Professional Liability Insurance

[coaleng]

I have just started my own structural engineering firm and the insurance companies are quoting $15,000 to $25,000 a year for professional liability $1M coverage. And most wouldn't quote me because my revenue projections were below $100,000. if this typical? I am the only employee.

 

[SteelPE]

How many companies have you received quotes from? That does seem pretty high. Did you ask them why the premiums are this high?

 

[msquared48]

What kind of projects are you involved in?

Mike McCann, PE, SE (WA)

 

[beej67]

I pay about a third of that in civil/site.

Hydrology, Drainage Analysis, Flood Studies, and Complex Stormwater Litigation for Atlanta and the South East -

http://www.campbellcivil.com

 

[glass99]

When I started E+O was $3k/yr for $1MM coverage and $200k turnover. According to my broker, for structural engineers it should be 2.5-3.2% of turnover with a min of $3k premium.
-> Careful how you fill out your application form.

 

[zdas04]

I pay $15k-$25k, but I'm in Oil & Gas not structural/civil. All of the policies that I've looked at are $/$k gross revenue. If your gross revenue is below $100k then the quotes I've gotten have been the maximum $/$1k times 100. As gross revenue goes above $100k then the $/$1k number goes down (and is the percentage that Glass talks about). I've never had anyone not quote when my expected gross was below $100k.

David Simpson, PE
MuleShoe Engineering

In questions of science, the authority of a thousand is not worth the humble reasoning of a single individual. Galileo Galilei, Italian Physicist

 

[coaleng]

I have only had three quotes. the local agents received quotes from Loyds London, Victor Schinnerer co., and Hull and co. I design foundations, steel structures such as coal preparation plants and conveying systems, some metal building foundations and forensic evaluations of steel structures. I was told by one insurance agent because "structural" was in the company name the quote would be higher than if I was just ABC engineering.

 

[msquared48]

Coal dust and forensics might be what is driving this high figure. Ask your broker further...

Schinnerer is usually pretty reasonable from what I have seen. I would expect high quotes from Lloyds.

Do you design in a high seismic area?

Mike McCann, PE, SE (WA)

 

[glass99]

msquared: Is forensics considered to be high risk? I would not have assumed so, but maybe it is.

Coal sounds like a red flag to me. I think the Centralia mine fires, explosions, shoring failures, massive industrial accidents, etc.

Structural is a higher risk category than architecture, meaning you will pay 3% of net fee rather than 2%. 20% is way out of line. I have been insured through Hudson for the last couple of years, and before than Liberty Mutual.

 

[msquared48]

Ask Ron, but with forensics, I see a higher risk of potential involvement in litigation proceedings, whatever the type of involvement. Just guessing here...

Mike McCann, PE, SE (WA)

 

[coaleng]

Thank you all for the input. I will investigate further to see which items are driving this cost.

 

[Ron]

coaleng...that's about in the ballpark. Depending on provider, I've paid between 15k and 25k.
I do mostly forensic evaluation; however, there are changes in my state's legislation that might make me re-think all of this. Morons in legislature!

 

[Rye1]

The geotechnical may be the trigger. Each time I'm asked to renew my policy, I'm asked if I do house inspections or geotechnical work.

Robert Billings

http://www.newrivereng.com

 

[brandonbw]

We went through The Hartford, as another place to try.

B+W Engineering and Design | Los Angeles Civil Engineer and Structural Engineer

http://bwengr.com

 

[jdgengineer]

Depending on the type of work you do, I recommend getting quotes through the ASCE program. The quotes we received were nearly half of quotes we got from other carriers. Its insured through Lloyd's of London, but I believe a special rate through ASCE.

Dont need to be member to get a quote. Do need to be one to purchase.