# Insurance



## scottiesei (Jan 20, 2007)

I know there have been a few threads about insurance but I thought that I would start one for my own experience in attempt to help others.

As some of you know I have my own company. Up until a few days ago, my engineering was "sub-contracted". Now that I have my license, no more. I was faced with having to get the company insured, professionally. Here are a few things that I learned.

First, professional liability and errors and omissions insurance are one in the same. In Florida, rates vary from 8%-15% of the company’s gross receipts. Here is what sucks about that, engineering only accounts for %25-30 of my gross. We do quite a bit of drafting and other non-professional functions. Of course the applications suck, they are 12 to 14 pages long. Questions like what are you 5 largest projects, construction costs, design fees, construction time. Some company's wanted the largest 10 and the last 5 as well as the current 5 largest. Who keeps track of that?!? Anyways, 3 agents and two underwriters later, I was able to get a reasonable policy (1mill/2mill 5g deductible) for under $7k/year.

And to personal liability, make sure that the O&amp;E policy covers you, as the engineer. My policy covers my company and me as the design professional. I have heard of policies that are not written that way for whatever reason. I.E: some one could sue the firm, then you. That apparently is only an issue if you work for someone else.

As I said in the topic description, these are my experiences and opinions. I am not a lawyer or insurance agent. This was just such a pain in the ass I figured I'd post what I learned to help others. Good luck!


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## RleonPE (Jan 20, 2007)

$7k/yr, guess no more side work for me then.


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## tmckeon_PE (Jan 20, 2007)

Think I will open at least two companies (cheaper to spend an extra $70). One to do engineering and one to do the rest of the stuff (civil design, drafting, etc.). Sounds like that will cut down on the insurance costs.

Please let me know if I am mistaken.

Thanks.


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## scottiesei (Jan 21, 2007)

U got the idea. Either that or try to get ahold of the underwriter and beg. Much easier the way u stated though.


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