E and O Insurance

Originally Posted By: Nick Gromicko
This post was automatically imported from our archived forum.



Where’s Chris Butler?



Nick Gromicko


Founder


dues=79cents/day.


I much prefer email to private messages.

Originally Posted By: John Bowman
This post was automatically imported from our archived forum.



gromicko wrote:
Where's Chris Butler?


![icon_lol.gif](upload://zEgbBCXRskkCTwEux7Bi20ZySza.gif) On his way to the bank.


Originally Posted By: jburkeson
This post was automatically imported from our archived forum.



Deleted… icon_biggrin.gif



Joseph Burkeson, RPI (Hooperette)


?Anyone who has proclaimed violence his method inexorably must choose lying as his principle.?
~ Aleksandr Solzhenitsyn

Originally Posted By: Blaine Wiley
This post was automatically imported from our archived forum.



Quote:
Relax... I am a participating inspector in the National Association of Certified Home Inspector's Consumer Recovery Fund which pays you up to 5 times the cost of the inspection if I fail to perform well.


I like the idea of the fund, but marketing it that way would be NUTS. One thing I have learned from the corporate world and from being self employed is that you NEVER state, imply, intimate or show that you are insured for anything.

As soon as someone gives a client the above statement, NACHI will be writing a check for five times the inspection amount to that client and many, many more!

We will have to be very, very careful with this.


Originally Posted By: rsmith6
This post was automatically imported from our archived forum.



Just my two cents…Nick, I think you have a terrific idea. E & O insurance is out of control in my opinion. If there is ANY alternative it seems worth exploring.


Bob


Originally Posted By: Blaine Wiley
This post was automatically imported from our archived forum.



Quote:


E&O Insurance Policy Limits:
Level A ($1,000,000 aggregate / $1,000 deductible)
Level B ($500,000 aggregate / $1,000 deductible)
Level C ($300,000 aggregate / $1,000 deductible)
Candidate (For new entrants into the profession) ($500,000 aggregate / $1,000 deductible)

All policies include:

* Unlimited number of inspections
* Both residential (up to 75 units) and commercial work (up to 20 acres)
* Referring Party Coverage
* Prior Acts coverage (upon approval)
* Underwritten by an A++ rated carrier
* Insurance program is admitted in all 50 states
* Simplified application
* 48-hour approval
* Complementary $10,000 Life Insurance Policy
* Benefits package
* Installment plan available
* Fast, Personal Service


Beginning Inspectors
FREA welcomes those inspectors who are new to the home inspection industry. As you may know, actuarial data shows that inspectors are exponentially more likely to get a claim during their first 12 months of business. It is for this reason that many carriers refuse to underwrite inspectors who are new to the profession. As long as applicants can show evidence of formal training from an approved school FREA can insure you under Candidate coverage. Once an applicant has had the candidate level of coverage for one year, he/she may switch to one of the less expensive levels (provided there has been no claims made against the applicant).

Candidate Coverage Includes:
$500,000* aggregate /$1,000 deductible E&O insurance
(NOTE: If you require $1,000,000 in E&O, it is available for an additional $300)
Risk Management Tutorial CD
Referring Party Coverage
$10,000 Life Insurance Policy (NEW!)
Benefits Package

Prices/Membership Fees
Coverage Type Level A Level B Level C Candidate
E&O $3295 $2995 $2795 $3550
Corporation $325 $300 $280 $325
General Liability $450 $450 $450 $450
WDI/WDO $250 $250 $250 $250
Radon $150 $150 $150 $150
5K Bond $75 $75 $75 $75
10K Bond $135 $135 $135 $135



Originally Posted By: gbell
This post was automatically imported from our archived forum.



Blaine


Very good observation. I had the same feeling when I first heard of this in Fort Lauderdale. After giving it further consideration I do think it has merit. You are correct it could become a big hornets nest if run improperly. This project has a long way to go. But with good planning and administration it could set a new industry standard.



Greg Bell


Bell Inspection Service

Originally Posted By: jburkeson
This post was automatically imported from our archived forum.



gromicko wrote:
I know. Somebody find an attorney who will handle both escrowed funds and administrate them. I'll put up the initial funding personally just to get them going. Once all the bugs are sorted out and it's running, I'll exploit the latter fund for marketing purposes... of course ![icon_smile.gif](upload://b6iczyK1ETUUqRUc4PAkX83GF2O.gif) .


I have a close friend here in Florida who is a very experienced litigator and one of the best persuasive speakers I know. Once we have something down on paper I would be willing to approach him with this matter. IMHO, we undoubtedly need someone who is reputable and experienced in working with courts and arbitration boards.

If we really work hard to make this happen the next possible step would be to have a large insurance underwriter (Lloyd's of London) accept the group as a 'captive' and cover us for any catastrophic (negligent) claims.

