I'm shopping for E&O coverage and getting quotes that range from $1,800 to $4,500 annually for $1M coverage. The policies all seem similar but the prices are all over the map. Anyone have experience with carriers who understand the utility consulting business? Looking for someone who won't freak out when I explain what demand charges are. PSO here in Tulsa is requiring proof of coverage before they'll approve my vendor application.
Insurance carrier recommendations for utility consultants?
Rick, I've had good luck with Professional Liability Insurance Agency. They specialize in technical consultants and understood my business immediately. Running about $2,400/year for $1M/$2M coverage with a $2,500 deductible. They didn't balk when I explained interval data analysis and rate optimization work. RG&E approved their certificate without question.
I use CAMICO for my E&O coverage. Originally designed for CPAs but they cover energy consultants too. About $2,200/year for similar limits. They have specific language covering utility tariff analysis and energy procurement advice. MLGW accepted their policy format without any modifications. The claims department actually knows what a ratchet clause is, which was refreshing.
Avoid general business insurance brokers if possible. I wasted three months with a guy who kept asking if I was doing electrical work. Finally found a specialist through the National Society of Professional Engineers. They connected me with an agent who actually understood professional services. Duke Energy in Charlotte approved the policy same day.
Thanks for the recommendations everyone. Tom, can you share contact info for Professional Liability Insurance Agency? My current quote from State Farm is $4,200 and they want to exclude anything related to energy trading or demand response programs. That would eliminate half my business.
Rick, I'll PM you the contact info. One thing to watch out for - some carriers exclude work on deregulated markets entirely. If you're doing any retail energy consulting, make sure that's covered. Avista here in Washington doesn't care, but I know Texas consultants have issues with that exclusion.