E&O Posted Policy

[John McKenna]

I ask the Insurance agent who has offered E&O at $850 - $880 to post his policy.
Here is his response. Do your own homework.

Posted with permission:

John, I'd be happy to.

Here's a summary of the E&O policy available through my agency. Most of the language I took strait out of the policy. Hopefully you find this useful in deciding which policy to purchase.

The policy is called a Miscellaneous Professional Liability Policy
It is a claims made policy.

In this case, it covers the performance of home inspection services for others
Liability limits available are $1,000,000, $500,000 and $250,000 for each claim and aggregate.
$5000 each claim and aggregate limit is provided for Disciplinary Proceeding Claims Expenses
Deductible of $2500 applies to $250K and $500K Policy Limit and $5000 deductible for the $1MM Limit
Retroactive Date applies to inspections done in preceding policy years when continuous coverage is maintained.
The policy covers the named insured business, it's employees and independent contractors who are natural persons, but only with respect to Professional Services performed on behalf of the named insured.

The policy provides liability coverage on behalf of the insured in excess of the deductible that the insured shall become legally obligated to pay as damages and claims expenses because of a claim first made against the insured and reported to the company during the policy period by reason of a wrongful act committed on or subsequent to the retroactive date and before the end of the policy period.

Wrongful act means any actual or alleged negligent act, error, omission, misstatement, misleading statement or personal injury offense committed by the insured or by any other person or entity for whom the insured is legally liable in the performance of the or failure to perform professional services.

The insurance company will not be liable for damages or claims expenses on account of any claim attributable to any dishonest, fraudulent, criminal or malicious act or omission, or any intentional or knowing violation of the law by an insured.

Referring Realtor liability is not included.
Prices are very competitive.
Sample contracts are provided with all quotes.
Inspectors outside of Texas are welcome to call for assistance locating an agent in their state.

Robert Dupuis
Agency Owner
1333 McDermott Dr.,
Suite 200 Allen, TX 75013
Ph 214.547.7222 Fax 214.547.0061
robertdupuis@Allstate.com.
Does your auto policy provide Accident Forgiveness; $100 Collision Deductible Awards; Safe Driving Bonuses; and New Car Replacement Coverage? ------ Mine Does -- Ask me how to add it to your policy.

Direct all questions to:
Robert Dupuis
214.547.7222
robertdupuis@allstate.com

Insurance provided by Westchester Fire Insurance Company, Roswell, GA.

I’m an insurance agent in Allen, Texas. When I heard of the legislative action affecting your industry, I went to work on getting all the facts and requirements they laid down on this, looking for a way to help.

Through a broker arrangement that recently opened up, affordable E&O is currently available through my agency in Texas from a top rated carrier. Coverage limits of $250K, $500K and $1MM are available.

Information is available for persons outside of Texas.

A new inspector just purchased a $250,000 policy for $880. No resume or financial statements are required. Financing is also available. If you’d like additional information give me a call or send an email. I’ll be happy to share what I know.

Robert Dupuis
214.547.7222
robertdupuis@allstate.com

Insurance provided by Westchester Fire Insurance Company, Roswell, GA. Prices vary. Deductibles apply.


Profile for Westchester Fire Insurance Company
http://goliath.ecnext.com/coms2/prod...6688-page.html
Primary SIC: Fire, Marine And Casualty Insurance, Primary NAICS:
Direct Property and Casualty Insurance Carriers
Description: Insurance: Provider of property and casualty insurance and services.

Listed with this company
http://www.ace-ina.com/licensing.asp

[Barry Adair]

John,

Thanks for the info but I'm just an ole Texas man and don't quite understand insurancese.

Can you or he break this down into English or better yet Texan?

After the second read it didn't sound like they were covering much of anything that may be claimed.

[Kevin R. Weiss]

Originally Posted by badair

After the second read it didn't sound like they were covering much of anything that may be claimed.

True, but is that not the case for all insurance? Pay on time and sleep easy -- until the time comes that you actually need to file a claim. Then you deal with a "different" department that isn't near as friendly. While I have not specifically compared, I am willing to bet most all of that disclaimer language is in the policy I have from Allen Insurance.

[John McKenna]

I have posted what was give to me. I am not an expert and cannot answer
questions. Please contact

Robert Dupuis
214.547.7222
robertdupuis@allstate.com

I have posted the information in hopes the other insurers would post their policy
and we could have full disclosure of the mystery we call E&O.

[Michael R. Boyett]

Other than:

The insurance company will not be liable for damages or claims expenses on account of any claim attributable to any dishonest, fraudulent, criminal or malicious act or omission, or any intentional or knowing violation of the law by an insured.

what disclaimer are you referring to? My Towers-Perrin policy has almost identical language.

[Larry D. Kage]

QUOTE:

"The policy covers the named insured business, it's employees and independent contractors who are natural persons, but only with respect to Professional Services performed on behalf of the named insured."


Who is considered a "natural person"?

