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Re: Limit of Liability

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>     By the way ASCE has very good rates for small companies and individuals
>on E & O insurance. It is a fraction of what it used to be a few years ago.
>     
>      Tom Harris , SE
>      Thousand Oaks, CA

ASCE (Kirke-Van Orsdel) offers very good rates for companies with gross
anual billings of less than $100,000. As a matter of fact, their rates are
more than half of the competion such as DPIC and CNA's underwriter.  For
billings of $100,001 the rates are more than double with no sliding scale.
They offer limited or no help on contractual issues and there do not have
the educational services that others provide/require. I have been told ( by
ASCE's competetors ) that there are some holes in their coverage. Also
being in Iowa might have an impact on your representation if and when you
need it.

Back to the issue of limiting your Liability to your fee. I can not
remember when I have had a client agree to this. Of course this would be
great to get, but this seems somewhat unrealistic to me. I would never sign
such a contract. I have found that this clause is most often presented by
engineers that do not have any insurance.  But, there is something to be
said for this, in that no one is going to go after someone if they have no
insurance or assets. I personally do not subscribe to this idea. Once you
decide to go the insured route you can look forward to paying premiums and
trailer premiums for the rest of your life. As an aside, I have been told
that you can "homestead" your house up to certain limits if you feel you
need to protect this asset, however, you will never be able to refinance,
get a loan or sell it until the homestead status is removed.
Regards,

Jeff Smith. S.E.
phone: (415) 543-8651
fax: (415) 543-8679
email: smthengr(--nospam--at)sirius.com

Smith Engineering
27 South Park
San Francisco, CA 94107