Best E&O Insurance

(Billy Clark) #1

I am up for renewal and my previous insurance lost there contract. They are now wanting to charge me $1400 more then what I was paying. I need help and am looking to save some money.

(Todd S. Schwalbe) #2

It is all a scam we pay $6k a year and there is so many outs for the insurance company not to pay. The only reason I have it is the realators like the refferal coverage. There is no such thing as good insurance its like vegas and the odds are in their favor. Good Luck.

(Russel Ray) #3

Check out FREA. I think they have the best coverage for the individual inspector.

(David P. Valley) #4

I must agree...

I just re-newed with FREA, simply because there are no other insurance proposals out there that'll beat FREA's. I recently contacted several major Insurance carriers before I decided to re-new and not one carrier could come close to what FREA offers.

The choice is yours...

(Blaine Wiley) #5

6 K per year Todd??!!

Do you get 20 referrals per year simply because of the Realtor coverage just to cover that?

Realtors E&O covers them anyway, and they pay a bunch less and get sued more. Go figure!

(Kelley Fulton) #6

Ditto... I have been shopping for two months. FREA is the dollar for dollar best deal. Not to say it is a good deal, just the best one I have found. :) ;)

(Bill Emelander) #7

I've heard allot of good about FREA. I'm with Allen and up for renewal, I checked with FREA they were close. Only $200.00 higher. When you pay $3372.00, $200.00 isn't much higher if it's the policy your looking for.

Bill

(David P. Valley) #8

It may be an additional $200.00, but check the deductibles.

FREA is has lowered there's to $1,000.00.
Allens is approx. $2,500.00

Hopefully, (if your thorough) you'll never have to worry about deductibles anyways.

(Leonard E. Ungar) #9

Hi! Everyone;
Did any of you people check the E&O that you can get thru NACHI ??????????
I think it's very resonable compared to Allen and Frea.
Since you are all Nachi members why not take advantage of it or am I missing something ????????????????????

Regards Len

(Kevin P. Williams, RETIRED) #10

Best E&O Insurance Is there such a thing ?? :(

(Kelley Fulton) #11

Len,
1. It is still not available in most states.
2. The deductible is $2,500
3. The FREA $1,000 deductible is only a few bucks more.
4. The tail insurance adds to the bill if you switch.
5. FREA customer service is pretty good.

Just FYI. ;) I'd jump ship if there were a reasonable raft to land on. But I haven't been able to find one. My friend is an electrician, he carries $1M Professional Liability for $500 per year. So what gives? His exposure is way more than an inspector's.

Kelley

(Joe Ferry) #12

  1. It is available in 25 states and will soon be available in 50 states plus Canada.
  2. There is a choice of deductibles: $1500, $2500 and $5,000.
  3. If you want a lower deductible, call me.
  4. You do not need tail coverage if you switch. The retroactive date covers your ... well ... it covers your tail.
  5. The more NACHI members take the NACHI program the more influence we will have.

A. I doubt that what your electrician friend has is Professional Liability. What he had is general liability. He's not giving a professional opinion on the systems in a home, he's wiring a house. Not rocket science.

(Russel Ray) #13

Different exposures for different companies in different states will result in different rates. So it always pays to price shop, just like our Clients do when they go searching for a home inspector.

I had a home inspector hang up on me, yelling into the phone, "You get what you pay for!" Anyone had an insurance company tell them that? Or the gas station? Or the grocery store?

(Bryan Wooddell) #14

Joe - Any thoughts on when the NACHI E&O will be available in Idaho?

FYI... I received a bid of $2600 for $100K w/$5K deductible from Swett & Crawford.

As a FNG (Frickin New Guy as I am called by the locals), it is a bit confusing whether or not to actually carry E&O. Has there ever been a poll done on the site about types of insurance carried (i.e. E&O, Gen. Liability, Bond, etc.)? Or does everyone pretty much carry E&O?

(tneumann) #15

Bryan go here....

http://www.nachi.org/forum/showthread.php?t=1555

Looks to be about 50/50 right now.....only about 60 votes though....sigh.

(David P. Valley) #16

I contacted them last month. They couldn't beat FREA's proposal.

(Dan Bowers, CMI, ACI) #17

FREA looked better until I realized that I was a corporation and wanted to pay this MAJOR EXPENSE over 7-9 months like all other carriers will do. At that point I had to add another $500-$600 to FREA's fee to compare against Allen. At that point they were neck & neck. Allen's deductible was $1,500 if you use a release of liability clause (which I do).

Then since I've thought about a 2nd person working with me FREA wanted to sell them their own policy - SO it was no contest. Allen it was.

(Russel Ray) #18

I know I've said it many times, but if you are an individual, FREA probably cannot be beat.

If you have multiple employees, there are better choices all things considered.

And if you are a franchise, the partnership your franchisor has set up with its provider probably cannot be beat because of all the fine print that one has to add into the insurance to make it palatable to the franchisor. A hundred here, a hundred there. . . . After lots of hundreds have been added in to FREA, Allen, etc., the franchisor's insurance partner looks really, really good.

I compare each year in March (my insurance comes due in June), and I regularly get "individual" quotes of $3,200 per employee (which puts me in the $22,000 annually range) to $17,600 per employee (yeah, right). My franchise insurance came in at $5,200 (year 1), $4,400 (year 2), $4,400 (year 3), and $4,400 (year 4), and $4,400 (year 5). It'll probably go sky high this year since I made it past year 5. :D