What E&O Insurance price and coverage limits do you have? Vs. Annual billings?
Coverage $2,000,000/$4,000,000
Deductible $50,000
Premium $80,000
Billings $7,000,000
> What E&O Insurance price and coverage limits do you have? Vs. Annual billings?
>
> Coverage $2,000,000/$4,000,000
> Deductible $50,000
> Premium $80,000
> Billings $7,000,000
$50,000 deductible?
A premium amounting to 1.15% of your billings sounds about right. In well over 20 years of doing business, we've seen premiums anywhere from 1% to 2% depending on exposure/claims history.
Seems high our rate for a $10K deductible for a $2m policy has always been less than 1% of gross income. See if these guys will give you a quote.
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You have to also consider what type of work you do also.
> What E&O Insurance price and coverage limits do you have? Vs. Annual billings?
I'm eagerly awaiting details of my renewal, which comes up in 2 days. I carry $1M/$2M, and my premiums have generally run close to 2% of the prior year's annual billings.
We were able to get another 15% discount today by arguing that the tail period for our claims is, on average, shorter than the average tail period for other AES firms.
What this means is how long might the insurance carrier be exposed to potential claims, i.e., what is the statute of limitations for your work and when might the owner/client be expected to discover and file any claim.
We work in heavy industry. Our clients typically know very quickly if our work was good or a claim needs to be made.
2M/2M
1.4% of annual billings