I??m curious about what others have done concerning professional liability insurance when they??ve retired. ?ÿI??ve been solo for the last few years which allows me to be semi-retired, i.e., don??t have to worry about keeping someone else busy, etc. I??ve carried P.L. insurance for the last 26 years. My ?ÿbroker tells me that ??tail coverage? premiums ?ÿare about the same as my existing policy premiums, not chump change.?ÿ
My gut feeling is that I don??t have a whole lot of exposure, partly because Oregon has a statute of limitations for surveying (ORS 12.280) and partly because of the type of survey work that I primarily engage in now (and for the last several years) ?ÿ- rural/semi-rural, boundary related.?ÿ
All that being said, I know that anyone can sue anyone for anything. So again, I??m curious about other??s ?ÿtake on the subject.
Forgive my ignorance, but doesn't the PL insurance policy cover work that you did during the policy period?
For example, you did a survey in 2014, paid PL insurance premiums that year to Company A. In 2016 you change PL insurance carriers (now Company B). You then get sued in 2022 for something pertaining to the 2014 survey. Doesn't the insurance company (A) you had in 2014 have the responsibility to indemnify you?
Doesn't the insurance company (A) you had in 2014 have the responsibility to indemnify you?
Many policies, you're only covered if you continue the insurance and keep paying.
I believe the premiums are usually based on annual gross revenue. Next question, if the premiums are based on annual gross revenue, how do they calculate premiums when one is retired, and has no revenue?
Premiums cover you as long as you pay.
If you pay for twenty years and then stop you will not be covered for an issue that occurs on the work you did in the past. Premiums are based on your income. Once you stop, there is a "rider" to continue coverage for the work you did in the past.
The analogy I like to use is this: If you pay me $500 per week, I won't break your legs.
You'd think that would be a fair way for it to work from the policyholder's perspective, but many comments on this forum in the past indicate it is usually coverage for suits filed during the premium period, not work performed during that period, because the insurer doesn't want that poorly defined liability in their future.
Many policies, you're only covered if you continue the insurance and keep paying.
That's how mine works. I've had the same broker the whole time I've been in business. He's recommended switching carriers a couple of times, which I've done. He hasn't suggested any other types of policies.
Next question, if the premiums are based on annual gross revenue, how do they calculate premiums when one is retired, and has no revenue?
I asked my broker that also. He doesn't know how they calculate the premiums for tail coverage... he just said he was quoted a premium that was about the same as my current policy. His suggestion was, since the premiums are about the same,?ÿ keep paying for the current policy so that I can take on the work if I wanted (tail coverage only covers prior work, not current work.) I've done that for the last few years but now I've decided to actually quit.?ÿ
Upon retiring I wasn??t offered any option concerning liability insurance with one exception, that being a policy for five years for only 12k/year which I declined.
The statute of limitations here is 2 years from the date of discovery. Which means forever. Since all my work was production housing I??ll take my chances without liability insurance. If something pops up you can bet you will hear from me. ?????ÿ
Does the tail coverage premium go down with time or is it always similar to current coverage?
?ÿthere are advantages to having a corporation or llc
?ÿ
I thought that courts have determined that having an Inc or LLC doesn't shield you from liability.?ÿ
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I think that statute of limitations is something that all of us should be concerned with and our national and state societies should be working to fix.?ÿ No one should have to be worried about a survey coming back to haunt, years after you've left the game, either for retirement or to pursue other interests.?ÿ
Yeah, I know, some of you smarmy and holier than thou types here will start in with the, don't make mistakes and you won't have to worry, BS
I think I'll become a nomad during my retirement. Can't sue me if you can't find me.
