Professional Liability Insurance
Professional Liability Insurance
(OP)
I am a licensed PE and at a point in my career where I can afford to be a private consultant. Regarding professional liability insurance, I would like to benefit from the experience of some of my colleagues out there....How much coverage does a geotechnical engineer need? Any thoughts??
Thank you
Thank you





RE: Professional Liability Insurance
My expeience with one very big case was quite good with a very generous company. Can they generally explain their past practices on actual claims? They probably want some guarantee that you use a certain form of contract on every job.
If you have a claim will they drop you? If so, you will have tough time getting any other company to cover you, becaues you will have to state the dropped situation in the application.
I'd add one other thing. If married and in a state with marital property laws, see sbout diverting yourself and wife from that requirement and also then gift all your assets to wife, except for retirement funds (assuming that can't be attached).
Then, each job has to have that client know of your marriage arrangement and a contract that states such wife assets are immune from claims. I add a "terms and conditions" on the back of every invoice also to help cover this, just in case.
Tbis "may" help in case of no insurance, but who can predict what lawyers can accomplish.
RE: Professional Liability Insurance
RE: Professional Liability Insurance
Off hand I would think 500k to 1 Million would be the range for a person doing say 200 to 300 jobs a year varying from site investigation reports to construction inspection to solving problems brought to your attention for your advice.
If you are into jobs with considerable risk as to the outcome coming as planned, then I'd be on the high side. Consider the problems that are not under your control, such as weather, tight-wad clients not paying for construction control, etc. Any work for attorneys or site developers is likely to be in such a situation. Of course some engineers refuse to work for this type, due to their general bad client relations habits.
RE: Professional Liability Insurance
RE: Professional Liability Insurance
I carry a $1M policy with a $1M aggregate. The cost of the insurance is usually based on your GROSS fee level (if you subcontract a lot of work, you get zapped for the extra fees), so be sure you build that cost in.
I carry insurance primarily because many of my clients require it. I use my own contract for most work and my general conditions clearly cover my liability.
RE: Professional Liability Insurance
RE: Professional Liability Insurance
In such a case, I've lost a job ar two doing that, but who needs more liability?
Hey, being a consultant is not always such a nice place to be. However, the rewards can far exceed those of being an employee.
RE: Professional Liability Insurance
RE: Professional Liability Insurance
Interesting to note that I was recently contacted to look at a subdivision near a lake that is underlain with a great deal of peat...perhaps I will pass on that one. 3of12
RE: Professional Liability Insurance
If you have some expertese in fields that ocasionally result in disputes, being an expert witness is fun. However, too many such jobs in a short time can give you a "hired gun" reputation. I can't recall the place, but attorneys sometimes refer to lists of experts in certain fields for consultants. They seem to like to get them from "out of town" to avoid local political problems.
Gas explosions in the winter make for interesting work.
Nice to sit on such cases when they are not involving your own work, HA. No insurance needed then.
RE: Professional Liability Insurance
Just one man's opinion. . . .
f-d
¡papá gordo ain’t no madre flaca!