This is a great assessment of the problem. I have a very low opinion of the insurance industry. Some of the companies can be a real pain in the ass. They want you to be certain to pay your premiums on time....but don't dare put in a claim. I just cancelled my auto insurance this week for that reason, and picked up the same coverage with their competitor for $100 less in premium each month.

Health insurance (My favorite subject of debate. Anyone want to get into it?) is another example of price gouging of the insureds. Could never understand why the opposition to a government option coexisting with the free choice to buy insurance alternately. The British have had it since 1948. Amazing how the majority of them choose their National Health Service over the option of buying private health insurance.

You are quite correct in questioning the contract with your client. On the one hand they require e&o insurance, but on the other hand make you uninsurable with the indemnification clause.You may want to explain this to them. You also have to consider the financial limitations of your policy. If the claim is insurable any amount in excess of the limits of the policy becomes your problem.