general & O & E Liability

[rhriczo]

I am just getting quotes for general and O & E Liability insurance for a 1 person home inspection small business. The limit on each is 1 million and the deductible is $2500. I live in the North Georgia area. What can I expect to pay per year for this type of coverage? What quote amount would be too high, is there a base or average rate? Thanks for any advice.

[Ben L. Garrison]

Richard,

FREA offers 1 million of E&O with a $1,000 deductible for $3295 (unless you're a brand new inspector in which case it's $3550) and GL of 1 million for $450. We have a payment option too. It's hard to say what an "average" rate is simply because most policies differ in terms of the scope of coverage. Call me to discuss in further detail. 1-800-882-4410 ext. 104.

Ben Garrison

[dharris]

Originally Posted by bgarrison

Richard,

FREA offers 1 million of E&O with a $1,000 deductible for $3295 (unless you're a brand new inspector in which case it's $3550) and GL of 1 million for $450. We have a payment option too. It's hard to say what an "average" rate is simply because most policies differ in terms of the scope of coverage. Call me to discuss in further detail. 1-800-882-4410 ext. 104.

Ben Garrison

$3750 with GL for experienced inspectors..Holy mackrel you guys are expensive.
Hey Ben.. I completed over a 1000 hrs of education in high school, and
thought about being an inspector for over 3 years, I'll even sign a notarized statement claiming I did..
Will that qualify me for the no deductible that you offer cmi's that pay nickey 375.00 for that eliter than other nacho inspectors marketing title???
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[klott]

Originally Posted by rhriczo

I am just getting quotes for general and O & E Liability insurance for a 1 person home inspection small business. The limit on each is 1 million and the deductible is $2500. I live in the North Georgia area. What can I expect to pay per year for this type of coverage? What quote amount would be too high, is there a base or average rate? Thanks for any advice.

Richard, is Calhon anywhere near Calhoun, Ga.?

[Ben L. Garrison]

Originally Posted by dharris

$3750 with GL for experienced inspectors..Holy mackrel you guys are expensive.
Hey Ben.. I completed over a 1000 hrs of education in high school, and
thought about being an inspector for over 3 years, I'll even sign a notarized statement claiming I did..
Will that qualify me for the no deductible that you offer cmi's that pay nickey 375.00 for that eliter than other nacho inspectors marketing title???
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I thought about being a pilot for a couple of years. Would you hop on a plane that I was in control of?

Our rates are competitive when you consider the strength of our policy, the low deductible, in house counsel, etc., etc.

[dharris]

I thought about being a pilot for a couple of years. Would you hop on a plane that I was in control of?

Going by your company's policy on insuring HI, Sure why not, as long as you were certified to fly by an individual by paying 375.00 for that certification, and as long you signed a notarized statement that you met all the non verified requirements to fly the plane


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[klott]

O.K. Dan, how bout this one, will you go sky diving,(while I take 249 lessons) with me and let me pack your chute? No charge!

[Scott Schultz]

No matter how you look at it, $3000+ is too much for an E&O policy. ESPECIALLY when there is a $2500 ded. Realtors pay 1/10 of what we pay for E&O. Auto insurance premiums are a fraction of E&O and the amount of auto insurance claims far exceeds the amount of HI e&o claims. What is the justification for a $3000 premium with a $2500 ded.?

[klott]

It's really simple Scott, insurance co. are crooks. They don't pay anything, they just front you the money. If you file a claim, they will raise your premiums enough to recover the money they paid out, over a period of several years. they need to be stopped, however, they will keep on doing this because we let them get away with it. As long as states make it a mandatory law, they can charge as much as they want.

[Ben L. Garrison]

Originally Posted by Scott Schultz

No matter how you look at it, $3000+ is too much for an E&O policy. ESPECIALLY when there is a $2500 ded. Realtors pay 1/10 of what we pay for E&O. Auto insurance premiums are a fraction of E&O and the amount of auto insurance claims far exceeds the amount of HI e&o claims. What is the justification for a $3000 premium with a $2500 ded.?

Comparing auto insurance and home inspector E&O is apples and oranges to say the least. With auto, it's volume business. What do you think the ratio of drivers with auto insurance is versus home inspectors with E&O insurance (not in licensed states)? Insurance premiums are determined mainly by projected losses that the company anticipates. And that is determined by claims experience from years prior.

I'm not sure what carrier/provider is charging $3,000 with a $2500 deductible, I certainly would not buy that. Too much exposure with a high deductible like that.

[Ben L. Garrison]

Originally Posted by klott

It's really simple Scott, insurance co. are crooks. They don't pay anything, they just front you the money. If you file a claim, they will raise your premiums enough to recover the money they paid out, over a period of several years. they need to be stopped, however, they will keep on doing this because we let them get away with it. As long as states make it a mandatory law, they can charge as much as they want.

Insurance companies are crooks until you get a claim and need their help. People generally have a negative attitude toward insurance because you're paying for something you can't see, touch, or feel. And the only time you know it's there, other than when you write the check, is if you get sued.

FYI, FREA has not raised rates since September of '05. Nor do we individually penalize an inspector for claims as far as rates go.

[klott]

Don't take it personal Ben, but give up on tryng to convince me, I have dealt with them too long.

[Scott Schultz]

Originally Posted by bgarrison

Comparing auto insurance and home inspector E&O is apples and oranges to say the least. With auto, it's volume business. What do you think the ratio of drivers with auto insurance is versus home inspectors with E&O insurance (not in licensed states)? Insurance premiums are determined mainly by projected losses that the company anticipates. And that is determined by claims experience from years prior.

I'm not sure what carrier/provider is charging $3,000 with a $2500 deductible, I certainly would not buy that. Too much exposure with a high deductible like that.

the problem with private companies is that they can charge whatever they want to. The problem is that when these companies make millions of dollars in PROFIT, how much of it is refunded back to the customer? Take exxon/mobil for example....10 billion is profits and how much are we paying for gas? The thing with insurance is that you usually pay too much, then when you file a claim, the ins. co. RAISES your premium! How about those claim-free years where the premium was paid and no claim was filed...where was the partial refund?
You say that FREA does not penalize for claims. does that mean that you penalize for a claim made or you don't penalize even though you have to pay either on settlement or judgement

[Michael Larson]

Originally Posted by Scott Schultz

the problem with private companies is that they can charge whatever they want to. The problem is that when these companies make millions of dollars in PROFIT, how much of it is refunded back to the customer? ....

A Primer on Gasoline Prices

[Scott Schultz]

michael,

not sure of your point in relation to my quote