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LOL: was Re: Survey, final result (Corrected)

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

Not exactly,  it can mean to obtain money, property etc by means of
intimidation or undue power but either way,  my sarcasm was not conveyed,
so pardon me. (Recall the classic comedy sketch where the extortee
*negotiates* a lesser demand from the extorter, but thats another story)


>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.

Agreed. The LOL for which *no* premium discount is given is the maximum
limit of the policy. It is the lure of lower premiums for LOL's less than
your policy limits that does not sit well some clients.  I have a LOL
clause on my proposals. If a client will not except any amount of LOL, then
I would consider not taking the job. If other consultants on the project
have an LOL then I would expect to have one as well. My remark was meant to
imply that the insurance company may be benefiting from a LOL less than
policy limits more than the insured, assuming that the concept of LOL holds
up in court. Who knows what the status of LOL will be in the future. Why do
some insurance companies have premium reductions and others do not? 
>
>Lew Midlam, PE
>http://www.lcm.com
>
>==================
>
>-----Original Message-----
>From: Jeff Smith <smthengr(--nospam--at)sirius.com>
>To: seaoc(--nospam--at)seaoc.org <seaoc(--nospam--at)seaoc.org>
>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
>client
>>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?
>>
>>
>
>
>
>
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