What are you guys using for errors and omission insurance? I currently have O&E insurance but it has gone up about 100%. I'm a small shop, me and another guy and it's running about $4.5K/year. I was wondering what everyone else is paying and who you are using? Thanks for any or all replies.
Same thing happened to me last year. I have State Farm. Also, my general liability went up and I was forced to carry workers compensation insurance by a couple of different clients, so my prices have increased to reflect the changes. I don't know if you're going to find anything much cheaper than that.
I switched last year from my local broker to Hall and Company. They gave me a much better rate fixed for three years.
When I was in business, my E&O was based on my annual billings. That is going to be a large part, along with the type of work you do.
I carried general liability, workers comp, commercial auto, inland marine, etc.. I was insured as much as the company I went to work for, but then again, I was doing a large amount of commercial work.
MISSOURIMULE, post: 354974, member: 9473 wrote: What are you guys using for errors and omission insurance? I currently have O&E insurance but it has gone up about 100%. I'm a small shop, me and another guy and it's running about $4.5K/year. I was wondering what everyone else is paying and who you are using? Thanks for any or all replies.
If you haven't been in business long, please remember that each year you are in business increases the liability on your carrier. Two years with $200,000 worth of billing ($400,000 worth of billing) brings twice as much liability as one year of billings at $200,000. You can theoretically be sued this year for any of your past work, so your premium cost should be increasing each year to match your increasing liability. It sucks, but it is reasonable.
I always try to get a level premium for two years when I renew. It keeps my premium from going up next year & saves me from doing all the paperwork every year. I just have to fill it out every other year. I also use an agent that specializes in errors & omissions insurance. He gets me multiple quotes & always beats the rates I get from local insurance companies. I am also a member of ACEC, so I get a quote from them too. Last time they got me a better quote. I used that quote to get my current carrier to match it + they promised to keep it level for two years.
In my experience, I have to get multiple quotes on all big purchases (equipment, insurance & etc.). If I didn't, I'd waste about $500 to $1000 on every big purchase I make. A penny saved is a penny earned.
It's such a scam. I've had many friends tell me how they always settle and then they raise your rates. My experience was when I was in business for myself. It went up every year. So did my billings so no problem there. Then when my billings went south because of the economy they went up still again. They said based on last years claims on the industy when times are slow people are more likely to make a mistake and cause a claim. Scam I tell you scam.
