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Cost of Errors and Omission Insurace

Cost of Errors and Omission Insurace

Cost of Errors and Omission Insurace

(OP)
I just got a quote for an engineering errors and omission insurance policy that is about 10% of my current policy with the same coverage limits. The quote is from Next Insurance which caters to small businesses. My current insurance was through ASCE and Pearl Insurance.

This doesn't include prior acts (but I have not been in business that long). Even if I pay for extended reporting with my current insurance, I will still come out well ahead. I am wondering what I am missing. Has anyone used a company like Next Insurance versus the traditional insurance companies through ASCE for E&O insurance?

RE: Cost of Errors and Omission Insurace

No, but I'm curious to hear what others have to say. I'm coming up for renewal next year and my three year rate lock goes away. I'm a little scared and wouldn't mind having some more information.

How does ASCE handle it? Do you just submit an application to a nameless, faceless address and get some forms back to sign, or do you have a broker/account manager you can talk to? If you do, I'd reach out to them and ask them. Keeping in mind they won't be the most reliable source for balanced information, they can probably tell you what their product has that the other doesn't.

How long is "not long?" Also, did any of your completed projects have insurance requirements? If they did, they probably require you to maintain that insurance for a certain period. Going without prior acts could put you in violation of that contract. If the client receives annual certificates of insurance, then they may be tracking it and know that the project is no longer covered. Also, if your quotes/proposals/contracts mention your insurance, then you may have an issue if you drop it. That would be a question for a lawyer, though.

RE: Cost of Errors and Omission Insurace

(OP)
With ASCE, you have a broker through Pearl Insurance. I have not been impressed with my broker thus far. He could only find one insurance company willing to insure me, and it takes forever to get a certificate of insurance for clients.

I honestly prefer online automated services. This Next Insurance creates a certificate of insurance instantaneously.

Not long is 1.5 years in business. It has only been recently (last 3 months) that I have worked with clients that require a certificate of insurance. I do not mention insurance in my contracts, but do have a limitation of liability clause.

RE: Cost of Errors and Omission Insurace

I have no affiliation with this company other than paying them for the service they provide, but I'm thoroughly satisfied. McGriff Insurance Services has been great. What part of NC are you in? I work with their Richmond, VA office, but I believe they serve NC as well. They don't do automated COIs, but they are pretty quick. And my broker is fantastic. She's very responsive and helpful.

At the very least, they could probably help you in figuring out what the best course is. They may have some answers on Next and similar outfits.

Check out Next's BBB page. People who like them seem to like how easy it was to get insurance, and all gave them 4 or 5 stars. Almost as many gave them 1 star reviews for being incredibly hard to work with. Sounds like you get what you pay for...

RE: Cost of Errors and Omission Insurace

@pham

Is your broker Jenny? I work with the same office. They are pretty nice folks.
My rate actually went down after my three year lock even with increased billings.

RE: Cost of Errors and Omission Insurace

One in the same. Small world.

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