Thing are getting ridiculous around here with how much insurance costs. I’m paying about 350 in insurance a month and my insurance company just keeps pumping the rates up every year. The real kicker is there’s pretty much only one insurance company around these parts. Totten, I know there’s one or two but my broker even says their getting out of the home inspector insurance game and I know internachi isn’t coming around any time soon. It’s only getting harder and harder for new inspectors to get into this industry even if they’re talented. At this rate in just a few years it’ll be 500 a month.
you are getting a bargain, I was paying 500 monthly years ago in NB, now I have 2 other inspectors, paying 850 monthly now, criminals really
I have been paying the same rate for years. >< $4500.00.
I have been told fist hand Robert, insurance brokers are losing there apatite for home inspector E&O.
Personally, I think more claims is behind higher premiums for new inspectors.
I wonder how the multi inspection firms insurance premiums are faring? They take in the new inspector overflow.
Holy crap that’s insane! You through totten as well?
that sucks Guys, I only pay $31.75 a month for my E&O and about the same for my Liability
When I started 11 years ago it was $1800./year, 2021 was $4500. I asked on this forum several times when Nick will save the day!! All I hear is crickets!!
Gilles Larin, InterNACHI Quebec founder, now working with InterNACHI proper, had an brokerage reduce insurance under scheme they devised. My $4,500.00 was reduce to under $3,000.oo but that was short lived. As InterNACHI Quebec grew, so did New inspector claims.
I was surprised and talked to Gilles saying why do you want free insurance. Make fiends, be liked? Its new inspectors that initiate the lion share of claims. Sure enough I heard Quebec was the E&O claims capital of Canada.
Look, you want to put on big boy paints and be a business, pay. Can’t pay, find another vocation or work for someone.
I was quoted a premium of $946 for the year by Elite MGS through InterNACHI. Am i missing something?? Why are you guys paying $4500?
Welcome to the MB.
Where you situated, Justin? The I heard, Elite MGS is not in Canada.
In general rates in the US have gone down quite a bit over the last 20 years. Back in the early 2000s when I first bought/took over my company from the last owner it was around 7K/yr. I’m now paying about $3200/year which includes GL and E/O (5 inspectors, +/- 1200 jobs/yr).
I agree $4500 is crazy but I don’t know a lot about how things in Canada work.
It’s the metric garbage. $1,000 Canadian is worth $5 in the US
Insurance is all about sharing the risk. If a carrier expects to pay out $100 over the year in claims and can sell policies to 100 people, the premium will be $1 per year for each policyholder with a few extra cents added for profit. It’s pretty basic.
The problem you guys have in Canada is the drive to limit home inspectors by saddling wannabe inspectors with expensive courses and stumbling blocks that (as you all know) are intended to limit competition. The more competition you eliminate, the fewer policyholders there are to share the risk with you … thus, the higher premiums.
When licensing was started in the US, those pushing it had the same intent to limit their competition as well. Unfortunately for them, it created the reverse condition where the bar was set so low that the floodgates were opened up and the brand new guy still learning which end of the flashlight to point into the shadows had the same license (aka “qualifications”) as the 25 year seasoned pro. Lead brokers helped them start up bare bone businesses with little to no capital in exchange for private data about their clients. Instead of eliminating the competition, licensing actually created it and legitimized it… thus, the tsunami of new home inspectors added to the risk pool resulting in lower rates.
Bottom line: You cannot have it both ways. Fewer home inspectors will equal higher E&O premiums. It is a simple matter of mathematics.
I have been negotiating insurance since 2007! In 2017, I even went to Lloyd’s in London to make some new contacts. Since that time, owing to facts pertaining to risk, such as: a) terrorism; b) natural disasters; c) Brexit; d) COVID,; e) Legislation, as well as local issues such as claims (most without merit), two major effects: 1. Fewer insurers in the E&O field. 2. Premiums are skyrocketing!
Let’s recognize a major difference between E&O insurance in the U.S. and in Canada! And InterNACHI’s insurance company does not insure in Canada! There are fewer and fewer insurers in Canada and they have the leisure of increasing premiums with little or no competition! For example, Ontario inspectors face a doubling of premiums (with no claims) from $4,000 to $8,000 as of now! Québec now has 2 insurance companies writing E&O and one will most likely cease doing this!
In my turf, Québec, I have been negotiating with several brokers, as I usually do, and am expecting a substantial increase in November!
The only solution here is more competition, reminding that in Canada, every province requires its own permit! So unless you “take over” an existing broker with permits across the country - or at least in the major population areas - you need to “start from scratch”! No magic button here!
Outrageous E&O costs! Just one of the reasons I retired.
Unfortunately, retiring will not shelter you from a future lawsuit here in Québec, where there is no “Statute of limitations”! And currently, an inspector can only be insured for one year after retiring! Not good!
We are attempting to change these through representation and lobbying…
My company was an Ontario Corporation, which is now closed. No one left to sue. Besides, I retired 5 yrs ago. Never got sued!
yeah, just noticed that your guys are in Canada. Im in the states, Illinois to be exact