Partners don't want to pay for prof liab insurance 1

[INBCPE]

One of the companies I own is a mechanical contracting company. We have "engineering" in the name. I'm the responsible PE in charge on the certificate of authorization. I just found out today that in a cost cutting move, the two other partners (non PE's) allowed the professional liability policy to lapse 4 months ago. After I filled out the renewal form, they simply didn't write the check. I've sent out quite a few proposals in that time, and completed work.

I'm not comfortable operating without the PL policy, but our state doesn't require it. Any one else ever run it this issue, or am I the only moron who has non-PE partners?

 

[zdas04]

Interesting. Was it PL insurance or builder's liability? The government seems to have stepped in and regulated builder's insurance.

David

 

[Ron]

Contractors don't generally carry PL insurance. Theirs is CGL (commercial general liability) or it could have been a builder's risk policy.

Any chance it was actually a performance bond policy?

 

[stevenal]

Whatever is needed (in addition to the bond, also lapsed) to get licensed. Contractors board gave me the name of company and agent. Agent happened to be my own for a homeowners policy. Agent claimed policy did not cover workmanship and refused to help, so I contacted the company who did. The fact the policy had lapsed was never an issue. Took homeowners policy business to a new agent. Since the rework/repair had already been done, I bought a cheap old well used boat, and named it "Settlement".

Regulation of contractors' insurance is nothing new, I'm speaking of events that occured over twenty years ago.

 

[INBCPE]

Update: I laid down the law. I told them they could forget about me doing any more work until a policy is in place. I make more money with my one-man engineering firm anyway. I told them to stop telling people we do engineering work, take engineering out of them name, I'm going to cancel our certificate of authorization, and contact our current clients to cancel our purchase orders and provide them with recommndations for engineers that could complete the work we started, including my little engineering firm.

Boy, did that wake people up. Meeting with agent is set for Friday morning.

 

[MacGyverS2000]

I'd get it all set back up... just in time to tell your two "partners" you intend to do things without them from now on. If they're willing to do this without a second thought, imagine what the future holds? Think about how this would have turned out if you received a notice of lawsuit before finding out you're not covered?


Dan - Owner

http://www.Hi-TecDesigns.com

 

[IRstuff]

You'll need to watch these guys like a HAWK; fool you once, shame on them, fool you twice...

TTFN

FAQ731-376

 

[dik]

Couple of observations (and, I'm not a lawyer):

In many jurisdictions, your company can be sued... and your partners can countersue you!

Just because you don't sign a proposal, etc. you may be liable, anyway... being the only technical person with an Engineering company.

Just a couple of thoughts.

Dik