Insurance

I received quotes from biBERK a few weeks ago, both for professional liability and general liability. The general liability quote was roughly the same as another one I received. The professional liability quote, however, was much less.

FWIW, I didn't use biBERK for either. Their online application barely asked any questions related to engineering and the person I spoke with didn't know anything about engineering either. She said they also couldn't provide any guidance in terms of writing an appropriate engineering contract nor provide any risk management guidance. The company may well be legit, but based on the price and the lack of questions on the application, I would be concerned if there was ever a claim.

NEXT is another one - super low rates, but spend some time reading reviews on various sites. The sales people promise the world, but you're left out in the cold if you actually need help. (Don't know from experience, just research.) I have a small operation, but I use the same broker as the big guys. Insurance sucks, but it exists for a reason. If I need it, I want to be sure it's there for me.

I use BiBerk for my general and professional policies for the last few years. It is generally ok. Certificates are easy to generate online. They added some online customer service tools that alleviate the need to wait on the phone.

I think their premiums are tied to expected revenue. I had a major boost in revenue from winning a large contract this year and as expected, my premium for professional liability doubled. My general liability actually reduced but the price is almost inconsequential.

@Eng16080 - great points about contracts and risk management help. Based on this maybe Ill only use biBERK for GL and get PL from a provider with more resources

@phamENG - totally agree I want the insurance to be there when/if I need it. Im not opposed to paying more for peace of mind. Who do you use for GL/PL?

TOLstryk - thanks for the input. I'm thinking Ill probably go with them for GL

Separate question, how did you all asses what limits you needed? I have a very small business, but want to make sure I'm covered.

I have a policy through AXA XL. Very solid company with good support. Lots of resources to educate yourself on liability, contracts, etc. I believe it's through them, but may be my broker, but I have a 'pre claim' fund that I can access without impacting my premiums. If I get a hint of a potential problem, I call them up and let them know. I had to use it once, thankfully it didn't come to anything for me. (Contractor screwed up big time and they were looking for somebody to sue.) But I called, told them what was happening, and they hired a lawyer for me, reviewed the situation, collected all of the necessary documents/information. I didn't have to pay a dime out of pocket. There was never an actual claim, so it doesn't impact my rates.

As for how much coverage...that can be tough. First, look at your primary clients. Do they have requirements? Most Virginia 'standard' contracts have a requirement for $2M/$2M, so if I wanted to do any work for the state that would be my minimum. I had one group that wanted to work with me, but their corporate standards required a $5M policy.

You may want to have a conversation with your lawyer about risk exposure and liability to get a feel for how much a mistake you make could cost your client.

After doing my own research, I also ended up with a policy though AXA XL for E&O. Per a discussion with my insurance agent, we determined that a limit of $1M/$1M would be appropriate for the kind of work I do.

AXA XL, as noted above, offers a lot of helpful resources for contract writing and risk management. This was great for me as I needed some guidance. The information I received from Pearl Insurance (ASCE) also looked very good.

My clients generally dictate to me what limits I need. I had a $1M claim / $2M aggregate policy for 2 years without issue. Now clients want me to increase to $2M claim & aggregate. Inflation maybe?

I also have AXA XL as well @ 1M/1M. They have been great.
I love it when I go to invoice a customer and they say they require 2M and that I keep my policy for for X years.
Uh, you shoulda asked about my insurance coverage before I started the job.

What do y'all do about a customer requiring you keep coverage for X years? How are you supposed to guarantee that?

XR250: I don't worry about that at all. The corporation makes the guarantee and that does not extend to me personally. If I stop carrying insurance it's because I'm out of business so it doesn't matter (if something goes horribly wrong I'm personally liable but that's a different issue). The only exception is when the client asks for a rider specific to that job (e.g. for $5mil policy whereas my normal is $2mil) then I just get the insurance company to quote the required extension as part of the fee and build that into the price.

If the client provides additional insurance requirements only after you've made an agreement or started work (e.g., not buried in a project manual somewhere - ask me how I know that) then they can get bent. If they want additional coverage then they can pay for it.

Have any of you used or heard anything about Beazley?

They seem to not only be the cheapest option I have found, but also have good educational/RM resources. The broker I spoke to also seemed knowledgeable.

@mikek396: Beazley is one of carriers that has come up in discussions with my broker I believe in a positive way. I don't think they are admitted, but most of them are not. You can get around that to an extent by looking at their financial ratings.