I'm just starting out and mostly doing residential audits for Dominion Virginia Power customers. The potential savings are usually under $2,000 per year so the risk seems minimal. Do I really need E&O insurance for this type of work? The premiums seem expensive relative to my current revenue. What do you veterans think?
Do I need E&O for small residential audits?
Janet, I understand the cost concern when you're starting out, but you absolutely need E&O coverage. Even residential work can go wrong - missed rate schedule changes, calculation errors, misunderstanding tariff provisions. One claim could wipe out years of profits. The AAUBA group policy might be your most affordable option.
Randy's right Janet. I thought the same way when I started with small DTE customers in Michigan. Then I had a customer claim I missed a time-of-use rate that would have saved them $3,500 annually. Even though I was technically correct, the legal fees to defend myself cost more than two years of premiums. Get the coverage.
Thanks Randy and Tina. You've convinced me. I'll look into the AAUBA group policy this week. Better safe than sorry, especially as I'm hoping to grow into commercial work eventually. The peace of mind alone is probably worth the premium cost.