Insurance

It varies. quite a bit, depending on deductible, coverage, how many license's' etc.

Ours is very reasonable, less than 2K/yr. Check with Assurance Risk Manager, from NSPS I believe.

Dtp

I'm not sure, but I get the impression that it's the "PE" that drives up the premium more than the "PLS". I'm both, and my premiums hit $7500 per year a few years ago with my little one-man office.

I found a new agent who was able to get me a policy with Travelers for about $3000 per year.

I used to think like your boss, until I was included in a lawsuit without any coverage. Now I consider it a cost of doing business, and would not be without it.

Excellent. Thanks for the input, this is good information. I'd think a policy for 3-5000 is a no-brainer. We will be speaking with him on the matter.

Thanks again.

-V

>My boss, who doesn't like to carry b/c he thinks we will get sued more..

I've heard this a lot over the years.

The way I look at E&O insurance is like this: as much as I'd like to think I am, I'm not infallible. The insurance is there for my client as much as, if not more, than for me; if I were to make an error or omission that was to impact a client financially, the insurance provides that I have the means to make them whole.

:good: Perfect explanation.
If a project were really to be FUBAR, wouldn't it be great if my client could be made whole and my own finances remain reasonably intact? This is possible with insurance. Your premium is based on your billings, type of work, and liability history. In other words, it is designed so that you can afford it.

Check out Darwin E&O. Actually, have your local commercial insurance/bonding brokerage check this out for you. There is no reason to shop insurance on your own. Let a pro handle it. Then they can issue certificates of insurance for clients when needed, compare rates, and advocate on your behalf. You go in once a year, sign some forms and write a very small check. Call around to different local commercial brokerages until you are talking to somebody who already knows exactly what you need.

> Could anyone give a rough range of cost for a typical errors and omissions insurance package. My boss, who doesn't like to carry b/c he thinks we will get sued more is quoting huge numbers that I think are way out from reality. The PE and myself here are the primary licenses and we are going to start pushing the issue.
>
> Thanks in advance.
>
> -V

1.5%+/- billings...

I've heard one must be careful when moving E&O to another company. Your past work will not be covered when you switch to the new company? My 2 cents, Jp

I was able to do this. The second E&O company must accept the start date of the policy with the first E&O company; that is, a retroactive start date.

I was actually happy with my first carrier, but when I (essentially) closed down my own small operation to go to a large firm, the first carrier didn't want to renew (and I wanted to keep a policy in place for reasons stated downthread). My broker was able to find a second carrier who would put a policy in place with coverage of work back to my original start date.

:good:

-V

Our rates are a function of last years billings and were about $12K last year.

Thanks! Good to know. Jp

> The insurance is there for my client as much as, if not more, than for me

I agree with the statement, but it's not what motivates me to carry insurance. I carry it for two, and only two, reasons:

1. To protect *me* in the event of a claim for damages. My clients can (and regularly do) protect themselves.

2. To qualify for jobs for which I wouldn't be eligible without insurance. This is the result of my clients protecting themselves: they don't want to expose themselves loss as a result of an error I might make.

Just received my quote today to renew from three different carriers. Yearly premium is $33,000.