How much insurance/pay per inspection???

[Alpha Dog]

Hello all. I am entering the business as a newbie and I am nearing the point of purchasing insurance. I have done some basic searchs and have been surfing the forums for a while but this is my first post.

My question is, is it true that an inspector needs a million in coverage because some realtors will not use them otherwise? Also, can lock box access be acquired with less coverage?

After crunching the numbers the pay per inspection policy seems like a much better value than purchasing a standard policy since the first year volume of inspections could be rather low. It is a 250K claim/500K aggregate per year. My main concern is the realtor issue and covering myself and family adequately. They claim that a big plus for realtors is that no claim can be made against them for referrals. Supposedly this can be used as a selling point.

Are any of you guys using this type of policy? Any input would be greatly appreciated. These forums have a wealth of information and are a great service.

[iniquette]

As far as liability insurance, most insurance companies will insist on a million dollar policy. I don't see why you would want less though, unless you plan on inspecting doghouses. Just kidding. The million dollar policy is the standard in my area. Obviously you can get more if you so wish. It seems like a lot but if something were to get damaged it adds up fast, especially when a lawyer gets involved. Never had to use mine but it's there if I need it.

[Alpha Dog]

Hey Ian. Thanks for the info. I believe that I will take your advice and go for a million. I will probably sleep better at night that way and realtors might like me more.

[Frank M. Carrio, CMI]

Originally Posted by Alpha Dog

Hello all. I am entering the business as a newbie and I am nearing the point of purchasing insurance. I have done some basic searchs and have been surfing the forums for a while but this is my first post.

My question is, is it true that an inspector needs a million in coverage because some realtors will not use them otherwise? Also, can lock box access be acquired with less coverage?

After crunching the numbers the pay per inspection policy seems like a much better value than purchasing a standard policy since the first year volume of inspections could be rather low. It is a 250K claim/500K aggregate per year. My main concern is the realtor issue and covering myself and family adequately. They claim that a big plus for realtors is that no claim can be made against them for referrals. Supposedly this can be used as a selling point.

Are any of you guys using this type of policy? Any input would be greatly appreciated. These forums have a wealth of information and are a great service. That is a refreshing attitude!
The NACHI bulletin board is a terrific source of information where you will find some of the top experts in this industry who were more than willing to help.

Hey Ian. Thanks for the info. I believe that I will take your advice and go for a million. I will probably sleep better at night
Having insurance is a good idea and indeed a necessity but .......... more than anything else .....
Attention to detail and a comprehensive a written report will also ensure that you get any "good night's sleep".

that way and realtors might like me more.

Once again, attention to detail and conveying this in a comprehensive and "non-alarmist manner" will make sure that not only the real estate agents like you but everyone else involved in the transaction will also "like you".

I wish you the best of luck!

[cduphily]

Call around for E&O/Gen. Liability ins. Then call Schuyler Hellings 888 - 400-8087 ext. 5343
or go to www.chinsurance.cc

[grusk]

Here is one on E&O I got in a e-mail the other day.


Inspectors E&O Insurance $1,250 Covers Entire Firm


New: Streamlined Self-Rater Application - Same Day Coverage
If the PDF fails to open, click for Word .doc

OREP Program Highlights
> "A" Rated Carrier, choice of deductibles > Included: Premiums cover all inspectors in your company for one low premium > Included: Additional Insured for Agents and other Referring Parties, Termite & Radon coverage, Commercial Inspections, Pool, Septic, New Construction/Code Compliance, Prior Acts Available for qualified applicants. Contingent Bodily Injury (BI) and Property Damage (PD)coverage available. (Provides coverage for bodily injury and property damage claims that arise out of professional services as an inspector at the job site).
> Same Day Financing

Do the numbers to see if you’re paying too much for E&O insurance. It pays to shop OREP.
(88 347-5273 • info@orep.org •www.orep.org

OREP • 6760 University Ave. #250 •San Diego• CA • 92115

Good luck

Gary

[Mike Mer]

Is there "tail insurance" for these policies? If I am using the correct term. I read something that this covers you after you get out of the business or the policy expires. I guess it keeps you covered in case someone sues you years later.

Also, HI need E/O, general liability insurance? Any other insurance? What is average cost/year for all insurance needed.


Hey, any of you guys buy your own medical/dental/life insurance? I'm just curious, I won't need it, because the wife works. But, you never know if I may want additional coverage.

[Russell Spriggs]

Hhmmm-
OREP may actually come in a little cheaper that what I've had (1 mill w/ 5k ded). . . Thanks, Gary!
I'll see what Schuyler offers, too; he's a pretty good guy.

[Ben L. Garrison]

I would be shocked if OREP's price turns out to be what they advertise.

Make sure the policy you choose has the agent indemnity rider (should be included) for marketing purposes.

As for the pay per inspection, there's one company out there who offers that, if they still even do, and I don't think there's a way to make that kind of insurance work.

[John McKenna]

Originally Posted by bgarrison

I would be shocked if OREP's price turns out to be what they advertise.

Make sure the policy you choose has the agent indemnity rider (should be included) for marketing purposes.

As for the pay per inspection, there's one company out there who offers that, if they still even do, and I don't think there's a way to make that kind of insurance work.

Interesting that the inspector has to buy his insurance that has coverage to please
the realtor. I do not solicit realtors.

[dharris]

Originally Posted by jmckenna1

Interesting that the inspector has to buy his insurance that has coverage to please
the realtor. I do not solicit realtors.

Ahh I see you caught that also
I kinda chuckle at Ben's marketing comments, the one I like the most is,
we haven't raised our prices in years.
I guess if they didn't raise them, they just kinda went up by themselves