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E and O (Liability) Insurance

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David,

The *least expensive* E&O policy that I have seen is ASCE's.  But, get a 
sample policy (from any company) first and read it *carefully* to see if it 
provides the protection that you think you are getting.

Things to look out for:

   - When does the company start to defend the claim?

   - What happens if the company wants to settle a claim and you don't agree?

   - What happens if you are not satisfied with the attorney used by the 
company and want to use a lawyer of *your* choice?  (Who is the client of the 
lawyer selected by the company?)

   - Are you covered if your client and/or consultants do not carry E&O?

   - Most E&O policies are "claims made" policies, i.e., the policy must be 
in effect when the claim is made, not when the work is performed.  Some 
companies also require that the policy has to be in effect both when the work 
is performed and maintained continuously thru when the claim is made.

   - Look for "sweetheart" premiums the first three years, then watch the 
premium double.

   - Will the company pay a claim before *you* pay the deductible?

   - What happens if the company stops offering E&O coverage?

Hope this helps.

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

David Hall wrote:

>>I am interested in obtaining E&O insurance for a sole proprietor as
inexpensive as possible.  Any recommendations.

I know this subject has come up before so a quick response would be
appreciated.<<

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