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Re: E&O Coverage

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I started my firm two years ago.  I don't know if the experience of a
Virginia engineer will prove valuable to those on this list serv but I'll
offer it anyway.  I found that one of the hardest things to do was to get a
response from professional liabilty carrier.  I wanted a specimen policy so I
could compare coverages as well as rates.  The 800 numbers in Civil
Engineering Magazine were pretty much a run around.  I couldn't figure it
out.  After spending all that money on full page ads in professional
magazines, you'd think they'd follow up on the leads that are generated.   I
eventually bought a policy from CNA/Schinnerer.  Their agent was the only one
who would share a specimen policy with me prior to getting my check.  They
have a small firm program. (1-800-SMALLFIRM)  The premium is guaranteed for
three years.  Anticipated billings and the deductible figure in to the rate
they quote.  No doubt the legal climate where you work is also a factor.  I
received the following quoted rates in 11/95:  
Per claim/ annual aggregate/Annual Premium   ($1,000 deductible)
100k/300k/$1,940
250k/500k/$2,980
500k/1M / $3,840
1M  /1M /  $4,620

I haven't had any claims on my policy but at a previous firm we were defended
by lawyers hired by CNA against a bogus claim by a contractor client.  The
attorneys were excellent.  They even countersued to collect our unpaid fees
for the project.

Jan Harris, PE