Had a close call last month on a FirstEnergy audit where I missed a demand ratchet clause that cost the client $18K. Fortunately my E&O picked it up but the deductible was painful. Currently paying $2500 deductible on a $1M policy through CNA. What are you folks carrying and how much is your deductible eating into smaller claims?
E&O Claims - What's Your Deductible?
Jim that's rough but glad you had coverage. I'm with Hartford for $2M limits, $5K deductible. The higher deductible keeps my premium reasonable at about $3200/year. For anything under $10K I usually just eat it rather than file a claim and risk my rates going up.
Terry's right about the rate impact. I filed two small claims in 2010 with Travelers and they non-renewed me. Now with Zurich at $1M/$1K deductible paying almost $4K annually. The underwriters are getting pickier about utility auditing - some won't even write new business in this space.
Derek that's scary about Travelers. I've been with them for 3 years with no claims. Maybe I should start shopping around before my renewal. Anyone tried the specialty programs through AAUBA? I heard they're working on a group program but nothing concrete yet.
The AAUBA group program is still in development from what I hear. I'm currently with Liberty Mutual at $1.5M coverage with $2K deductible. Premium is about $2800 but they've been good about claims. Had one last year on an Alabama Power audit where I miscalculated coincident demand - they paid the $12K without hassle.
Brenda which Liberty Mutual agent are you using? I'm in Arizona and having trouble finding someone who understands utility auditing. Most agents want to lump me in with general consulting which doesn't give proper coverage. APS has some unique tariff structures that need specialized knowledge.
Sarah I'll PM you my agent's contact info. He specializes in professional services and actually understands what we do. The key is finding underwriters who recognize that utility auditing isn't the same as general business consulting. We need coverage for calculation errors, missed deadlines, and tariff interpretation mistakes.
Vince is absolutely right about specialized coverage. I learned this the hard way when my old policy had an exclusion for 'rate analysis' that would have left me exposed on most of my Georgia Power audits. Now with Chubb at $2M limits specifically written for utility consulting. More expensive at $4500/year but worth the peace of mind.