Insurance for solo shops

Do you have a "Limitation of Liability" clause in your written contracts? That's a very good way to protect yourself.

Posted by: @ncsudirtman

maybe if I was putting value of the project too low.

As a Surveying Corporation with $2M E/O liability insurance we were never asked the above question in all 32 years of business. Have you consulted with your engineering peers that were in a similar situation as you? Good luck insurance is like gambling. ?????ÿ

@peter-lothian?ÿ

yes to the best of my knowledge - I think the limitation is for the value of the services rendered. Need to revisit this just to make sure. but I'm never one to just put my full trust in that alone I guess

I don't think coverage is based on the value of your projects as much as on how much damage you're likely to cause.?ÿ It's hard to mess up a subdivision so badly that the whole thing has to be scrapped.?ÿ Not impossible, just hard to do.

Posted by: @ncsudirtman

@peter-lothian?ÿ

yes to the best of my knowledge - I think the limitation is for the value of the services rendered. Need to revisit this just to make sure. but I'm never one to just put my full trust in that alone I guess

That clause is your first layer of protection. The E & O insurance is the second layer. How thick do you need the second layer to be? You might want to consult a liability expert - maybe a lawyer, or someone at the insurance company (not sales). The consultation fee might be money well spent so that you don't over-insure to your financial detriment.

?ÿ

Tricky topic, when I was solo, I carried $1 million E & O and did a ton of commercial and other layout involving steel and anchor bolt layout, as well as residential infrastructure and housing layout.?ÿ I was comfortable with my coverage, even laying out multimillion dollar structures.

In what you described as being your case, it sounds like you work with others doing the initial work for your design.?ÿ If you make sure those who engage in the work leading up to your design and make sure that they are equally insured, any errors in their work resulting a claim against your work based on the information provided falls back on them to pay for.?ÿ

In the end, most of the things that can go wrong can get fixed through design adjustments and back charges to keep the insurance companies out of everything.?ÿ If they do get involved, they are not going to fight for you, they are going to settle before going to court, regardless of what their independent exports have to say.?ÿ

Posted by: @jim-frame

I don't think coverage is based on the value of your projects as much as on how much damage you're likely to cause.?ÿ It's hard to mess up a subdivision so badly that the whole thing has to be scrapped.?ÿ Not impossible, just hard to do.

agreed as I would like to think the same when it comes to subdivisions but I'm always a pessimist haha

@peter-lothian?ÿ

yes I should've considered that

In my case, insurance limits aren't chosen by me but rather are dictated by certain clients, mostly public agencies.?ÿ Even though I run a small solo operation, I have to carry $2M E&O, $1M general liability, and $1M auto.?ÿ The contracts pay for it all, though, so I'm not complaining.