, insurance can also guard against liability stemming from personal accusations and claims that a product or service was faulty in some way, among other things.
There are two main types of professional liability insurance for scuba diving professionals:
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Claims made professional liability insurance – This type of insurance coverage is limited to the time the insurance policy is active. If allowed to expire, the coverage ceases to shield you from claims. If an incident happened during the time you were covered and you are sued within sixty days of insurance expiration, you are generally covered since the incident occurred during the time your coverage was active.
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Occurrence Professional Liability Insurance – This type of insurance coverage extends beyond the expiration date with no limit to coverage after it is no longer active. In other words, if you are sued for an incident that occurred during the time you were covered, you will be protected, no matter how long ago you cancelled your insurance policy or allowed it to expire.
What Professional Liability Insurance Covers
Professional liability insurance covers any claims of negligence – alleged or proven – which are filed against a professional while rendering his or her services to clients. For the purpose of this type of insurance, negligence is defined as any failure to keep up with normal or specific industry standards. The coverage this type of insurance offers varies from one provider to the next as well as from one type of insurance product to the next.
As a dive professional, it’s advisable to weigh all available insurance options before making a choice as to which suits you best. Many insurance providers specialize in covering extreme sports and activities, and though they often charge higher premiums, the coverage they offer is designed specifically to protect people who work in professions like yours.
Be sure to look for a professional liability insurance product which covers negligence even if that negligence or perceived negligence did not result in physical injury or personal damage of any kind. Some people are eager to file lawsuits against anyone they believe may be liable for claims of negligence, and they often use unfair means and practices to conduct business. An expert in personal liability insurance for scuba diving professionals will be able to provide you with the coverage required to protect yourself even in the event frivolous lawsuits are filed against you. Additionally, the best insurance available covers the costs of legal proceedings.
Professional Liability Insurance Costs
The cost of professional liability insurance may seem high to you at first; but as it provides you with extensive coverage despite the fact you are in a high risk profession, it is inadvisable to go without. The cost of your insurance policy may vary depending on the financial status of the company you are affiliated with, if any, the size of the company, and other economic factors.
In general, large corporations with numerous employees may need to carry more insurance than smaller establishments and individuals who offer professional services; however, every rate is individually calculated. The cost of carrying insurance varies from one place to the next, and carriers rarely charge identical rates.
Most carriers offer lists of professions covered under the professional liability insurance policies that they offer. To save time, be sure your specific occupation – divemaster or scuba diving instructor, for example – is listed before you begin working on finding the rate that appeals to you most.
Retroactive Dates: The Basics
As you are shopping for professional liability insurance coverage, you’ll notice that “retroactive dates” are specified. A retroactive date is basically the date the insurance policy begins covering your professional activities. Almost all policies carry a retroactive date that is exactly the same as the date the policy is purchased.
Denial of Claim
In some cases, an insurance provider may deny coverage when a claim is filed. Though there can be certain exceptions which you should be sure to investigate, there are specific circumstances that almost always result in denial of claim.
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A claim is filed on an incident that occurred prior to the retroactive date – Any claims or disputes filed on incidents which occurred before the insurance policy became active may not be sanctioned.
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Prior knowledge – If you had knowledge of an incident or the potential for a lawsuit prior to purchasing your insurance, a claim on that incident may not be accepted.
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Time frame – Insurance providers generally stipulate time frames for claims to be presented. Any claim falling outside the specified time frame is generally not accepted.
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Non-professional claims – Professional liability insurance covers professional activities only. You may not file claims for suits stemming from personal services provided, nor for suits stemming from non-professional activities on your part.
Scuba Diving and Professional Liability Insurance
Now that you know a bit more about how professional liability insurance for people working in the scuba diving industry works, keep in mind that you’ll need to budget more money for this type of insurance than for most other general types of insurance. The primary reason for this is that in most dive professions, the level of risk is quite a bit higher than for most other activities. If you work as a freelancer, you’ll be responsible for buying your own coverage; if you work for a company, your employer may cover all or part of the costs associated.
One of the best ways to reduce the cost of carrying professional liability insurance is to increase the number of professional certifications you hold. The more qualifications you possess, the lower risk insurance companies will feel they carry by insuring you. In addition, stay safe and safeguard your clients. As with other types of insurance, premiums can increase after claims have been filed. By shopping carefully, getting an adequate amount of coverage, and engaging in dialogue with potential coverage providers, you’ll find that getting the insurance you need is fairly simple – and you’ll breathe easier knowing you are protected.