This is unbelievable. My E&O carrier just non-renewed my policy because I testified in a Pennsylvania PUC rate case last month. Apparently they consider expert witness work 'too risky' even though I've been doing utility audits for six years with zero claims. Has anyone else run into this problem? I need coverage and I'm not sure where to turn.
E&O carrier dropped me after rate case testimony
Sylvia, that's ridiculous. Expert witness work should be covered under most professional liability policies. What carrier was this? Some of the smaller insurers don't understand our business and get scared by regulatory involvement. You might have better luck with a carrier that specializes in professional services.
It was Midwest Professional Liability. I thought they understood the business but apparently not. The underwriter said rate case testimony creates 'unlimited exposure' which is nonsense. I was testifying about billing errors, not challenging the utility's rates or cost recovery.
I've done expert witness work in Alabama PSC proceedings and never had coverage issues. You might want to try the AAUBA group policy - they specifically understand regulatory work. I testified against Alabama Power's demand charge methodology last year and had no problems with renewal.
Albert's right about the AAUBA policy. They know our work includes regulatory proceedings sometimes. I've been involved in several Mobile Bay Energy cases and it's never been an issue. The group policy underwriters actually have experience with utility professionals.
What exactly were you testifying about Sylvia? Sometimes the way you frame your testimony matters for insurance purposes. I try to position myself as a billing analyst rather than a rate expert when I testify. Keeps the scope narrower and reduces perceived exposure.
Warren, I was testifying about systematic billing errors in PPL Electric's Schedule GS rate calculations. Specific tariff interpretation issues, not rate design or cost allocation. But the underwriter didn't want to hear details - they just saw 'rate case' and panicked. Very frustrating.
Sylvia, I had a similar experience with a different carrier a few years ago. Ended up with much better coverage through a surplus lines insurer that actually welcomed regulatory work. Sometimes getting dropped is a blessing in disguise - you might find better terms elsewhere.
Helen's right - don't let them scare you away from expert witness work. It's often the most profitable part of our business and you provide a valuable service. Just make sure your new carrier explicitly covers regulatory testimony in writing. Duke Energy Ohio keeps me busy with rate case work and I want that protection.