Bill,
Did you get my e-mail?
Wow…it’s like watching a rebirth…
sheesh.
I gotta get out of here. Teched in the head today. sigh
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New User
Location: Pinson, AL.
Posts: 15
[RIGHT][/RIGHT]
Re: brand newbie
Yes Linus, I got it. Thank you for the help, it’s appreciated more than you know! BC
You’re welcome, that’s what we’re all about, sharing info and helping each other progress in this industry.
Welcome and Good Luck boys !!!
Mic
Why even carry E&O insurance unless it is required by your state? If you are operating your inspection business as an LLC, your personal assets are protected from being attached as a result of a law suit. So if anyone is ever tempted to sue your business, there are no “deep pockets” promising a payoff to the plaintiff so why would they bother?
Well not really. I would check with your attorney for legal advice but Mr.Joe Ferry has commented on this issue many times. I used to labor under that opinion as well. Look for post by jferry and also do a web search on the topic.
Good Luck!
“Suits” - I saw an ad on TV today for 2 “suits”, 2 shirts & 2 ties all for only $250.00.
“Suites” - Nickname for a Mail Boxes, etc, type of address. Generally about the same cost as a Post Office Box, ($70.00 or so around here) but they also have the capacity to accept shipments that require a physical address for delivery.
“Suites” - Nickname for Physical Space - vedddy expensive, but may be necessary for those multi-inspector firms.
LLC’s:
As I (a non-lawyer type {editorial comment about lawyers left out}) understand it.
You are Home Inspections, LLC
You do the inspection.
I can sue Home Inspections, LLC as the corporation(and go after corporate assets).
I can sue YOU personally as the person who did the inspection and go after your personal assets.
You are Home Inspections, LLC (a multi-inspector firm)
One of the employed or sub contracted inspectors do the inspection.
I can sue Home Inspections, LLC as the corporation (and go after corporate assets).
I can sue the individual inspector who did the inspection and go after his personal assets.
I CANNOT sue the owner of Home Inspections, LLC personally or go after the owners personal assets.
May be valid for my area, but you REALLY should pay for a consultation with a professional (lawyer) who can advise you on your area.
Remember how we always tell home buyers to get a professional opinion from a professional.
Perhaps more of us should follow that advice when it comes to our legal needs and consult a qualified lawyer IN OUR AREA!
Of course none of that addresses the tax issues between Sole Proprietor, LLC, S-Corp, etc. That part is best left to the advice of a qualified accountant who is familiar with the rules in YOUR area.
Spend the money. It’ll save you grief and money down the line. Kinda what we tell our clients.
Better to be detailed and thorough and quit worrying about lawsuits than to be a minimalist inspector constantly paying for mistakes and overlooked items.
Course some inspectors look at it differently.
Do lots of cheap inspections and make enough money to deal with a set percentage of lawsuits hoping that the big one doesn’t come along. They see it as a cost of doing business kinda like retails stores see a certain percentage of shoplifting and employee theft as a cost of doing business.
Your Life, Your Business, Your Choice!
Joe Ferry **sells **insurance! Don’t you think he makes a commission? I’m not saying his advice is wrong. But I don’t consider Mr. Ferry to be objective. Best to bounce the issue off an attorney who has no financial incentive to sell you a policy. It’s like asking a barber if you need a haircut. :shock:
Of course he does!(Has it always been so?)
If a friend or neighbor or family member asked you if they really needed a home inspection, what you you tell them???
How is that any different than Joe’s situation.
Of course anyone considering buying E&O should consider the various opinions on the subject and make an informed decision based on their comfort level and what they are putting at risk.
The difference is obvious. I am clearly a home inspector. I sell that service and people realize when they are speaking with me that I have a vested financial interested in the transaction. I wear a shirt with my company name on it. I am a licensed home inspector. Only a fool would not realize I want to earn their trust and business.
To my knowledge, Mr. Ferry has never made his relationship with insurance sales known. (I’ve clearly asked him that question and he chose not to reply. I can point you to the post if you are interested.) Instead, Mr. Ferry presents himself solely as a legal expert. Therefore, the unknowing might not be aware that Mr. Ferry has a vested financial interest in providing his “legal” advice. His advice comes across as objective, but it certainly is not and that fact is hidden.
It all comes down to discolsure. I do so. Mr. Ferry does not. (Anyone who fails to disclose financial relationships is being unethical. That’s what gets politicians in so much hot water.)
Note: I do not know for a fact that Mr. Ferry has a vested financial interested in insurance sales. But I believe that to be so and he has not denied it when asked pointedly. If I am wrong, I will retract these statements.
I agree with you completely about disclosure and that’s why I posted recently that ALL vendors who give opinions on topics that might result in increased revenues to themselves disclose that fact.
Perhaps Mr. Ferry will step up and address this issue?
Isn’t that also true of the barber or plumber or ___________ as well?
Why would you care?..
His prices are $1,000.00 less than my current policy and I will be renewing a policy with him whether he owns the entire insurance company or receives a referral…
Yupper!
Some folks do not think E&O is necessary. The author of this post is a professed “newbie” and was directed to Mr. Ferry for legal advice about obtaining this type of insurance. I was simply pointing out to the “newbie” that I believe biased opinions are offered by anyone who sells insurance but doesn’t make that relationship clear.
I’m all for low rates. I don’t dispute that the NACHI disount is a good thing.
I also believe E&O insurance to be a cost of doing business. I am due for a renewal next month and am thinking about the NACHI discounted program.