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Anyone have any recommendations on a E&O insurance provider, preferably in California? Or someone who I should stay away from? Would be for designing residential homes primarily, with some light commercial.

I've had good success using CNA here in MI. Not sure who in CA would carry that. there site cna.com you can find a local agent.

John is the best.....

John Feeney
IOA Insurance Services
1460B O’Brien Drive
Menlo Park, CA 94025

Business: (925) 416-7862
Mobile: (630) 235-1570

Email: john.feeney@ioausa.com

If you have the coverage, good chance you will eventually get sued. If you don't have to have the coverage and don't then get it, no attorney will come after you. They are not interested in selling off your computers as a part of getting money for their claim. If CA requires the insurance, then there's no option.

The other thing to consider is that E & O insurance is a "claims made" policy. That means that you have to have the insurance at the time the claim is made. Most clients don't understand this. They think they can make a claim against you a couple of years from now when the roof leaks or someone trips and falls on a tree root. Their claim is only valid if you still have the coverage. Most claims don't arise during the time you are finishing up drawings for a project or during construction, especially with houses. It is some years later.....when you might have dropped the coverage and there is no insurance money for the attorney to get at.

I am licensed in 11 states (it used to be 22 states but the recession killed that) and haven't had E & O coverage in the last 32 of my 37 years in practice. I have eaten one invoice for $1,000 because of a law suit threat due to a contractor's error and the attorney wanted money from everyone. No other claims. Without easy insurance money to go after, an attorney will not waste his/her time going through the suit process, unless it is for wrongful death or serious injury and they can prove the design was at fault. For residential and small commercial work, it is usually not going to be the design problem. With a policy having a $5k deductible (or higher), you will be paying out of pocket for small suits, anyway.

David Porter wrote:If you have the coverage, good chance you will eventually get sued. If you don't have to have the coverage and don't then get it, no attorney will come after you. They are not interested in selling off your computers as a part of getting money for their claim. If CA requires the insurance, then there's no option.

The other thing to consider is that E & O insurance is a "claims made" policy. That means that you have to have the insurance at the time the claim is made. Most clients don't understand this. They think they can make a claim against you a couple of years from now when the roof leaks or someone trips and falls on a tree root. Their claim is only valid if you still have the coverage. Most claims don't arise during the time you are finishing up drawings for a project or during construction, especially with houses. It is some years later.....when you might have dropped the coverage and there is no insurance money for the attorney to get at.

I am licensed in 11 states (it used to be 22 states but the recession killed that) and haven't had E & O coverage in the last 32 of my 37 years in practice. I have eaten one invoice for $1,000 because of a law suit threat due to a contractor's error and the attorney wanted money from everyone. No other claims. Without easy insurance money to go after, an attorney will not waste his/her time going through the suit process, unless it is for wrongful death or serious injury and they can prove the design was at fault. For residential and small commercial work, it is usually not going to be the design problem. With a policy having a $5k deductible (or higher), you will be paying out of pocket for small suits, anyway.

Good points. I am looking at starting my own residential design service with no employees and we just finished setting up a family trust so our family assets are protected that way so you might be right for my case. I am confident in my design skills so I am not too worried about my work going out and figure a strong contact should suffice most issues. Just getting things ready for my lawyer to mull over when the time comes. Gotta get my license wrapped up first any how.

I've been really happy going through Hall and Company in Washington (https://www.hallandcompany.com/) - they've been able to get the best coverage for the least amount for me for almost 10 years now. The biggest thing you need to have is a Limitation of Liability clause in your contract, and make sure that your contract has been reviewed by the attorneys at your insurer BEFORE you use it. Obviously tell them that I referred you!