Professional Insurance . . . Getting started
Professional Insurance . . . Getting started
(OP)
I am currently in an industry facing a downturn. While many are being laid off, others are jumping ship. I feel a commitment to see my position through to the end but have a fear of showing a gap in my employment when my day comes. I decided to do all of the paper work, fees, submissions, licensing to start my own firm (sole proprietor) to keep in my back pocket so I can do consulting right out of the gate (Phase 1). Now, with my firm on the books, I am trying to figure out the best way to start out (Phase 2).
Insurance is my biggest question at this point. I understand that while professional E&O insurance is costly, it is an imperative. I also understand that it can be a process to initiate. I am trying to plan how to approach it and could use advice. Particularly, how to balance shouldering the cost of sufficient coverage with potentially scant cliental for the first several months. Here are some thoughts, but I would like constructive input:
Insurance is my biggest question at this point. I understand that while professional E&O insurance is costly, it is an imperative. I also understand that it can be a process to initiate. I am trying to plan how to approach it and could use advice. Particularly, how to balance shouldering the cost of sufficient coverage with potentially scant cliental for the first several months. Here are some thoughts, but I would like constructive input:
- Start off offering only drafting, with the understanding the client is responsible for the engineering.
- Offer only low risk (if there is such a thing) services (could use suggestions on what this might be).
- Scrutineering, that is evaluating other's designs against manufacturer spec sheets and application manuals.





RE: Professional Insurance . . . Getting started
If you are mostly working with engineering firms then you might not find yourself with that contractual minimum insurance. The two times I've gotten paid by engineering firms they didn't require it. You can protect yourself nearly as well by being picky about clients as by having insurance.
I understand that if I was a GeoTech or Structural Engineer working from a Yellow Pages add my attitude would be very very different. I just don't find mainstream industrial clients to be that big a risk of a lawsuit.
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
RE: Professional Insurance . . . Getting started
Thank you for taking the time to answer my questions.
RE: Professional Insurance . . . Getting started
RE: Professional Insurance . . . Getting started
B+W Engineering and Design | Los Angeles Civil Engineer and Structural Engineer
http://civilengineer.la
RE: Professional Insurance . . . Getting started
I was kind of forced into my own business when my company went out of business in 2012. In this instance I had to dig into my savings to pay for the insurance. I would say that if you can't afford the insurance then maybe you shouldn't be looking into going out on your own, after all, insurance is just a drop in the bucket.
RE: Professional Insurance . . . Getting started
This topic has been batted back and forth many a time in many forums. Each to their own. I've considered and reconsidered and might reconsider again. Keep coming up with the same conclusion I shared. It's not just a matter of being able to afford it. It's also a matter of getting value out of what you spend you money on. Have you had to use your insurance yet?
RE: Professional Insurance . . . Getting started
RE: Professional Insurance . . . Getting started
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