$1M Professional Liability (E&O) Insurance for Accident Reconstructionists

For accident reconstructionists whose contract asks for $1M, Professional Liability (E&O) pays covered claims that your reports or opinions caused a client a financial loss, up to $1M.

What does a $1M requirement mean for accident reconstructionists?

Professional Liability (E&O, short for Errors and Omissions) covers claims that your work or advice caused a client a financial loss. For you, that means your analysis, reports, measurements or opinions. A typical clause looks like this:

• Per claim: the most the policy pays for any one claim. Here, $1M.
• Aggregate: the most the policy pays for all claims in one policy year. $1M/$1M means the same amount for both. $1M/$2M allows up to $2M across several claims, but never more than $1M for one.
• Matching the wording: a $1M/$1M policy does not meet a clause that asks for a $2M aggregate. A $1M/$2M policy usually meets a $1M/$1M clause too, if the rest of the clause is met. Your contract's wording controls.
• Claims-made: the policy covers claims made and reported while it is active, for work done on or after the retroactive date (the earliest work date the policy covers). That is why clauses ask you to keep coverage after a case ends. See Professional Liability (E&O) limits explained.

Who asks accident reconstructionists for $1M?

Insurance requirements may come from:

• Insurers, claims departments and third-party administrators (outside firms that handle claims for insurers).
• Manufacturers, construction, energy and fleet companies reviewing a crash.
• Government agencies, such as police departments and transportation offices.
• Law firms that retain you as a consulting or testifying expert.

Your contract sets the limit you need. Serious injury or large loss cases can lead clients to ask for $2M instead of $1M, which doubles the most one claim can pay. See $2M Professional Liability (E&O) for accident reconstructionists.

How is $1M built?

At $1M, the limit is usually one primary policy (the policy that pays first), with no excess layers (extra policies stacked above it). Your form depends on your firm. Firms with licensed engineers may use A&E Professional Liability (Architects and Engineers), built for design and engineering work. Some forensic and expert-witness practices use Miscellaneous Professional Liability, a general form for consulting. Ask which form the carrier will use.

A commercial umbrella almost never covers Professional Liability (see Does a commercial umbrella cover Professional Liability?). Clients usually cannot be added as an additional insured (a party who gets coverage under your policy) on this coverage. Some forms may allow it in limited cases, so ask what the policy wording says. Many clients accept a certificate of insurance (a one-page summary of your coverage), but your contract sets what it must show.

What will underwriters ask for?

An underwriter is the person at the insurer who decides whether to offer coverage and on what terms. They usually ask about:

• Your licenses, training and certifications.
• Your work split: consulting only, expert testimony, or both, and plaintiff versus defense work.
• Your methods and tools, such as scene measurement, vehicle data downloads and drones.
• How you handle and store evidence, files and data.
• Whether your written contracts promise results or deadlines, which a policy may not cover.
• Prior claims, possible claims and your retroactive date.

What affects the cost?

• Revenue and case volume. More cases mean more chances for a claim.
• Type of cases. Fatal crashes, commercial trucks and product cases usually carry larger possible losses.
• Claims history and retroactive date. Prior claims can raise the price. Full prior acts coverage (coverage for work done before the policy started) often adds cost.
• Aggregate, retention and defense terms. $1M/$2M usually costs more than $1M/$1M. A higher retention (what you pay per claim before the policy pays) usually lowers the premium. Defense outside the limit often adds cost.

Frequently asked questions

Can a client sue an accident reconstructionist over a report or testimony?

Yes, it can happen. Whether a claim can proceed depends on the facts and the law that applies. Hypothetical examples: a client says a speed estimate was wrong and the case was lost; a law firm says a late report caused a missed deadline.

Is $1M/$1M enough if my contract says $1M/$2M or $2M?

Usually not. A $1M/$1M policy generally does not meet a $1M/$2M clause or a $2M clause, so request new quotes at the limits your contract requires. Morrow can ask carriers to keep your retroactive date and prior acts coverage where the market allows. The new policy often needs to be in force by the date the contract requires. Do not cancel your current policy until the new one is in force, so you do not create a gap in coverage. Report anything that could become a claim to your current carrier before that policy ends.

What happens to my coverage if I close my firm or cancel my policy?

A claim first made after the policy ends is generally not covered, even for old cases. An extended reporting period (a "tail") gives you extra time to report claims about past work and usually must be bought soon after the policy ends.

This article is general information, not legal advice or a coverage determination. Coverage depends on the actual policy wording, carrier underwriting and your contract terms.