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E&O Coverage

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Dennis,

As I have said before, the ASCE policy is terrible, but it is cheap!

Here are the premiums from a recent mailer that I received:

$100,000/$300,000 with $1,000 deductible:

Up to $50,000 annual billings:        $850.00/year
$50,001 to $100,000 annual billings:   $1,300/year

$250,000/$500,000 with $1,500 deductible:

Up to $50,000 annual billings:         $1,400.00/year
$50,001 to $100,000 annual billings:   $1,800.00/year

You, and all other engineers in the firm, *must* be a member of ASCE.

I would suggest that you look into "project" insurance since this is your 
only client that is requiring E & O insurance.  At one time, you needed to 
carry basic E & O insurance in order to get project insurance, but it is my 
understanding that that has now changed --- that you can get project 
insurance without carrying basic E & O insurance.  (I understand that all 
of the E & O insurance companies, DPIC, CNA, etc., offer project 
insurance.)  In my opinion, *this* is the only type of E & O insurance that 
truly protects the public, the owner, and the engineer as you can get it for 
a multi-year term.  There is no fear that the company may not offer E & O 
insurance or cancel your policy in succeeding years and leave you uncovered.

I think that when you get the premiums for project insurance, and show your 
client how much additional it will cost him/her for this coverage, your 
client may very well rethink requiring E & O insurance.

A. Roger Turk, P.E.(Structural)
Tucson, Arizona