Insurance ? What can Happen to YOU !

[Peter Hughes]

I have an issue with E&O insurance.

Have you all read the insurance companies requirements carefully?

Do you really think your insured?

The companies seem to think that if you can not produce the PRE-Inspection agreement then guess what ... Your not insured!

How about if you change insurance companies? What just happened to your insurance on the inspections you just did?

Do you think your insured?

How about this scenario:

Your client is from out of state, or can not be at the inspection. Are you insured? I seriously doubt it.

How about if you change jobs and decide not to be an inspector anymore.
Are you insured on the inspections you completed while having insurance with the company?

I doubt it.

So,you do inspections for years, and carry E&O insurance. Then you decide to change insurance companies or retire from being an inspector. So do you continue your old E&O insurance with the company? Of-course not.

Then to your surprise, a year later your in need of the insurance. Do you think your covered. NO.

I have not had this problem, but want to warn you,:

THIS COULD HAPPEN TO YOU.

As a matter of fact, if you loose the PRE_Inspection agreement.

GUESS WHAT !!!!

For Warned is for Armed.

[jferry]

I have an issue with E&O insurance.

Have you all read the insurance companies requirements carefully?

Do you really think your insured?

The companies seem to think that if you can not produce the PRE-Inspection agreement then guess what ... Your not insured!

This is nonsense. The failure to produce your pre-inspection agreement will not negate your coverage any more than the failure to produce your deed will negate your homeowners coverage.

How about if you change insurance companies? What just happened to your insurance on the inspections you just did?

Do you think your insured?

Yes. Obviously no one would ever change insurance companies if doing so meant you would not be covered for prior inspections. As long as you were insured prior to changing your carrier and have no knowledge that a prior inspection will result in a claim being made under the new coverage, you are covered for claims made under the new policy for any alleged negligent inspection conducted under your prior coverage.

How about this scenario:

Your client is from out of state, or can not be at the inspection. Are you insured? I seriously doubt it.

Of course you are. What gave you the idea that you wouldn’t be?

How about if you change jobs and decide not to be an inspector anymore.
Are you insured on the inspections you completed while having insurance with the company?

I doubt it.

If you leave the business and your insurance expires, any claim made after the policy expired would not be covered unless you purchased tail coverage. Tail coverage covers you until the end of time for any inspections made prior to your leaving the business.

So,you do inspections for years, and carry E&O insurance. Then you decide to change insurance companies or retire from being an inspector. So do you continue your old E&O insurance with the company? Of-course not.

Then to your surprise, a year later your in need of the insurance. Do you think your covered. NO.

You can change companies with impunity because you will be covered for prior inspections as long as you do not have actual knowledge of a pending claim. In that case or in the case of a retirement from the business, you should purchase tail coverage from your prior company.

I have not had this problem, but want to warn you,:

THIS COULD HAPPEN TO YOU.

As a matter of fact, if you loose the PRE_Inspection agreement.

GUESS WHAT !!!!

For Warned is for Armed.

You are warning folks about a problem that does not exist.

[Peter Hughes]

Are YOU WRONG!!!

READ THE AGREEMENTS then tell me !!



I HAVE and I have called them, and gotten written responses.

HOW ABOUT YOU !!

[Peter Hughes]

Joe Ferry is NACHI's general counsel - that would be a question for him. There is a link on NACHI's website to e-mail Joe.








"Pete" <knightstars@comcast.net> 04/14/2006 09:11 AM

To

nachiinfo/Towers Perrin@TP

cc
Subject

RE: Insurance question




Next Question, Is it acceptable to have wording in the pre-inspection agreement that states that payment in full is considered acceptance of the pre inspection agreement in lieu of the signature?

From: Rachel Bingham [mailto:rachel.bingham@towersperrin.com] On Behalf Of nachiinfo
Sent: Friday, April 14, 2006 6:54 AM
To: Pete
Subject: Re: Insurance question


Dear Mr. Hughes:

A contract must be signed 100% of the time. As long as you incorporate NACHI's standard language into your contract you're fine. If you have any further questions, please do not hesitate to contact us.

Thank you.

[jferry]

That's a different question than the one you posted.

Your post said that if you couldn't "produce" the agreement, there would be no coverage, not if you didn't "have" an agreement. Big difference.

[Peter Hughes]

I could not copy this into the EMAIL, but feel free to read it !



Read Www.frea.com/application_app_renewal.pdf

[Joseph Hagarty, CMI]

Peter:

What specifically are you referring to?

[Emmanuel J. Scanlan]

Joe Ferry,

Quote:

How about if you change insurance companies? What just happened to your insurance on the inspections you just did?

Do you think your insured?
Yes. Obviously no one would ever change insurance companies if doing so meant you would not be covered for prior inspections. As long as you were insured prior to changing your carrier and have no knowledge that a prior inspection will result in a claim being made under the new coverage, you are covered for claims made under the new policy for any alleged negligent inspection conducted under your prior coverage.

According to the policy listed below:

Claims-Made Policy

- A “claims-made” policy protects the policyholder against claims or incidents that are reported while the policy is in force, or during an “extended reporting period”. The negligent act, error or omission must have also occurred during the specific timeframe set by the policy. Once the policy lapses or is cancelled, coverage will no longer apply to any past inspections, unless you obtain tail coverage.

If I currently have a "Claims-Made" policy and change to this "Claims-Made" policy when does the coverage start for the new policy? According to this document coverage starts when they receive your application and approve it. How does that cover incidents that may have occurred before the new policy starts? If I don't purchase tail coverage from the previous "Claims-Made" insurer how are previous incidents covered?

[Larry D. Kage]

Originally Posted by escanlan

If I currently have a "Claims-Made" policy and change to this "Claims-Made" policy when does the coverage start for the new policy? According to this document coverage starts when they receive your application and approve it.

I was able to set the start date to what I wanted, so coverage is continuous.

[Peter Hughes]

OK, for the sake of argument, you get a signed agreement.

Then 2 years later you need it and can't find it.

How is that any different than never having one !!

Do you think someone will say, oh sure, I signed that !!

I think it would be to our advantage to have NACHI get written agreements that would better protect both the Customer of the inspection and the inspector.

Next dumb question, why must it be signed?

The home inspection is not signed.

The inspectors agreements with the insurance is not actually signed. (you don't sign each and every agreement) It appears that by accepting and applying for the insurance, you actually agree to all the items and rules as outlined in associated documents that you don't actually sign. To me no different than what I believe should be acceptable to the insurance company by placing your pre - inspection agreement within your inspection report. Whereas if the client accepts the report, then they accept the agreement.

[Brian E. Kelly]

I sign each and every agreement, and print my Cert # (39975).

[Michael R. Boyett]

Originally Posted by phughes

OK, for the sake of argument, you get a signed agreement. Then 2 years later you need it and can't find it.

I think it would be to our advantage to have NACHI get written agreements that would better protect both the Customer of the inspection and the inspector.

Peter, you're a professional business person, put the procedures in place at your company to cover those type of circumstances. Why would you not be able to find a signed agreement? Don't you archive those in a safe place for possible future use? I don't look to NACHI to run my business for me and you shouldn't either.

[Peter Hughes]

Michael,

I hope you never experience a FIRE, A FLOOD, a Theft, Tornado, ETC. or just a cup of coffee that spilled on a document.

I'm just the messanger and you've been warned.

Good Luck,
Pete