[Michael R. Boyett]

From Wikipedia (if you trust such):

In jurisprudence, a natural person is a human being perceptible through the senses and subject to physical laws, as opposed to an artificial or juristic person, i.e., an organization that the law treats for some purposes as if it were a person distinct from its members or owner.
For example, such legal provisions as Amendment XIX to the United States Constitution, which guarantees a woman's right to vote, apply to natural persons only. In many cases fundamental human rights are implicitly granted only to natural persons; for example a corporation cannot hold public office, but it can file a lawsuit.

So, the policy would cover Joe the HVAC guy but not the company he works for.

[Ben L. Garrison]

Big question...and maybe I didn't read it correctly, but are defense costs included in this policy?

[Emmanuel J. Scanlan]

Originally Posted by bgarrison

Big question...and maybe I didn't read it correctly, but are defense costs included in this policy?

Are defense costs included in the per occurrence and aggregate of the FREA policy?

[Ben L. Garrison]

Originally Posted by escanlan

Are defense costs included in the per occurrence and aggregate of the FREA policy?

Absolutely! You're responsible for the deductible, which we front for you, and then all other costs, defense included, are paid for by the insurance company.

That is the real purpose for E&O. The people making the money is this are the lawyers. If that policy does not cover defense costs, that will surely explain the low premium.

[Emmanuel J. Scanlan]

Originally Posted by bgarrison

Absolutely! You're responsible for the deductible, which we front for you, and then all other costs, defense included, are paid for by the insurance company.

That is the real purpose for E&O. The people making the money is this are the lawyers. If that policy does not cover defense costs, that will surely explain the low premium.

From the policy sent with the quote from Allstate:

B. Defense
1. The Company shall have the right and duty to defend any covered Claim brought against the Insured even if the Claim is groundless, false or fraudulent. The Insured shall not admit or assume liability or settle or negotiate to settle any Claim or incur any Claims Expenses without the prior written consent of the Company and the Company shall have the right to appoint counsel and to make such investigation and defense of a Claim as it deems necessary.

From the definitions section:

D. Claims Expenses means:
1. reasonable and necessary attorneys' fees, expert witness fees and other fees and costs incurred by the Company, or by the Insured with the Company's prior written consent, in the investigation and defense of covered Claims; and
2. premiums for any appeal bond, attachment bond or similar bond, provided the Company shall have no obligation to apply for or furnish such bond. Claims Expenses shall not include wages, salaries, fees or costs of directors, officers or employees of the Company or the Insured.

By the way, what a novel concept of sending a sample policy with your E&O quote. Gee Whiz, that sure helps when it comes time to compare competitors offerings and BEFORE you hand them any premium monies!!!


Wow, I wonder how this underwriter is able to offer such low premiums with coverage like this??

[John McKenna]

Originally Posted by bgarrison

Big question...and maybe I didn't read it correctly, but are defense costs included in this policy?

Here is the answer to the question you ask Ben.
This is the respone I got.

Posted by permission

John, there are 2 defense types mentioned. One defends your license and the other defends the insured in the event of a claim. Please see the blue lines in the information below.

The policy is called a Miscellaneous Professional Liability Policy
> It is a claims made policy.
> In this case, it covers the performance of home inspection services for others
> Liability limits available are $1,000,000, $500,000 and $250,000 for each claim and aggregate.
> $5000 each claim and aggregate limit is provided for Disciplinary Proceeding Claims Expenses
> Deductible of $2500 applies to $250K and $500K Policy Limit and $5000 deductible for the $1MM Limit
> Retroactive Date applies to inspections done in preceding policy years when continuous coverage is maintained.
> The policy covers the named insured business, it's employees and independent contractors who are natural persons, but only with respect to Professional Services performed on behalf of the named insured.
> The policy provides liability coverage on behalf of the insured in excess of the deductible that the insured shall become legally obligated to pay as damages and claims expenses because of a claim first made against the insured and reported to the company during the policy period by reason of a wrongful act committed on or subsequent to the retroactive date and before the end of the policy period.
> Wrongful act means any actual or alleged negligent act, error, omission, misstatement, misleading statement or personal injury offense committed by the insured or by any other person or entity for whom the insured is legally liable in the performance of the or failure to perform professional services.
>
> The insurance company will not be liable for damages or claims expenses on account of any claim attributable to any dishonest, fraudulent, criminal or malicious act or omission, or any intentional or knowing violation of the law by an insured.
>
> Referring Realtor liability is not included.
> Prices are very competitive.
> Sample contracts are provided with all quotes.
> Inspectors outside of Texas are welcome to call for assistance locating an agent in their state.


Robert Dupuis
Agency Owner
1333 McDermott Dr., Suite 200
Allen, TX 75013
Ph 214.547.7222
Fax 214.547.0061
robertdupuis@Allstate.com.

Ben, I value your feedback.

[Emmanuel J. Scanlan]

Ben Garrison,

By the way, how about sending me a copy of FREA's policy (as you previously offered) so that I can compare it to the Allstate policy sent to me?