Has anyone heard updates on the AAUBA group E&O program that's been talked about for years? My CPS Energy contract renewal is coming up and they're requiring higher limits. Individual coverage is getting expensive and I'm hoping the group program materializes soon. Anyone have inside info on timing or carriers being considered?
AAUBA Group Program Update?
Angela I've been in discussions with the board about this. We've had preliminary talks with three carriers - Travelers, Chubb, and AIG. The challenge is getting enough members committed to make the numbers work for group pricing. We need at least 50 participants to get meaningful discounts. Current thinking is to launch in Q2 2025 if we can hit minimum participation.
Randy that's great news on the timeline! What kind of savings are we looking at? My current Berkley policy is running $5200/year for $2M coverage and I'd love to see that come down. Also curious about whether the group program would have standardized coverage terms or if we'd still need to negotiate individual exclusions.
Chuck I'm definitely interested in joining a group program. Working with PNM and El Paso Electric, my individual coverage is getting pricey too. Would the program be open to all AAUBA members or would there be experience/revenue minimums? Some group programs exclude smaller practitioners.
Ruben current plan is open to all members in good standing, no revenue minimums. We want this to benefit everyone, not just the big shops. Preliminary quotes suggest 15-25% savings versus individual policies, plus standardized coverage specifically written for utility auditing. No more fighting about whether 'rate analysis' is covered.
Randy will there be different coverage levels available? Some of my MLGW work requires $5M limits while smaller audits only need $1M. Flexibility in coverage amounts would be important for the group program to work for different sized practices.
Sandra absolutely - we're looking at $1M, $2M, and $5M options with varying deductibles. The goal is flexibility while maintaining group buying power. I'll be sending out a survey soon to gauge interest and coverage preferences. Need to show carriers there's real demand before they'll commit to group pricing.
This sounds promising Randy. Will the group program include cyber liability as well? Met-Ed and PPL are both requiring cyber coverage now and bundling it with E&O would be convenient. Also wondering about international coverage for members who work with utilities in Canada or Mexico.
Sylvia brings up a good point about international coverage. I do some work with CFE in Mexico and my current carrier excludes foreign operations. If the group program could include broader geographic coverage that would be a huge selling point for those of us working cross-border utility projects.
Good questions on cyber and international coverage. Cyber liability is definitely on the table - most carriers prefer to bundle it anyway. International coverage is trickier but we're exploring options for Canada at minimum. Mexico might require separate coverage due to different legal systems and claim procedures.
Randy count me in for the survey. Working with APS and SRP in Arizona, my current Chubb policy is getting expensive. A group program with standardized utility auditing coverage could be exactly what we need. When should we expect the survey to go out?
Patricia survey should go out by end of November. Need to finalize the questions with our insurance consultant first. Looking for information on current coverage levels, premiums, claims history, and wish list items for group coverage. The more responses we get, the better leverage we'll have with carriers.
This is exciting news Randy. ML&P contracts have been requiring higher limits and my individual policy costs are becoming a real burden. A group program could level the playing field for smaller practices competing against larger firms with better insurance rates. Looking forward to the survey.
Patty makes a great point about competitive advantages. DTE and Consumers Energy both look at insurance coverage and limits when selecting auditors. If the group program can get us better rates AND stronger coverage, it's a win-win for AAUBA members. Really hope this comes together in 2025.