I'm quoting a project that could bring in $15-20K in billings. The client an engineering firm is looking at us as a sub-consultant and is requiring a coverage "Excess Liability Umbrella form, bodily injury, and property damage combined" each occurance $10M and aggregate $10M. The client is allowing me to add in the expense of the extra coverage into my estimate, because they want us to do the job. I tried to explain that we just have a surveying instrument and two men walking around, a much lower risk than a contractor with a bunch of machinery running around... they don't bend. The work consists of doing layout and boundary work for a new utility.
I contact my insurance agent and she says you cannot just get a umbrela just for one job, it is quoted for the whole year. Also, the insurance companies do not want the policies limites to go up and down, so they want you to keep it. I'm waiting for the insurance quote, but I'm quessing the umbrella is going to be about $4K.
I'm not real sure with the ins and outs of the insurance coverages.
Does this all sound right? Can I purchase an umbrella policy from another company? Is it correct that I can't get an umbrella for just one job?
Any input would be helpful.
Thanks
Yes it is way too excessive.
Write the proposal giving them the option. The estimates fees are $15,000 to $20,000 with an option for this umbrella insurance of $4,000 additional.
I just got through with a large proposal turned massive as they wanted certain insurances in place. I added very specific language as to the limits of liability of my firm and what we were really doing with our work (surveying and engineering). It bulked the proposal to 11 pages with 3 attachments. It was my 4th revision of the proposal and I almost threw in the towel.
F-ing lawyers ruining the world.
I once had to get a $2 million policy just to teach a class. Highway department rules. I just added it into the proposal. Yes, and it was a one year policy for a 2 day class. No problem.
Jerry
