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  1. #1
    Join Date
    Jul 2017
    Location
    FL
    Posts
    14

    Default Insurance Advice - General Liability (GL) & Errors and Omissions (E&O)

    Hey everybody,

    I am new to the business and attempting to determine which insurance provider to use, and what limits and types of coverage to get. In Florida, I am required to carry at a minimum $300k of General Liability coverage, but am not required to carry E&O insurance, although I think it may be a good idea.

    So far, I've received a few quotes ranging between $1700-2100 depending on premium and limits. This seems high to me, especially as my revenue will be quite slow at first until I built up a customer base.

    Wanted to hear from some of you seasoned experts out there. Which provider do you use? How has your experience been with them? What should I except to pay for GL and E&O starting out? What limits, if any, do you recommend for each? Do the premiums come down over time? Have you all ever had to make a claim? If so, would love to hear more about the claim and the process.

    Thanks a lot!!!
    Kurt

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  2. #2
    Join Date
    Mar 2007
    Location
    Orlando, FL
    Posts
    1,423

    Default Re: Insurance Advice - General Liability (GL) & Errors and Omissions (E&O)

    As a fellow Florida Home Inspector, those premiums are low compared to where they were 10-15 years ago (at least 2x that quote, back then).
    They are, however, in line with the current rates.

    All in all, they are a "cost of doing business" and you need to budget for these expenses. Your limited experience may be exactly why the rates go up (think about it...)

    Call Ben Garrison with Elite/MGA (302-690-9839) for a quote. He's very knowledgeable and helpful, and I use him for my General Liability & E/O Insurance.

    Dom.


  3. #3
    Join Date
    Jul 2017
    Location
    FL
    Posts
    14

    Default Re: Insurance Advice - General Liability (GL) & Errors and Omissions (E&O)

    Quote Originally Posted by Dom D'Agostino View Post
    As a fellow Florida Home Inspector, those premiums are low compared to where they were 10-15 years ago (at least 2x that quote, back then).
    They are, however, in line with the current rates.

    All in all, they are a "cost of doing business" and you need to budget for these expenses. Your limited experience may be exactly why the rates go up (think about it...)

    Call Ben Garrison with Elite/MGA (302-690-9839) for a quote. He's very knowledgeable and helpful, and I use him for my General Liability & E/O Insurance.

    Dom.
    Very Helpful! Thanks a lot Dom!


  4. #4
    Join Date
    Jul 2012
    Location
    San Diego
    Posts
    11

    Default Re: Insurance Advice - General Liability (GL) & Errors and Omissions (E&O)

    Quote Originally Posted by Kurt Stein View Post
    Hey everybody,

    I am new to the business and attempting to determine which insurance provider to use, and what limits and types of coverage to get. In Florida, I am required to carry at a minimum $300k of General Liability coverage, but am not required to carry E&O insurance, although I think it may be a good idea.

    So far, I've received a few quotes ranging between $1700-2100 depending on premium and limits. This seems high to me, especially as my revenue will be quite slow at first until I built up a customer base.

    Wanted to hear from some of you seasoned experts out there. Which provider do you use? How has your experience been with them? What should I except to pay for GL and E&O starting out? What limits, if any, do you recommend for each? Do the premiums come down over time? Have you all ever had to make a claim? If so, would love to hear more about the claim and the process.

    Thanks a lot!!!
    Kurt

    Hey Kurt,

    OREP has a great E&O and GL policy for new inspectors with a starting minimum premium of $1,500 in FL for $300,000 coverage limits. The policy includes many incidental coverages as well, such as infrared, radon, EIFS/Stucco, and much more.

    If you have any questions or are interested in a quote, feel free to contact us at 888-347-5273 or visit our website: www.orep.org

    Best of luck to you.

