Alan,
My work takes me across many disciplines (mining, engineering, groundwater and
environmental). From my experience, most large mining or
engineering/environmental companies require just General Comprehensive
Liability (from US$1M to US$2M -- I carry the US$2M) and Comprehensive
Automobile Liability (generally US$1M, but I was just asked by a large
engineering company to increase that to US$2M). There are a few
engineering/environmental companies I've dealt with that requested
Professional Liability but I told them that I don't carry it however I would
be happy for them to help purchase it (i.e., it would be included in the cost
of the work). My understanding is that Professional Liability insurance
starts at around US$5K per year and increases in out-years because of
increasing liabilities. Since most engineering/environmental jobs are
relatively small, companies that originally requested that I carry
Professional Liability balked at the cost and in effect just included me
within their policy (e.g., the blanket type coverage that Joe talks about).
If you are lucky enough to get 6 months or greater of work from one
engineering/environmental company per year then it might be worth
investigating the purchase of Professional Liability insurance. However, if
most of the jobs are for periods of weeks or perhaps a month then companies
may be discouraged by the higher amount of your bid to cover the insurance.
It appears that society is becoming much more litigiousness, to the extent
that I was requested to supply Contractor's Pollution Liability insurance
(isn't that crazy for non-intrusive geophysics?) for a recent GPR survey (cost
of such a policy is around US$15K per year and of course I told them I
wouldn't purchase it for just one small job and I was still able to get the
work).
Jim Hasbrouck
Hasbrouck Geophysics, Inc.
Montrose, Colorado
"Inman, Joe" wrote:
> Alan,
>
> At Kennecott Exploration we expect our consultants to have a General
> Comprehensive Liability policy and automobile liability, but we do not
> expect any kink of professional liability or Errors & Omissions
> coverage. In fact even the General Liability can be difficult for some
> and we are thinking of providing a blanket coverage for consultants when
> they are working for us; however, this issue has not been resolved at
> this time.
>
> I also know that Professional Liability is a bigger issue in the
> environmental and geotechnical fields, but not in exploration.
>
> Joe Inman
> Kennecott Exploration
>
> -----Original Message-----
> From: Alan Reid [mailto:[EMAIL PROTECTED]]
> Sent: Monday, July 05, 1999 4:20 AM
> To: grvmag-l, Majordomo; [EMAIL PROTECTED];
> [EMAIL PROTECTED]
> Subject: [SEGMIN]: Professional Indemnity Insurance
>
> Folks,
>
> Pardon the dumb question, but I'm new to one-man geophysical
> consulting.
>
> 1. Do all of you who work as consultants carry Professional
> Indemnity Insurance?
> 2. or do you rely on "best endeavours" clauses in contracts,
> thereby avoiding professional liability?
> 3. Does anyone know of any of the professional geophysical
> bodies which offers a good deal? I believe there's one from
> the Gelogical Society of London, but I carry enough
> memberships already. I can't find anyone who specializes in
> geophysicists.
> 4. Any helpful comments? I've had some crazy quotes from
> brokers.
> 5. I guess this is aimed the other way. Do any of you who
> use consultants expect them to carry any particular level of
> professional indemnity insurance? And in what conditions
> might it be invoked?
>
> Thanks
> --
> Alan B Reid PhD
> Reid Geophysics
> 49 Carr Bridge Drive
> Leeds LS16 7LB
> UK
>
> Phone: +(44)-113-261-0252
> Fax: +(44)-113-293-0062
> e-mail: [EMAIL PROTECTED]
> website: www.reidgeophys.freeserve.co.uk
>
> _______________________________________________________
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