Got the dreaded non-renewal notice from Travelers yesterday. Two claims in 18 months - one for $25K on a DTE audit where I missed a power factor penalty, another for $8K on a Consumers Energy demand calculation error. Policy expires February 15th and I'm scrambling to find new coverage. Anyone have recent success with carriers who will take utility auditors with claims history?
Just Got Non-Renewed - Need Recommendations ASAP
Tina sorry to hear about the non-renewal. That's becoming more common unfortunately. I'd suggest trying Chubb, AIG, or Berkley - they tend to be more understanding of our specialized risks. Make sure you get quotes from brokers who specialize in professional liability, not general business insurance agents. The application process will be more thorough but they understand our exposure better.
Randy's right about the specialist brokers. I went through a similar situation three years ago after two Duke Energy claims. Ended up with Berkley through a broker in Chicago who only does professional liability. Premium was higher but they actually understood what caused my claims instead of just seeing me as high risk.
Chuck can you share that broker's contact info? I'm not in immediate trouble but my renewal is coming up in March and I want to have options. Oncor and ERCOT audits are getting more complex and I want to make sure I have proper coverage before taking on larger contracts.
Tina what were the specific issues on your claims? Sometimes carriers will reconsider if you can show you've implemented additional quality control procedures. I had success with that approach after a PPL audit went sideways - showed them my new checklist system and they agreed to renewal with a higher deductible.
Sylvia the DTE claim was on a large manufacturing facility where I miscalculated their demand charges under the D1 rate schedule. The client's bill was wrong for 14 months before DTE caught it. The Consumers claim was simpler - just missed a seasonal adjustment factor on their GS rate. Both were honestly calculation errors that better software might have caught.
Those sound like exactly the kind of errors that good E&O should cover without blaming the auditor. Have you looked into the NEMA group program? I know they've been working with carriers to develop utility auditor-specific policies. Might be worth a call to their insurance department.
Randy what's NEMA's involvement in E&O coverage? I thought they were just equipment manufacturers. If they're putting together a group program for auditors that could be huge. The individual market is getting tougher every year with carriers either non-renewing or pricing us out.
Ruben sorry I meant NAESCO - National Association of Energy Service Companies. They have an insurance program for energy professionals. NEMA is indeed the equipment folks. Getting my acronyms mixed up! But NAESCO might be worth checking out for group coverage options.
Thanks everyone for the suggestions. Got quotes from three brokers Randy recommended and one looks promising with AIG. Premium is about 40% higher than Travelers but they seem to understand our business better. The application was thorough but fair - they actually asked intelligent questions about utility tariff work.
Tina glad you found coverage! That 40% increase is painful but not unusual after claims. I went through something similar when I had issues with MLGW audits a few years back. The key is rebuilding your claims-free history - after three clean years most carriers will start competing for your business again and rates should improve.