Any updates on new TX insurance requirements? - InspectionNews

imported_John Smith · #1 (**permalink**) 08-21-2007, 07:52 PM

Curious if anyone has any information on this. If it turns out we require E&O, has anyone seen any type of standard quote?

My license doesnt require renewal for a while, so I am in good shape, just trying to get an idea of how to incorporate the price increase into my business.

Thanks

Jim Luttrall · #2 (**permalink**) 08-21-2007, 11:23 PM

Trec is proceeding as if E&O is what is required until they hear differently from the Attorney General. It seems that about $1400-1700 is the low end range for coverage from what I remember seeing on this board... but it all depends on who and how much coverage you get. I am thinking if I have to carry E&O, the measly $100,000 limit won't even cover the lawyers fees from the big target on my back. I will likely opt for at least $500K if I can afford it.

Thom Walker · #3 (**permalink**) 08-22-2007, 07:23 AM

Quote:

Originally Posted by Jim Luttrall

Trec is proceeding as if E&O is what is required until they hear differently from the Attorney General. It seems that about $1400-1700 is the low end range for coverage from what I remember seeing on this board... but it all depends on who and how much coverage you get. I am thinking if I have to carry E&O, the measly $100,000 limit won't even cover the lawyers fees from the big target on my back. I will likely opt for at least $500K if I can afford it.

By all means spend the few extra bucks to consult a qualiied defense lawyer before you commit to any amount of coverage. It may well be that the size of the target is directly proportionate to the size of the policy. That is the consensus of the three I have consulted so far.

Brian Hannigan · #4 (**permalink**) 08-22-2007, 09:58 AM

Quote:

Originally Posted by imported_John Smith

... just trying to get an idea of how to incorporate the price increase into my business.

Thanks

Just run it through The Cost Of Business. That is what the program is there for.

http://www.CostOfBusiness.com

Nolan Kienitz · #5 (**permalink**) 08-22-2007, 10:56 AM

You can plug in 'assumptions' of what your premium will be. It won't cost to contact several providers and get definitive quotes. Not very many companies offer $100K coverage.

I have several quotes and my best (to date) is from a major provider and it was:

$500K w/$2500 deduct for $1728/annual
$1M w/$2500 deduct for $2160/annual

Your quote may vary due to experience, etc., etc.

Use your quotes and plug into Brian's "Cost of Business". That program will help immensely.

imported_John Smith · #6 (**permalink**) 08-22-2007, 06:18 PM

The only problem I see with utilizing the "Cost of Business" is that I have to continuously compete with people that don't have a clue how to run a business and have ridiculously low rates.
A small minority of the folks in my area seem to treat this as a hobby for the most part. Unfortunately, I have to compete with them.

We see it all the time with the trades people. Low skilled, untrained workers, that drive old beat up junk, but they can put up a piece of sheet rock. They are only making enough to get by. They sure arent running it like a business. Go into a Home Depot/Lowes/Menards, etc. You will see them in there getting their supplies. The real pros have a plan and already have the materials they need.

When this new requirement drives them out of business..........., it should make it much easier to compete.

Ken Larson · #7 (**permalink**) 09-19-2007, 06:44 PM

What really chaps my butt are these scum bag insurance agents who keep sending me flyers and emails trying to get my business. They always start with the same question..."Hey, do you know that Texas now requires inspectors to carry E&O insurance.....have we got a deal for you!" Almost like ambulance chasing lawyers.

Rick Hurst · #8 (**permalink**) 09-19-2007, 07:18 PM

Ken,

They are no different than the HI that walks in and leaves his card or flyer in a real estate office. They are hoping to get some business, right.

Most of the insurance reps. that are contacting you just work for the insurance provider and are trying to make a living like the rest of us.

JMO

rick