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RE: Liability and the uninsured

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Bob –


I’ve already taken the action you’ve suggested. It’s unfortunate. My clients see the cost of E&O insurance as an unnecessary expense or at best, an optional expense. It’s a little aggravating, especially when I know their premiums would be roughly half of mine given equal billings.


T. William (Bill) Allen, S.E.


Consulting Structural Engineers
V (949) 248-8588 F(949) 209-2509

-----Original Message-----
From: Robert Freeman [mailto:robert.freeman(--nospam--at)]
Sent: Friday, March 24, 2006 12:14 PM
To: seaint(--nospam--at)
Subject: Liability and the uninsured


Hi Bill:


You may want to consider avoiding that situation.


I have worked as an employee of a professional who, for a time, carried no professional liability insurance, and who expected that a loss or claim would not touch them.  They were, in effect, adding to the liability (and premiums) of the insureds they worked with.


For the professionals you work with on a regular basis, you may want to begin a serious campaign to convince them to insure.  I'm sounding like an insurance agent. (I'm not)


One thought I had was about a possible loss situation in which a client or unrelated person was injured, perhaps severely.  I have been very blessed that this has not happened in my 34 years.  Would I, if uninsured, feel comfortable knowing there would be no relief for them if I were found to be liable?


Another thought was,  clients (who ultimately pay the premiums for our liability insurance) do not complain about the fees for insurance. 


I had my own professional practice for a time in Arizona.  Competition was stiff, fees were low, but I decided to carry E & O insurance.  


The consultants I hired at the time helped me in several ways.  In addition to advice about insurance, for instance, they convinced me to raise my billing rates into line with theirs, which helped them and it helped me. 


I'd go talk to your uninsured professional consultants (clients), today.  They may be operating under a false impression.


With Joy and Hope,

Bob Freeman, Architect, Structural designer

Integrated Design Services, Inc. 

(949) 387-8500 x115