Looking at E&O policies and Hartford keeps coming up in my searches. I'm expanding my practice here in Corpus Christi and want to make sure I'm properly covered. Currently doing about 150 audits annually with average recovery around $12K per client. Anyone have experience with Hartford's professional liability coverage? What are their claim response times like? My biggest concern is getting hung out to dry if a utility like CPS Energy or AEP Texas comes after me for a disputed refund.
E&O Insurance Claims - Anyone dealt with Hartford?
I've had Hartford E&O for about 3 years now, no claims thankfully. Their underwriting process was pretty thorough - they wanted to see sample audit reports, client contracts, methodology documentation. Premium runs about $2800/year for $1M coverage with $5K deductible. The peace of mind is worth it when you're dealing with FirstEnergy here in Ohio - those guys will challenge everything down to the penny.
Hartford turned me down initially because I had a small claim with my previous carrier about 5 years ago. Nothing major - just a client who disputed our findings on their MLGW demand charge analysis. Ended up going with CNA through my agent and they've been solid. About $3200/year but they cover up to $2M aggregate. Worth shopping around if Hartford gives you any pushback.
Key thing with any E&O carrier is making sure they understand our business model. A lot of them lump us in with general consultants and don't get the contingency fee structure. Hartford was good about that - they actually have some experience with utility auditors. Make sure your policy covers both errors in analysis AND failure to identify savings opportunities. That second part bit me early in my career.
NV Energy up here can be particularly aggressive if they think you've made an error on a large commercial account. I carry $3M through Travelers specifically because of a case where they disputed a $180K refund claim on Schedule 19 industrial rate corrections. Even though we were right, the legal costs to defend it were substantial. The extra premium for higher limits is worth it in this business.
Thanks for all the input everyone. Sounds like Hartford is legitimate but maybe not the only game in town. @NV_Cliff - that's exactly the kind of scenario I'm worried about. CPS Energy down here has been pretty reasonable but you never know when that could change. Going to get quotes from Hartford, CNA, and Travelers before making a decision.
One more thing to consider - make sure your policy has proper coverage for regulatory violations. I had a situation where PPL questioned whether my Rate GS analysis complied with Pennsylvania PUC reporting requirements. Wasn't technically an error but still triggered a claim. Some cheaper policies exclude regulatory issues entirely.
Good point about regulatory coverage @Sylvia. That's not something I would have thought to specifically ask about. This thread has been incredibly helpful - probably saved me from making some expensive mistakes down the road.