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Re: Survey, final result (Corrected)

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You're confusing 'negotiation' with 'extortion'.  Extortion requires a
threat of physical or bodily harm.

The relationship between LOL and insurance premiums is of little consequence
to building owners or to engineers, but the relationship of 'risk to
rewards' is of importance to the engineers and is understandable by most
building owners.  For example, an owner or developer will take financial and
liability risks to build a building in the hopes to rent it out over 20
years and make a million dollars doing so.  Is it realistic for an engineer
to take the same risks in order to make a couple of hundred dollars in
profit?  When approached in this manner, most owners/developers, etc that
I've worked with are inclined to accept the engineer's and architect's
request for a LOL.

Lew Midlam, PE


-----Original Message-----
From: Jeff Smith <smthengr(--nospam--at)>
To: seaoc(--nospam--at) <seaoc(--nospam--at)>
Date: Thursday, April 30, 1998 11:13 AM
Subject: Re: Survey, final result (Corrected)

>In addition to the premium reductions for completing education programs,
>they also give premium discounts for agreed contract ranges of limit of
>liability below your policy limits.  It is a bit hard to explain to a
>that if they except a low contract LOL, your premiums go down, however
>hardly enough to justify lowering your fee an amount that would be
>attractive to the client. This however IMO could be construed as extortion.
>Out of curiosity, how many times to clients question/challenge your limits
>of liability?