Generally requested professional liability limits from clients?
Generally requested professional liability limits from clients?
(OP)
I've been operating off of a $1 million professional liability (errors/omissions) policy for a very long time now and typically had no problems. Of late, one of my better clients is requesting $2 million on E&O. I'm not sure why, but they're a larger client so it's difficult for me to speak with those in the "adminosphere" making the decisions on that. Have any of you encountered something similar? Industry trend, or just a peculiarity with this particular client?
Hydrology, Drainage Analysis, Flood Studies, and Complex Stormwater Litigation for Atlanta and the South East - http://www.campbellcivil.com





RE: Generally requested professional liability limits from clients?
RE: Generally requested professional liability limits from clients?
Hydrology, Drainage Analysis, Flood Studies, and Complex Stormwater Litigation for Atlanta and the South East - http://www.campbellcivil.com
RE: Generally requested professional liability limits from clients?
RE: Generally requested professional liability limits from clients?
Curious.
Hydrology, Drainage Analysis, Flood Studies, and Complex Stormwater Litigation for Atlanta and the South East - http://www.campbellcivil.com
RE: Generally requested professional liability limits from clients?
My original carrier wanted over $17k for a policy that never had a claim against it. I made the switch and the cost was so low paying the extra 60% didn't bother me.
In any event, this policy has been ongoing for over 10 years with the same limits. I haven't been asked to increase the premiums. I know a few engineers who I talk to who went from $1M to $500k as they are nearing retirement and winding down their client list.
RE: Generally requested professional liability limits from clients?
General Liability: $1M
Biz Auto: $1M
Excess Liability (per occurrence): $5M
Workers Comp: $1M (or by law)
E&O: $1M
The most expensive quotes I got for those coverages was E&O and the excess liability. Of course, I put the burden back onto that client in the form of a retainer (so I could pre-pay the insurance) and still don't have any work from them.
--Scott
www.aerornd.com
RE: Generally requested professional liability limits from clients?
RE: Generally requested professional liability limits from clients?
Swertel, what happens to the retainer when they don't give you any work? Couldn't you still be on the losing end of that deal?
RE: Generally requested professional liability limits from clients?
RE: Generally requested professional liability limits from clients?
In terms of being requested to be added as an additional insured, my insurance company gave me a (pdf) flyer to provide them that explains why it is so bad, for them as well as me.
--Scott
www.aerornd.com
RE: Generally requested professional liability limits from clients?
Those of you turning down work because the client wants to be added as additional insurd's are dropping good money for reasons that don't provide you more protection (well, you ARE more protected from jobs yo don't do than from jobs you do do...). Adding additional insured's does not change the nature of your coverage or of the additionally insured, according to our insurance agent. After all, if there was some change/increase to the coverage/liability, don't you think your insurance company would want money for it? But they don't. They'll give you certs with additional insurd's all day everyday for free. There is really no purpose to the added party in being added. It just makes them feel warm and fuzzy. We are hyper sensitive about liability (have legal council on indefinite retainer) and we do this all the time.