Thread: E & O Insurance...

Originally Posted by Tim Moreira

Ben,

I agree with you on the credit score/in_surance rates. That's a load of crap. Since you pay for the in_surance in the front, not the rears, there is no danger of the not getting paid by a person with bad credit problems.

Credit score does not determine accident rates in my opinion. Can't see how that is possible.

Secondly, I would like to see more in_surance companies have a more affordable way for part time inspectors or for when things slow down like now. Any thoughts on a per use inspection? If that could be done in an affordable manner to both parties you could end up with more clients.

RIGHT- credit scores don't determine accidents, but the same tendency to use poor judgement/ behavior that can result in a low credit score, can also result in at fault accidents. If Insurers make an analysis- and the result of the analysis is that people with low credit scores tend to have higher accident rates- why wouldn't they use that information when assessing risks?

We know Federal Pacific panels have higher risk associated with them, so we warn against them. We don't "know" that a particular panel will cause a problem. But we certainly think it is prudent to consider the possible higher risk.

Originally Posted by JOHN PAVAN

RIGHT- credit scores don't determine accidents, but the same tendency to use poor judgement/ behavior that can result in a low credit score, can also result in at fault accidents. If Insurers make an analysis- and the result of the analysis is that people with low credit scores tend to have higher accident rates- why wouldn't they use that information when assessing risks?

We know Federal Pacific panels have higher risk associated with them, so we warn against them. We don't "know" that a particular panel will cause a problem. But we certainly think it is prudent to consider the possible higher risk.

Bull

Insurance companies and everyone else just uses what ever information they believe they can work on the public with as to why they charge higher rates. There are millions of people with bad creadit or have follon on hard times or lost there job or climbed to the top to only lose everything that has created there bad credit and outcomes in life. Everyone is lead to believe that if one falls on hard times it is all due to their own stupid decisions in life.....bunk. Period. It is bulshit reasons that are pumped into minds like yours and millions of others that fall for that foolish logic. I just cannot ubelive they keep getting so many to fill the minds of with all that crap. I guess if they say it long enough and loud enough it becomes true.

Are there losers and idiots and lazy fools out there? Yes, millions. But are the rest of the multi millions gulty as charged by you and the like. No, I think not. Putting one self on high above others is not being a nice person. I know you know that.

Now, as to FPE panels???? Replace them all. Too completely different and totaly unrelated logics you are trying to piece togehter.

Wow. I said all that? And to think I have been so nice for so long. Oh well, back to nice after this.

Night now

Originally Posted by Ted Menelly

Bull

Insurance companies and everyone else just uses what ever information they believe they can work on the public with as to why they charge higher rates. There are millions of people with bad creadit or have follon on hard times or lost there job or climbed to the top to only lose everything that has created there bad credit and outcomes in life. Everyone is lead to believe that if one falls on hard times it is all due to their own stupid decisions in life.....bunk. Period. It is bulshit reasons that are pumped into minds like yours and millions of others that fall for that foolish logic. I just cannot ubelive they keep getting so many to fill the minds of with all that crap. I guess if they say it long enough and loud enough it becomes true.

Are there losers and idiots and lazy fools out there? Yes, millions. But are the rest of the multi millions gulty as charged by you and the like. No, I think not. Putting one self on high above others is not being a nice person. I know you know that.

Now, as to FPE panels???? Replace them all. Too completely different and totaly unrelated logics you are trying to piece togehter.

Wow. I said all that? And to think I have been so nice for so long. Oh well, back to nice after this.

Night now

You are missing the point. Insurers have no way of looking at people individually. They look at overall statistics. From everything I have read, there is a correlation between low credit scores and higher accident rates. Does that mean that everyone with a low credit score has a higher accident rate- no, of course not. Is it fair- not perfectly. Take life insurance, men will pay higher rates than women, because in general, they will die sooner. Does that mean that all men will live shorter lives than women- of course not, but in general it is true. The insurer will use any cost effective means they can to try a discern risk.

Of course, insurers will try to justify higher rates, that's what we have competition for.

Hello- this is David Brauner, Senior Broker at OREP. A couple of things I'm hearing: we are getting calls from inspectors who are having trouble renewing their insurance this year- waiting a long time for quotes or not getting quoted. My advice is simple- shop early so you can get the best policy at the best price and not have to feel pressure to accept terms you’re not happy with for fear of losing your prior acts. You all know when your policy is expiring, it's on your Declarations page. Shop early and shop well.

