Need a book? Engineering books recommendations...
Fwd: Insurance[Subject Prev][Subject Next][Thread Prev][Thread Next]
- To: addseaoc(--nospam--at)euken.com
- Subject: Fwd: Insurance
- From: rlewis(--nospam--at)techteam.org (Richard Lewis)
- Date: 30 Jul 1997 14:44:02 GMT
Re: Tom Schaniel's posting of 5 March 1997 at 16:16 I have been in practice (in Arizona) for 31 years and carried E & O insurance for the first 3 years. My premium for the 4th year was going to double, so I decided to sit down and *read* my policy. I found that: 1. If I did not require any consultants that I use to carry E & O insurance, I was NOT COVERED. 2. The insurance company would select the attorney to defend me. Therefore, the insurance company would be the lawyer's client, not me. Since it is an attorney's duty to represent the best interests of the *client* it would behoove him/her to get a settlement within the deductible. If I wanted to have my own attorney defend me, the insurance company would withdraw and I would be responsible for my attorney's fees and any awards against me. In other words, I was NOT COVERED. 3. If the insurance company negotiated a settlement and I did not agree to it, the insurance company and their attorney would withdraw and I would be responsible for defending the case and any awards made against me. In other words, I was NOT COVERED. Needless to say, I did not renew my policy and in the intervening 28 years, I have not had one indication that a claim against me was being contemplated. E & O insurance *does* attract lawsuits. As much as we would like to think otherwise, lawyers are not dumb. When they take a case on a contingency fee basis, they want to know that there is money available for their fee. Example 1. I was contacted by an attorney representing a person injured in a construction accident who wanted to know if I would be interested in doing an investigation. To make sure that there was no conflict of interest involved, I inquired about who the architect and structural engineer was for the project. He quickly told me who the structural engineer was, but hemmed and hawed about who the architect was, finally saying, "We dropped the architect from the lawsuit --- he had no insurance." (I never heard from the lawyer again.) Example 2. I was retained by an insurance company to investigate wind damage in an apartment complex where wind toppled 13 wood frame and stucco chimneys. The insurance company filed suit against the architectural firm to recoup their loss, but dropped the lawsuit when they learned that one of the three partners was dead, another had filed bankruptcy and the firm had no insurance. Example 3. At a SEAOA annual convention a couple of years ago, there was a presentation on E & O insurance with the presentation being given jointly by a representative of an insurance agency and an attorney who was used to defend firms insured by the insurance company. To the chagrin of the insurance agency representative, the lawyer essentially said that if you are a small firm, you are not independently wealthy, and you don't have E & O insurance, you are not likely to be sued. However, he said, if you do have E & O insurance, you *will* be named in lawsuits. With regard to some of the *low cost* E & O insurance currently available, one policy that I am aware of is the policy available through ASCE. Because the premiums were so low, I called and got a sample policy. The policy requires *you* to defend the lawsuit up to the limits of the deductible, *then* the insurance company will look at the lawsuit and decide whether they will take over defense. **This is an insurance policy?** (Get the sample policy and read it if you don't believe me.) With regard to general liability insurance, I have not had any problems with getting and keeping one. I think that I have used only three insurance companies in the past 31 years. The general liability policy does, of course, exclude coverage for architects and engineers professional liability. A. Roger Turk, P.E. (Structural) A. R. Turk, Consulting Engineer Tucson, Arizona --- Internet Message Header Follows --- Received: from server1.seaoc.org (bqe.com [188.8.131.52]) by host1.texramp.net (8.8.5/8.8.5) with SMTP id VAA20421 for <rlewis(--nospam--at)techteam.org>; Wed, 5 Mar 1997 21:51:38 -0600 (CST) Received: from hil-img-4.compuserve.com by server1.seaoc.org (NTList 3.02.10) id ka005756; Wed, 5 Mar 1997 19:26:13 -0800 Received: by hil-img-4.compuserve.com (8.6.10/5.950515) id WAA07809; Wed, 5 Mar 1997 22:24:10 -0500 Date: 05 Mar 97 22:22:27 EST From: Roger Turk <73527.1356(--nospam--at)CompuServe.COM> To: SEAOC <seaoc(--nospam--at)seaoc.org> Subject: Insurance Message-ID: <970306032227_73527.1356_CHK58-1(--nospam--at)CompuServe.COM> Reply-To: seaoc(--nospam--at)seaoc.org Error-To: seaoc-ad(--nospam--at)seaoc.org X-Loop: seaoc(--nospam--at)seaoc.org X-Info: [SEAOC] Owner: seaoc-ad(--nospam--at)seaoc.org X-POP3-Rcpt: seaoc-ad(--nospam--at)seaoc.org X-Sender: seaoc-ad(--nospam--at)seaoc.org Precedence: list X-ListMember: rlewis(--nospam--at)techteam.org [seaoc(--nospam--at)seaoc.org] __________________________________________________ Richard Lewis, P.E. Missionary TECH Team rlewis(--nospam--at)techteam.org The service mission like-minded Christian organizations may turn to for technical assistance and know-how.
- Prev by Subject: Fwd: Re: Insurance
- Next by Subject: Fwd: Re: Insurance
- Previous by thread: Fwd: Re: Insurance
- Next by thread: Fwd: Re: Insurance