Here is (are) some data. I have had E&O insurance since 1997 through the ACS/AIChE program administered by a broker in Washington DC. I am a chemical engineer/statistician and a member of the American Institute of Chemical Engineers, which qualifies me for the program. (I am also a member of ASA and ASQ, but I know of no such insurance programs through these societies.) The policy is with Lloyd's of London for a liability limit of $250,000 with a deductible of $10,000. The premium is $1,300 per year. Over my 18 years of consulting the coverage has become increasingly expensive (started with 1 million coverage at about the same premium.) Fortunately, I have never come close to a claim, but the possibility is always there in this litigious society that we live in. My consulting deals mainly with quality control and manufacturing problems in the pharmaceutical, chemical process, and consumer products industries, and some adveritising claim support for the last industry.
Another question is what to do when you retire from consulting. I have been told by the broker that the policy must be continued indefinitely for coverage past retirement, but my attorney has told me that there is a statue of limitations for such claims. I am negotiating with the broker for a lower cost solution to this situation and will keep you posted.
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Thomas Murphy
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