Second, and this is kind of a commercial: I am hearing from inspectors in “expensive” states like California, Florida and New Jersey, saying they are not getting the coverage or price they are seeking because they live in a “high liability” state. Seek out a program with “flat rates” across all the states so you are not penalized because of where you live. Shop for the broadest coverage, Admitted if you can find it, low rates and of course, great service.

- - - Updated - - -

Hello- this is David Brauner, Senior Broker at OREP. A couple of things I'm hearing: we are getting calls from inspectors who are having trouble renewing their insurance this year- waiting a long time for quotes or not getting quoted. My advice is simple- shop early so you can get the best policy at the best price and not have to feel pressure to accept terms you’re not happy with for fear of losing your prior acts. You all know when your policy is expiring, it's on your Declarations page. Shop early and shop well.

Second, and this is kind of a commercial: I am hearing from inspectors in “expensive” states like California, Florida and New Jersey, saying they are not getting the coverage or price they are seeking because they live in a “high liability” state. Seek out a program with “flat rates” across all the states so you are not penalized because of where you live. Shop for the broadest coverage, Admitted if you can find it, low rates and of course, great service.

- - - Updated - - -

Hello- this is David Brauner, Senior Broker at OREP. A couple of things I'm hearing: we are getting calls from inspectors who are having trouble renewing their insurance this year- waiting a long time for quotes or not getting quoted. My advice is simple- shop early so you can get the best policy at the best price and not have to feel pressure to accept terms you’re not happy with for fear of losing your prior acts. You all know when your policy is expiring, it's on your Declarations page. Shop early and shop well.

Second, and this is kind of a commercial: I am hearing from inspectors in “expensive” states like California, Florida and New Jersey, saying they are not getting the coverage or price they are seeking because they live in a “high liability” state. Seek out a program with “flat rates” across all the states so you are not penalized because of where you live. Shop for the broadest coverage, Admitted if you can find it, low rates and of course, great service.

I'm a fairly new home inspector in Tennessee, 5 years as an inspector (with 28 years in the construction trades).
In this state the point of whether you want to buy insurance or not is mute. The state mandates E&O insurance and general liability for inspectors.
You are required to provide a coverage binder from your insurance company before obtaining or renewing your license.

Originally Posted by Paul Kondzich

... I am INC. so I'm taking my chances.

That "INC." is easy to get past is you are sued.

There are all kinds of typical and 'standard practices' that individuals who are "Incorporated" make that makes all the effort associated with being "Incorporated" basically worthless for protection from being sued.

It is my great pleasure to announce that one of the biggest problems in our inspection industry has been solved.
We now own our own insurance company and so no more B.S. when you file a claim. InterNACHI is now in full control of pricing, coverage, and claim handling. This is a first: Our industry owns its own insurance company. No more are inspectors at the mercy of underwriters. Our New Year's gift to you: www.nachi.org/insurance-pr

Originally Posted by Lisa Endza

It is my great pleasure to announce that one of the biggest problems in our inspection industry has been solved.
We now own our own insurance company and so no more B.S. when you file a claim. InterNACHI is now in full control of pricing, coverage, and claim handling. This is a first: Our industry owns its own insurance company. No more are inspectors at the mercy of underwriters. Our New Year's gift to you: www.nachi.org/insurance-pr

Details please? Link?

Originally Posted by Tim Moreira;38 ... company assets equal less than $500.00 in the company bank account [B

and[/B] that I have some used tools and a few nice brochure holders they could have, I don't think I will hear back from them. Nothing there to collect.

Except, in most states, your house.

Also, in my state my home that I live in is *homesteaded* meaning no one can sue you and take it away from you (except the tax man if you don't pay him )

In Florida, that is the case.

But there is your vehicle, your boat, your bank account, your ... that is at risk (yes, even with being a corporation).

Not to toot our own horn, but InspectorPro has a new program for ASHI members that was announced last week, too. You can learn more about it here: https://ipro.insure/IN-ashi-advantage.

As for the resurrected discussion regarding incorporation and risk management, we have a long-form article on the subject coming out on 2/15. But the short answer is that incorporating does provide some limited legal protection against clients coming after your personal assets. Because that protection isn't foolproof, we recommend taking additional measures, including following your state's operating formalities, getting your pre-inspection agreement signed 100% of the time, and, of course, carrying E&O and general liability insurance.

Inspection industry changed last week. InterNACHI doesn't have an "insurance program." It now is the insurance company: www.nachi.org/insurance-pr