I have a feeling I am paying too much for Professional Liability Insurance. I have had the same provider for 15 years or so, never a claim. I believe they type of work I mainly due is unlikely to ever have a claim, but of course some clients require it, so it is necessary.
But, when I look at applications online (for example the NSPS provider), they always want you to list your current premium. That is like me asking a potential client what they are paying now for a service so that I can undercut by a little.
What if I leave that blank? Are there any that don't ask that? Even my yearly renewal makes me list the premium for the last several years.
I think the main factor for PL policy premiums is what you made in sales the year before.
> What if I leave that blank? Are there any that don't ask that?
Never had to show that number for E & O. Mine is based upon gross billings for the last three years and projected current year.
However when shopping around for auto ins., I have had agents ask for that number and I never give it to them.
Jim
Just put in a zero, maybe they'll take that to mean you don't currently have any. 😉
Some are probably different, but in my case my agent is a different entity than the actual underwriter. The underwriter is the one that wants to crawl all up into your business. The agent just needs your info to complete his app to them.
I'm thinking that present coverage premium amounts fall in that "nunya" category. The last app I filled out was mainly interested in annual fees and a percentage breakdown of those fees as applied to types of surveying. I also maintain a high deductible (10K) on the attorney fees should something make it to litigation.
I'm sure we all understand not to claim that 95% of your annual fees are from construction staking...B-) ..I rarely state over 5% of my fees are connected with construction projects. I am also fortunate that the lion's share of my fees are RW and easement preparation and documentation. The underwriters apparently feel that's a low liability area.
Liz: I believe that too, but from what I have heard others say, mine seems high. I was paying for auto insurance with this broker as well, and then I switched to a commercial policy with my personal insurance agent, and it was less than 1/2. So i am a little suspicious of them now.
Our E&O is nominally 1% of Revenue; the higher the deductible the further below 1%; The lower deductible the further above 1%.