Been asked to audit a large mining operation here in Boise. Idaho Power account with $2.3M annual spend. My current E&O is $1M. Should I bump it up for this engagement?
Idaho Power audit - should I increase coverage?
I always try to match coverage to potential exposure. If you miss something big on a $2.3M account, damages could exceed $1M easily. Consider temporary increase just for this project.
Mining operations are complex. Lots of demand charge structures and power factor considerations. Higher risk of errors means higher coverage makes sense.
Most carriers will let you increase coverage mid-term for specific projects. Might cost a few hundred extra but worth it for peace of mind on a big account.
Thanks everyone. Bumped to $2M for this project. Found a $180K overcharge on Schedule 19 Large Industrial rate. Client is thrilled and I can sleep at night.
Nice find Iris! Mining operations on Schedule 19 are goldmines for auditors. Pun intended.