E&O Survey

[John Cahill]

Using the following logic. In states that do not require E&O, inspectors purchase E&O to protect their business and assets. They do not buy it to protect the consumer. In states where E&O is required it is justified in the name of the consumer.

Do states with mandatory E&O have more claims?

Do inspectors loose the ability to work because an insurance company will not offer coverage?

Thanks

[Roy D. Cooke, Sr]

Originally Posted by jcahill

Using the following logic. In states that do not require E&O, inspectors purchase E&O to protect their business and assets. They do not buy it to protect the consumer. In states where E&O is required it is justified in the name of the consumer.

Do states with mandatory E&O have more claims?

Do inspectors loose the ability to work because an insurance company will not offer coverage?

Thanks

These are not the questions asked on the survey

[John Cahill]

What I am trying to get at is "do states with mandatory e&o have more law suits?"

[John Cahill]

Hmmm on second thought that is not a good question. I bet most E&O companies settle before a lawsuit happens.

The question becomes more difficult. "Do states with mandatory E&O experience more claims for inspector compensation than states that do not have mandatory e&O?"

[Roy D. Cooke, Sr]

Originally Posted by jcahill

Hmmm on second thought that is not a good question. I bet most E&O companies settle before a lawsuit happens.

The question becomes more difficult. "Do states with mandatory E&O experience more claims for inspector compensation than states that do not have mandatory e&O?"

I am sure you are correct they settle with your deductable and then raise your rates as you have had a claim. Know of many cases where this has happed even when told not too as it was not the HIs fault.
You are asking questions that have been asked many times before and the only ones who try to give answers are HIs and many of these do not want others to know what has happened to them . I expect most information received will be far from complete.
I too would love to have some factual information .
Listened to NACHI lawyer Mark Cohen at the NACHI Canadian Conference and got the impresion that this varies from one state to another big time .
It also varies if the HIs are insured ,if the HIs are Incorporated.
It looks to me like trying to take a bite out of an apple swinging on a string , Dam near impossible.
My own openion is having insurance get more law suits advertising you have insurance increases this even more .
Having had long discusions with many lawyers and experienced HIs ,put in a limited liability clause in your Contract do not let any one know if you have insurance.
If asks turn the question around and ask the client why they wish to know this information .
Tell the client that HIs insurance is not to protect the client it is to protect the HIs. If they continue to trey and find out if I have insurance I run FAST away from this client
I do not want to do an inspection for these kind of people .
Listen close to the Hair on the back of you head if it feels bad it is bad. Leave
On your Inspections Write hard Talk soft and Miss nothing .

[Brian E. Kelly]

Does mandatory insurance increase litigation?

About as much as telescopes increase UFO sightings

[Roy D. Cooke, Sr]

Originally Posted by bkelly2

About as much as telescopes increase UFO sightings

Gee I wish you could have sat in and talked to the Lawyers that I have .
Now just think Inspector
(A) has $1,000,000;00 insurance.
Inspector
(B) has no insurance and very litte assets.

Do you really think a good lawyer would go after Home inspector (B) when he can see there is a good chance even if he wins will be not be able to get much money.

[Brian E. Kelly]

Never really enjoyed talking with Laywers too much Roy.
Now if your Lawyers have some Data to back up this Urban Myth, let's see it, untill then I think I'll have some Pop Rocks and Soda for lunch.

[Roy D. Cooke, Sr]

Originally Posted by bkelly2

Never really enjoyed talking with Laywers too much Roy.
Now if your Lawyers have some Data to back up this Urban Myth, let's see it, untill then I think I'll have some Pop Rocks and Soda for lunch.

Lets turn this around and can you show me facts to back up your thoughts .
I have tried for years to get more info and have had little success so I go on my instinct and have managed to get by for many moons some are Blue ones too.

I do know of two frivolous settlements that the insurance companies paid off instead of fighting.

(Nachi is great we can disagree and still be friends )
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[Brian E. Kelly]

Well Roy, I have spoken with many Lawyers over the years, and have found them to be rather myopic and lacking much real life experience, and or many expieriences that I have had. That being said I am sure there are some clever Lawyers out there.

Is that what you had in mind?????????

[dharris]

Did mandatory auto liability insurance raise the amount of lawsuits against drivers that caused an accident when the other innocent party in an accident was injured, physically or financially?

[Roy D. Cooke, Sr]

Originally Posted by dharris

Did mandatory auto liability insurance raise the amount of lawsuits against drivers that caused an accident when the other innocent party in an accident was injured, physically or financially?

Dan like many of your post's I tend to read them then ignore ,
Thanks for your thoughts .

[Roy D. Cooke, Sr]

Originally Posted by bkelly2

Well Roy, I have spoken with many Lawyers over the years, and have found them to be rather myopic and lacking much real life experience, and or many expieriences that I have had. That being said I am sure there are some clever Lawyers out there.

Is that what you had in mind?????????

I have used a lot of logic over the years and it always seems to be the thing for me to follow when I can not get the proof.
Seems like many home Inspectors are voting in that direction too.
Gee logic some times is the best way to go .
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[John Cahill]

Let me bring this back to center. They are passing mandatory E&O in Texas. Texas has a mandatory SoP. The Texas Real Estate Commission investigates complaints to that Standard. They favor the consumer. Anytime a ruling goes against an inspector it is labeled, by law, as negligent and incompetent behavior. That label is a death sentence in any subsequent court or arbitration proceeding.

I can take ANY inspection done in Texas, find a violation, get a ruling of negligent and incompetent behavior and cash the insurance check at the bank. The insurance company will NOT BE ABLE TO dispute the State opinion. They are screwed.

The E&O law in Texas is a gold mine.

I suspect such might exist in other states where State boards decide negligence.

The benefit of a jury state only is it is a battle of experts (bull****). However, in a state where a state boards decide compliance the inspector is totally and wholly screwed.

The Texas law will be devastating until it gets revised. The Texas Association of Realtors deny participation in this but I do not believe them. They want comprehensive inspections and miles of boilerplate disclaimer? Texas inspectors will give it to them. Poor consumer won’t know what to make of a report.

E&O was designed to protect business. When states take that and use it to protect the consumer it will fail.



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[Brian E. Kelly]

Originally Posted by jcahill

Let me bring this back to center. They are passing mandatory E&O in Texas. Texas has a mandatory SoP. The Texas Real Estate Commission investigates complaints to that Standard. They favor the consumer. Anytime a ruling goes against an inspector it is labeled, by law, as negligent and incompetent behavior. That label is a death sentence in any subsequent court or arbitration proceeding.

I can take ANY inspection done in Texas, find a violation, get a ruling of negligent and incompetent behavior and cash the insurance check at the bank. The insurance company will NOT BE ABLE TO dispute the State opinion. They are screwed.

The E&O law in Texas is a gold mine.

I suspect such might exist in other states where State boards decide negligence.

The benefit of a jury state only is it is a battle of experts (bull****). However, in a state where a state boards decide compliance the inspector is totally and wholly screwed.

The Texas law will be devastating until it gets revised. The Texas Association of Realtors deny participation in this but I do not believe them. They want comprehensive inspections and miles of boilerplate disclaimer? Texas inspectors will give it to them. Poor consumer won’t know what to make of a report.

E&O was designed to protect business. When states take that and use it to protect the consumer it will fail.



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Not the poll question John, but I will play along.
What happens now to HI's in Texas that are found negligent by the board that have insurance?
What happens to HI's now to HI's that do not have insurance?