Statute of Repose and tail polocy after closing company 3

[Prestressed Guy]

I am planning to retire in a year or two and trying to get a handle on my E&O insurnace costs after I close the one-man shop. Most of my work is in CA and WA. CA has 10-yr SOR and WA has 6-year.
My insurer through ASCE said that I could get a tail policy for a maximum of 5-years after retirement. When I asked about how that would work with the CA 10-year Statue of Repose law, she said "The what?" I was dumfounded. They said that the underwriter asked where I had gotten that information, so I sent them this web site Link
WTH?!?!? I would think that they would have known this. They are now telling me that they are in the process of writing a new type of policy which the hope will be excepted by the Insurance Commission in the next several years.
Any of you have any knowledge of how to proceed so that I can retire sometime this decade?

 

[Aesur]

Congrats on coming up on retirement! I have been thinking more and more about that myself, but unfortunately I'm still in my 30's, so I probably have another 70+ years at this rate . This is an interesting issue as I too am surprised they didn't know about this, especially being through ASCE. A quick loophole thought I have, and it may cost a bit more, is could you not "maintain" your company as an entity for the next 5 years, but take on 0 work, pay normal insurance costs and then add a tail policy at the end?

 

[NorthCivil]

most engineers i know keep working until they eventually croak. good on you for trying to get out early!

 

[XR250]

I am debating this myself. I am leaning towards going commando.

 

[Prestressed Guy]

That is not a great way to enter into retirement with an anvil hanging over your head. My E&O is 2m/2m and the only option they are currently providing is basically way Aesur suggested. Stop working and pay full E&O for 5 years then get a 5-year tail policy. It seems that they do not even make much of an accounting to the decreasing exposure from the projects that are beyond the SOR.

Have I ever mentioned how very much I hate all insurance companies?

 

[AZPete]

Have I ever mentioned how very much I hate all insurance companies?

Imagine a world in which the societies of engineers self-insured as co-op owners, with excess reserves going to retirees as dividends.