On Sep 20, 2011, at 8:15 AM, Jack Morgan wrote: > Randy, > > On 09/20/2011 08:10 AM, Randy Carpenter wrote: >> >> ----- Original Message ----- >>> On Tue, 20 Sep 2011 07:59:00 EDT, harbor235 said: >>>> Curious if anyone out there is acting as an independent contractor, >>>> consultant, or small business, >>>> if so do you use professional liability insurance? >>> >>> I don't consult myself, but is *anybody* crazy enough to do >>> consulting >>> in the litigation-crazy US without carrying errors-and-omissions >>> insurance? >> >> The reality is that with the mega-insurance companies able to set whatever >> crazy premiums they feel like, and raise them every other month, the cost of >> being fully insured is sometimes more than what you can charge as a >> consultant. > > This is just not true. Insurance companies are regulated by State > Insurance boards. If an insurance company wants to raise rates, they > have to submit a proposal to the their state insurance board. They can > only raise rates for a "class" of customers. For example, all customers > aged 50 - 62. >
This is generally NOT true for E&O and Professional liability insurance. For the most part, that goes largely unregulated. The state insurance boards tend to focus on consumer-oriented forms of insurance (auto, home, life). Owen
