E&O Insurance 5

[Bammer25]

Wasn’t sure where to start this thread but do any of you have any recommendations on a simple policy for professional liability. I do some side work, maybe 20-30k per year revenue that I want to cover myself for. I just started an LLC to run it through and want a good policy. Wasn’t sure if there was a simple online place people use or just start calling around local insurance agencies.

 

[TOLstryk]

I use BiBerk for my E&O and General Liability. I did the research myself instead of a broker. I found many companies won't insure structural engineers. I wanted to use ASCE but I never got a response back after multiple emails and phone calls. I found that BiBerk had a broader range of coverage limits that work well for my side work.

 

[Bammer25]

Thanks for the response. I will look into them.

 

[phamENG]

I use McGriff for my business policies. GL and E&O. (If you do site visits, consider a GL policy, too.) Here are their Alabama offices.

They got me a good policy when I started. Same thing. PLLC with an anticipated $20k/year revenue. Very affordable.

 

[Bammer25]

Ah ok thanks. I have noticed I never get a call back or email back when I do this online. I’ll try these two.

 

[Bammer25]

I am not completely sure why I would need GL.

 

[Craig_H]

Speak with your broker, but my GL policy is almost free compared to the PL policy premiums.

 

[phamENG]

Have you ever dropped a tape measure while on site? Now imagine you're on scaffolding. And some unlucky soul is beneath you. That's what GL is for, among other things. Some GL policies will include data protection (somebody hacks the computer/server where you store all your clients' data), but not all. Say somebody has "Bamma Engineering, LLC" trademarked and they feel "Bammer Engineering, LLC" is too close and could reasonably cause confusion, they could sue you for advertisements that infringe on their trademark. GL would cover that.

 

[manstrom]

I use BiBerk.

Note that an LLC may not apply for structural engineering. In my case, I needed a PLLC, which is a little more complicated.

When I am working on a problem, I never think about beauty but when I have finished, if the solution is not beautiful, I know it is wrong.

-R. Buckminster Fuller

 

[271828]

I'd be curious how much the yearly premium would be on $20-30k. When I started getting E&O insurance, it was about $6k/year. I applied with gross incomes a bit higher than $20-30k, but still not huge income numbers. My guess is they'll want $3-4k for $20-30k/year gross. Because you'll be paying the premiums with after tax dollars, that's a sizeable percentage.

My premiums have gone down quite a bit over the last couple of years even though my gross income has gone up quite a bit. I'm not sure exactly how this stuff works.

 

[Bammer25]

Sorry I did create a PLLLC. They told me about the professional policy when I tried to do a basic LLC. I am hoping they don’t want 4K in premiums. Would it be advantageous to blow up my estimated revenue a tad?

 

[phamENG]

Would it be advantageous to blow up my estimated revenue a tad?

If by blow up you mean inflate or overestimate, then no. Premiums are usually based on revenue (expected revenue, in your case) because in a perfect world revenues trend with risk. In other words, the higher the risk, the higher your reward should be. Not always the case for us, but it's how economics tends to work in theory and, so, that's how insurance companies model their pricing.

3 years ago when I went for a policy for similar revenues, they wanted $2100/year with a discount program. I do one of their continuing ed courses every year and get 10% off my premium. I was also able to lock that rate for 3 years with no review of my revenues. I'm not looking forward to April...

 

[Bammer25]

A quick online quote at BiBerk yielded a 1400 dollar annual premium.

 

[XR250]

Because you'll be paying the premiums with after tax dollars, that's a sizeable percentage.

In the US, you can write it off a business expense so it is pre-tax dollars.

 

[Bammer25]

His cox said they cannot provide me a quote. Bi-berk is looking good

 

[phamENG]

Thanks for sharing the biBerk link. I just got a quick quote and the price doesn't go up much from where it is now...even though my revenues have increased by nearly an order of magnitude. Granted, that's going from zero deductible to $5k...but $5k isn't as much now as it was when that was 3 months of revenue. I like my broker and their service is excellent...but this may at least be a good bargaining chip when it comes time to renew.

It's a Berkshire company, which is encouraging, but I've heard horror stories from some of the 'direct' insurance companies that operate only online. Next insurance comes to mind. According to reviews I've read, it's easy to get a cheap policy and pay them...but good luck reaching them when you need them. As opposed to my carrier, who when I called them about a potential claim (thankfully nothing came of it), I had a lawyer assigned to me and a file opened within 2 hours, including coordination with my registered agent to ensure rapid transfer of service documents if they came. Cost me $0 out of pocket, and doesn't go on my "record" other than to say that I was proactive in addressing a potential claim.

 

[Bammer25]

I luckily have not had any issues, but I know I will one day. I am going to look around for another day or two but I’ll probably go with this biberk. It’s with 1000 deductible on 1,000,000 coverage

 

[AaronMcD]

I use Next Insurance. $60/month. List of stuff they don't cover like condos and other high risk stuff.

http://www.hellodwell.design

 

[XR250]

I use Next Insurance. $60/month. List of stuff they don't cover like condos and other high risk stuff.

$60 per month -= seriously? What are you billings and coverage limits?

I pay 10.5k per year for $650k billings for 5k deductible and 1m limit

 

[Bammer25]

I went to Next and they basically said sorry as soon as I said I was a structural. Hmmm