I've been doing this work for over 30 years and my insurance company just informed me they're dropping professional liability coverage for utility auditors due to 'increased risk exposure.' Apparently there have been several large claims nationally involving disputed audit findings. My current policy expires next month and I'm scrambling to find replacement coverage. What carriers are other folks using? The quotes I'm getting are 3-4 times what I was paying with Eversource territory work included.
Professional liability insurance for utility auditors - what coverage do you carry?
Vince, I've been seeing the same trend. Several auditors here in MLGW territory have had their policies non-renewed or seen massive premium increases. I switched to a specialty carrier that focuses on technical professionals - higher premiums but better coverage for our specific risks. The key is finding insurers who actually understand what we do rather than treating us like generic consultants.
I'm with a company called Professional Risk Specialists - they write coverage specifically for energy auditors and engineers. Premium isn't cheap but they don't freak out about utility work like the general carriers do. They actually had someone on staff who understood demand billing and power factor corrections when I was explaining my services. Worth checking out if you're having trouble with mainstream insurers.
The insurance situation has gotten crazy up here in Alaska too. Chugach Electric had a case where an auditor's error cost a customer $85,000 in back charges, and now everyone's running scared. I'm carrying $2 million in coverage now - probably overkill but the peace of mind is worth it. Some of these utility billing errors can get into serious money fast.
Darren's right about the claim sizes. I had a close call with NorthWestern Energy where my analysis saved a client $150,000 but if I'd been wrong, the exposure could have been massive. The insurance companies are finally waking up to how much money flows through utility bills and adjusting their risk models accordingly. Unfortunately, that means higher premiums for all of us.
Has anyone looked into group coverage through CUBA or other professional associations? Seems like we might get better rates and coverage through group purchasing power. Rocky Mountain Power territory work is getting more complex with all the new rate structures, and the liability exposure keeps growing. We need insurance that understands our business model.
Brenda, I tried going through CUBA for group coverage but they don't have anything arranged yet. OG&E has been pushing for higher professional standards and certification requirements, which might actually help with insurance if we can show we're a regulated, professional industry rather than just independent contractors. The more professional credibility we have, the better our insurance options should be.
I ended up going with a Lloyd's of London syndicate that specializes in technical E&O coverage. Premium is steep but the coverage is comprehensive and they don't exclude utility work. PNM actually requires their approved auditors to carry specific coverage levels now, so having good insurance is becoming a competitive necessity, not just protection.
Thanks for all the suggestions, everyone. Sounds like specialty carriers are the way to go even if they cost more. The general business insurers just don't understand our risk profile. I'd rather pay higher premiums for coverage that actually works than save money on a policy that won't pay claims when I need it. This business has enough risks without being underinsured.