Just started my utility auditing practice after 10 years working for Duke Energy. Getting conflicting advice about E&O insurance requirements. Some brokers saying $500K is fine for a startup, others pushing $2M minimum. I'll mainly be working on small commercial accounts - Duke Progress Schedule SGS and Schedule LGS. What coverage limits make sense starting out?
First-time E&O shopping - help!
Elisa, I'd go with at least $1M coverage even starting out. SRP and APS accounts here in Arizona can have significant exposure - one mistake on a Schedule E-32 large general service account could easily hit six figures. The premium difference between $500K and $1M is usually only a few hundred dollars annually.
I agree with Christie on the $1M minimum. Even small commercial accounts can have significant exposure if you miss something on demand billing or power factor charges. MLGW Schedule GSA accounts might seem simple but I've seen $20K+ errors on relatively small customers. Better to have the coverage and not need it.
Check with the Texas Association of Utility Auditors - they have a group policy arrangement that might save you money starting out. Oncor transmission charges and ERCOT settlements can create complex liability scenarios even on smaller accounts. I'd also make sure your policy covers 'failure to discover' claims, not just errors in work performed.