Insurance

[Santiagj]

I have some questions about liability insurance. I didn't know where to stick this but I figured since there was partnership talk in this room that this might fit in.

I was approached about doing some drawing/calculation review and stamping on the side. Mainly simple structural stuff for residential buildings. I am interested in doing this but am wary about the insurance implications. I didn't want to go down this path if the cost of insurance were too high. Right now I do not have liability because I work for a Utility and am covered under the Untilty's policy. I want to get an idea for how much insurance is required and a rough idea for how much it would cost a year. I would be practicing in Maryland.

I am a member of ASCE and I know they offer insurance discounts. I wanted to get a rough order of magnitude cost to make a quick decision if this would be worth the hassle. I don't really want to do a lot of side work since I like my work/life balance right now, maybe looking at a project every couple of months.

Anyways, everyones input/advice will be greatly appreciated.

 

[kevo_55]

Santiagi,

My E&O insurance (from my company) specifically states that I can't moonlight with my seals.

You might want to read your company's E&O terms and conditions on if you could do a bit of moonlighting.

Just my :2cents:

 

[Road Guy]

I looked into ASCE's a year or so ago, had a similar offer but the lowest cost for an S-Corporation was still $3500 to $5000.

I didnt end up doing the work cause it just wasnt going to be worth it at the time after paying for insurance, one day I would like to start doing some

 

[Fluvial]

Related thread.

 

[Santiagj]

Thanks for the great info guys. Its going to be a tough decision.

 

[Road Guy]

santiagi, my quote wasnt for strucutural work, i think it would be about double that for you.

a friend of mine does a lot of strucutural work for railroads (timber bridges, etc) from time to time he needs erosion control and general roadway stuff, sad thing was after I turned down the first work 3 others came after that, ...

 

[Santiagj]

Wow. Well if the insurance is 10 grand a year I don't think I'll be doing any side jobs. I do a mix of structural and geotechnical in my day job. I figure that I would be stamping simple residential foundation designs and maybe a retaining wall here and there. Nothing to dramatic. But I also don't think I'll bring in enough work to cover that cost.

 

[wilheldp_PE]

Wow. Well if the insurance is 10 grand a year I don't think I'll be doing any side jobs. I do a mix of structural and geotechnical in my day job. I figure that I would be stamping simple residential foundation designs and maybe a retaining wall here and there. Nothing to dramatic. But I also don't think I'll bring in enough work to cover that cost.

Just charge $1000 an hour. You'll have it paid off in no time.

 

[Slugger926]

You might check with the company that does your home owner's insurance. Sometimes they can create a professional liability policy that is great for moonlighting. I checked with the state office for State Farm, then my agent, and their quote was around $350 per $1 Million for me. Note that this was for possible moonlighting and not running an engineering firm. I didn't pursue it though.

 

[Santiagj]

Nice. Thanks for the tip. I will definitely give that a shot. I would just be moonlighting as well.