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  1. #1
    Kevin Luce's Avatar
    Kevin Luce Guest

    Default Indiana licensing needs an improvement

    I realized that in Indiana, you have to have GL insurance even if you plan on taking a year off from doing home inspections. I think this is messed up.

    This also applies for people that want to do home inspections but want to work for somebody else. They take the class, pass the test and while looking to work for somebody, they have to pay for their own GL insurance.

    I know of people that do not want to own their own business.

    Is there any state out there that requires licensing but not GL while you are not doing home inspections?

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  2. #2
    Join Date
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    Spring Hill (Nashville), TN
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    Default Re: Indiana licensing needs an improvement

    If you put your license on hold or inactive status, I bet that you will not have to have the insurance coverage. Of course most states require you to pay fees to do this as well.

    I don't know of any state that will allow a person to have an active license and not have the required insurance in place if that license is active.

    Scott Patterson, ACI
    Spring Hill, TN
    www.traceinspections.com

  3. #3
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    Houston, Texas
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    Default Re: Indiana licensing needs an improvement

    Texas currently has no insurance requirements of any kind for home inspectors. The subject does come up at just about every Inspector Committee meeting but so far no one has been able to demonstrate that a lack of a GL or E&O requirement is damaging the public.

    At this point, insurance remains a personal business decision for each licensed inspector here in Texas. There is however a recovery fund operated by TREC that all licensees paid into when they got their license. This provides some "insurance-like" protection to the public but it does not protect the inspector. If the recovery fund has to pay out on behalf of an inspector then that inspector has to pay the fund back.



  4. #4
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    Helotes, Tx
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    Default Re: Indiana licensing needs an improvement

    Texas does have inspector insurance requirements. As of 9/1/08 all inspectors that get a license or renew their license are required to have insurance. If you try to renew your license and do not show proof of insurance you will not be allowed to renew.


  5. #5
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    Default Re: Indiana licensing needs an improvement

    Yes Texas does have insurance requirements as stated by Bob. Personally, I have talked myself blue in the face with insurance salesmen about what E&O does for my clients that General liability does not. Basically if I where to miss something gen liab is going to cover me just like if a brickie puts a wall up and it falls down. I know some of you are going to state different but the insurance folks I have talked to tell me the same thing. E&O appears to have the advantage of covering referring parties (Whaaaaaaaaaaaat). If they don't tell me to flounder the report then they can't be held liable for anything anyway. If they did want me to fix the report in a sale favor I would tell my client and not do the inspection.

    My thoughts. I would appreciate yours.

    Ted


  6. #6
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    Default Re: Indiana licensing needs an improvement

    Quote Originally Posted by Ted Menelly View Post
    Yes Texas does have insurance requirements as stated by Bob. Personally, I have talked myself blue in the face with insurance salesmen about what E&O does for my clients that General liability does not. Basically if I where to miss something gen liab is going to cover me just like if a brickie puts a wall up and it falls down. I know some of you are going to state different but the insurance folks I have talked to tell me the same thing. E&O appears to have the advantage of covering referring parties (Whaaaaaaaaaaaat). If they don't tell me to flounder the report then they can't be held liable for anything anyway. If they did want me to fix the report in a sale favor I would tell my client and not do the inspection.

    My thoughts. I would appreciate yours.

    Ted
    E&O is for your protection and not your client. This is the single largest misconception of professional liability insurance coverage. I have had E&O coverage for over ten years, seven of those ten years my HI license has required me to carry it.

    If I'm sued because I screw up, I have the peace of mind knowing that my personal assets will not be attacked and that my E&O will cover the litigation cost. This is what E&O is for and the reason that you should have it.

    Scott Patterson, ACI
    Spring Hill, TN
    www.traceinspections.com

  7. #7
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    Default Re: Indiana licensing needs an improvement

    I know what you are saying Scott. I have both. Hopefully your business and personal are separate. If you screw up your insurance would cover it anyway. Then tell me why the State of Texas requires you to carry E&O for the protection of your client!!!???? They must have misinterpreted it as well.

    Thanks

    Ted

    Hmmmm, did I phrase that right. I'll have to think on that one

    Last edited by Ted Menelly; 06-16-2008 at 08:38 AM. Reason: Phrasing

  8. #8
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    Default Re: Indiana licensing needs an improvement

    Quote Originally Posted by Ted Menelly View Post
    -- Then tell me why the State of Texas requires you to carry E&O for the protection of your client!!!????
    .
    Ted,

    I'm not Scott [ just my take .]

    If My Mistake Exceeds the $ amount of available Resources to pay The Remedy = E & O

    Sorry Mr. Client I don't have a spare 500k, 300k ,250k would you Settle for $63 Bucks.

    It Might have Choked Artie But it ain't gone'a choke Stymie! Our Gang " The Pooch " (1932)
    Billy J. Stephens HI Service Memphis TN.

  9. #9
    Kevin Luce's Avatar
    Kevin Luce Guest

    Default Re: Indiana licensing needs an improvement

    E&O insurance is there to protect the business. I would hope that most if not all home inspectors are LLC or INC. If a claim is made against my business, then E&O is there to defend and/or pay (if it benefits the insurance company or required by a ruling). This reduces the expense/liability from by business. If the damages exceed my E&O, then my business is at risk, not my personal assets.

    I wrote this even though most already know this, but some might not.

    I still think G/L insurance should not be required unless you are a practicing home inspector. It's done for Realtors around here and likely for other professions.


  10. #10
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    Talking Re: Indiana licensing needs an improvement

    63.00 sounds like a good flat fee. I think it should be mandated that any complaint be answered with a flat $63.00

    As I said to Scott, I understand, I carry both. But saying that I read and am explained to that the general liability would cover an unintentional, accidental, mistake anyway. So, saying that why is E&O mandatory for the protection of your clients. If your state mandates that you have to have E&O than and it is not for the protection of your clients then why mandate it. I have never had a come back on me and lets hope I don't have to find out the hard way.

    Not arguing here, I have a my belief why. Just asking the question of your belief. I ask a lot of questions for my own clarification even when the vast majority of the time I know the answer. I truly like to have a well rounded opinion and gain mine by gathering others opinions.

    Thanks

    Ted


  11. #11
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    Default Re: Indiana licensing needs an improvement

    Quote Originally Posted by Ted Menelly View Post
    -- I think it should be mandated that any complaint be answered with a flat $63.00
    .
    That Offer is only Good Before Lunch [ Gotta Eat! ].

    It Might have Choked Artie But it ain't gone'a choke Stymie! Our Gang " The Pooch " (1932)
    Billy J. Stephens HI Service Memphis TN.

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