Professional Liability Insurance

[kkoloj]

Hello:

In a couple of months I will be going on my own and therefore am currently shopping for professional liability insurance. Could anyone suggest a company to consider, and companies not to consider? And why? I would truly appreciate any comments.

Thank you.

 

[fndn]

When your business is less than a year old, it is very difficult to get coverage. Ask your current firm's insurance or call a colleague who is in business and have them refer you. Also note that you will likely deal with the brokers instead of the insurance companies directly.

If you're coming from the government sector or have little contact, then try to join ASCE or NSPE and then get quotes from their insurance affliates.

 

[archeng59]

contact an insurance agent who specializes in E&O insurance for engineers. typically they will shop you around several different companies to get you the best deal. talk to them about getting a policy that locks your premiums for three years. that may or may not be something you want to do or can do, but as a startup company your premiums may increase significantly between the first and second year. best to put off an increase until you've been in business for a couple of years. depending on the type of work you do during the first few years, your insurance could increase quite a bit in addition to the normal annual increases.

 

[Bagman2524]

ASCE used to offer professional liability insurance for about $600/year. I'm not sure if they still offer it though.

 

[Ron]

Go to

http://www.xldp.com

I have my insurance with XL Design Professional. They have programs for single practitioners and others.

 

[samdamon]

Believe Kemper and St. Paul have e&o insurance programs for smaller firms.

 

[PEinc]

Originally, I had DPIC until just after 9/11/01. Then I had Kemper but they eventually got out of the professional liability market and I'm now with XL who is somehow involved with DPIC. I think I went around a circle! The only things that changed are that the insurance got more expensive and the deductibles increased.

 

[RockEngineer]

The two universal constants are premiums will rise and insurance companies will make money.

 

[IFRs]

If you don't mind telling us, how much is the premium and wht kind of engineer are you?

 

[PEinc]

Who?

 

[IFRs]

Ron and PEinc, since they seem to have insurance.

 

[archeng59]

I'm not Ron or PEinc, but I have currently have E&O insurance thru US Specialty. I've had E&O insurance with Ramco and DPIC. Switched from DPIC to Ramco when XL purchased DPIC.

current premiums are approximately $18000 per year.

 

[IFRs]

archeng59 - what type of work to you do? Have you ever used the insurance?

 

[archeng59]

primarily commercial, schools and health care buildings. one claim in last 10 years.

 

[PEinc]

IFRs,

Click on my name for a description of my work. I carry $2mil/$2mil for about $14000 per year before a credit for using LOL and for education credits. So far, no claims in about 8 years of coverage. I probably just jinxed myself! My volume is up a lot this year so I'm sure my next premium will increase also.