I believe this could be the fulcrum point in our continuing education and CMI policy, maybe only those among us who qualify would be covered. As part of this I envision a "Board of Experts" who are on call to accept field calls from any inspector who runs into a potential problem (claim) in the field and needs assistance on discovery or how something should be reported. These "Experts" would be NACHI members who have proven experience in their field. I would be willing to serve on the national board that would take up this matter for the membership, also I believe that Florida would be a great test state. The program could be employed as part of the statewide effort to show legislators that we are in fact proactive and worthy of being regulated instead of licensed. Comments ?


--
Joseph Burkeson, RPI (Hooperette)

?Anyone who has proclaimed violence his method inexorably must choose lying as his principle.?
~ Aleksandr Solzhenitsyn

Originally Posted By: Nick Gromicko
This post was automatically imported from our archived forum.



A consumer recovery fund could be run much like a warranty program (although we don’t fix anything, we just reimburse) with an understood cap at 4 or 5 times the cost of the inspection. Consumer participants could agree to that limit in return for this protection.



Nick Gromicko


Founder


dues=79cents/day.


I much prefer email to private messages.

Originally Posted By: gbell
This post was automatically imported from our archived forum.



I contacted Nancy Campiglia with the law firm of Akerman Senterfitt. I explained Nicks request to her and asked that she visit this thread. I asked if her firm would be interested in this type of project. She replied with a positive response. I forwarded her message to Nick. A meeting is going to be scheduled with their firm to discuss the viability and legal aspects of such a project.



Greg Bell


Bell Inspection Service

Originally Posted By: Nick Gromicko
This post was automatically imported from our archived forum.



completed on August 20th. Nancy is already working on this Consumer Recovery Fund thing and we’ll probably meet near the Tampa Bay or Central Florida Chapter meetings. I want to talk to them about using the Legal Defense Fund to indemnify real estate agents for marketing purposes.


Let's get this thing launched.


--
Nick Gromicko
Founder
dues=79cents/day.

I much prefer email to private messages.

Originally Posted By: Nick Gromicko
This post was automatically imported from our archived forum.



You guys understand that if we get this done… it’s all over for non-NACHI members. The shear marketing force of having a Consumer Recovery Fund for our clients and a Legal Defense Fund to indemnify agents would be just too overbearing.


![icon_smile.gif](upload://b6iczyK1ETUUqRUc4PAkX83GF2O.gif)


--
Nick Gromicko
Founder
dues=79cents/day.

I much prefer email to private messages.

Originally Posted By: Nick Gromicko
This post was automatically imported from our archived forum.



It’s going to make http://www.nachi.org/webseal.htm look like child’s play. We might even have to cap our membership size forcing new applicants to go on a waiting list until an existing member retires.



Nick Gromicko


Founder


dues=79cents/day.


I much prefer email to private messages.

Originally Posted By: dharris
This post was automatically imported from our archived forum.



[quote=“gromicko”]You guys understand that if we get this done… it’s all over for non-NACHI members. The shear marketing force of having a Consumer Recovery Fund for our clients and a Legal Defense Fund to indemnify agents would be just too overbearing.


Give me a break, Your recovery fund with a limit of 4-5 time the inspection fee, is going to be the thing to make nachi top other orgs
I think the states that have licensing requirements with insurance requirments may have another opinions

How many new members sign up when you post this and all your other BS?


Originally Posted By: tallen
This post was automatically imported from our archived forum.



I know my min. requirements are $25,000 bond


Dan in some states they have no licensing or min. standards.


--
I have put the past behind me,
where , however, it now sits, making rude remarks.

www.whiteglovehomeinspections.net

30 Oct 2003-- 29 Nov2005

Originally Posted By: tallen
This post was automatically imported from our archived forum.



Wow Dan is full of questions. Why don’t you answer them?



I have put the past behind me,


where , however, it now sits, making rude remarks.


www.whiteglovehomeinspections.net

30 Oct 2003-- 29 Nov2005

Originally Posted By: kmcmahon
This post was automatically imported from our archived forum.



My state has licensing requirements but no insurance requirements.



Wisconsin Home Inspection, ABC Home Inspection LLC


Search the directory for a Wisconsin Home Inspector

Originally Posted By: jwortham
This post was automatically imported from our archived forum.



Illinois also has licensing but no insurance requirements.


Originally Posted By: dharris
This post was automatically imported from our archived forum.



gromicko wrote:
It's going to make http://www.nachi.org/webseal.htm look like child's play. We might even have to cap our membership size forcing new applicants to go on a waiting list until an existing member retires.


GOLD??? I just signed up for my ashi PLATINUM seal


Originally Posted By: sramos
This post was automatically imported from our archived forum.



I like the idea of lowering our costs for E&O. However, $1500 does not even buy a furnace? If we are going to do this, we should make it meaningful. In California, home prices are 500k and up. $1500 won’t even cover a good faith deposit…



Steven Ramos


EnviroVue Home Inspection


866-541-2883