    Isaac Peck | OREP Home Inspector E&O/GL Insurance | http://orep.org/home-inspectors-eo-insurance/
    OREP//David Brauner Insurance Services Calif. Ins. license #OC89873

  5. #5

    Default Re: Insurance Advice - General Liability (GL) & Errors and Omissions (E&O)

    Quote Originally Posted by Kurt Stein View Post
    Hey everybody,

    I am new to the business and attempting to determine which insurance provider to use, and what limits and types of coverage to get. In Florida, I am required to carry at a minimum $300k of General Liability coverage, but am not required to carry E&O insurance, although I think it may be a good idea.

    So far, I've received a few quotes ranging between $1700-2100 depending on premium and limits. This seems high to me, especially as my revenue will be quite slow at first until I built up a customer base.

    Wanted to hear from some of you seasoned experts out there. Which provider do you use? How has your experience been with them? What should I except to pay for GL and E&O starting out? What limits, if any, do you recommend for each? Do the premiums come down over time? Have you all ever had to make a claim? If so, would love to hear more about the claim and the process.

    Thanks a lot!!!
    Kurt

    Kurt,

    Great questions. First things first: Got to recommend you get a quote with us at InspectorPro. We offer great benefits in addition to our E&O and general liability coverage, including pre-claims assistance, no E&O sublimits, risk management education, and a diminishing deductible.

    *stepping off my soapbox* Now, to answer your questions:

    0. Carrying E&O when it isn't required in my state

    This wasn't a flat-out question, but you talked about thinking E&O is a good idea even though it's not required by your state. YES IT IS!!!!!! While it's more expensive than GL, the vast majority of claims are E&O claims. (Read about the two coverage types and why most in the industry recommend carrying both here.)

    1. What should I expect to pay for GL and E&O starting out?

    That depends on several factors. With any insurance company, your initial rate is a blend of geography, revenue, loss requirements, and experience. Then it's up to preference: The higher your limits, the higher the price. The lower your deductible, the higher the price. However, the higher price often indicates more coverage. Also, if you're adding any additional services, like mold or pest, they can add cost to your annual rate.

    However, your quotes ranging between $1700-$2100 are pretty standard for the industry. The only way to see if you can get something cheaper is to shop around. Just note that buying the cheapest coverage usually isn't worth the risk as it's likely there are sublimits or exclusions limiting your coverage.

    2. What limits, if any, do you recommend for each?

    Read our article on 4 Ways to (Re)Choose Your Limits here. We break down how limits work, what's most popular, and how limits can be structured to provide varying levels of coverage. We also did an article on choosing your deductible, which you can read here.

    3. Do the premiums come down over time?

    Not often. Theoretically, if you've received an experience surcharge, it can drop off. However, by the time your surcharge is about to fall off, you've likely grown your business or added services, which may affect your premiums. Really, what you're looking for is a flat rate (i.e. little to no change from year to year). If you're looking for financial rewards, look for a company that has programs like a diminishing deductible.

    4. Have you ever had to make a claim? If so, would love to hear more about the claim and the process.

    This is a really great question. Unfortunately, it's hard to answer since a lot of providers handle claims differently. The key things to figure out are:
    • how the insurance company defines a claim
    • how the insurance company typically assists when claims are filed


    Also, look into benefits like pre-claims assistance and risk management education to see if your insurance provider will start defending you before a complaint turns into a claim. (Our pre-claims assistance program stifles 85% of complaints reported before they turn into claims.)

    When it comes to getting specific stories, we're starting a series next month in which we share specific cases from our vault and break them down from start to finish. I'd recommend checking that out. (You can get an update when the article's published by subscribing to our newsletter here.) I know of one other provider that used to publish claims scenarios and end costs in their newsletter, but I haven't seen them do that for a while. We did do an article on the top five most common claims against home inspectors (here) that may be helpful. Other than that, it's about getting stories from other inspectors like you're doing now and point-blank asking providers about their practices. You're on the right track.

    Let me know if you have any more questions. Happy shopping and congratulations on joining the industry!

    Stephanie Jaynes
    Marketing Director
    InspectorPro Insurance
    We Protect. You Inspect.
    www.inspectorproinsurance.com

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