E&O bill for claim denied

I was surprised to get a bill from Elite for a claim that was denied. The bill was for the time the adjuster spent gathering information.

They’re gonna get your deductible one way or another!

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How much was it?

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you really can not win with insurance, they feel their business is to gouge us in fees , while keeping all of the money for themselves, they can’t even comprehend that we hire them to protect us. In Canada we mostly deal with Hub, so they treat us poorly as we have little options. I presently owe a $2500 deductible because a 1 year old roof leaked. Hub says unless I agree to settle, I would have to pay my own lawyer , court costs, and any possible.judgement. It was cheaper for them to settle, even though how could a 1 year old roof leak be anything other than the roofers fault. Also the roofer charged 7500 , while I chargrd 500. No part of me can understand how any judge in the planet could blame me. Yet Hub insurance could not have even the slightest concern about basically saying this should be my fault. fyi I have a multi inspector firm and am paying 850 per month for insurance, you would think hub would be loyal to me, or even.to.common sense, of which they seem to be short of, yep I am frustrated

Why was it denied?

$1,850, that is nearly the same as my annual premium. I’ve never heard of a carrier charging to defend a client. This was for a claim that was denied which is what puzzles me.

Wow Jeff. That’s a lot of money. You already paid Elite for insurance and gathering information on a claim falls into services you paid for when you paid that premium. I wouldn’t pay it.


Isn’t Elite Nick’s baby? I’d let him know about it and that you’re not a happy inspector/client.


Please report back with the results if you decide to contact Nick. Why have insurance if you have to pay a premium and pay the staff to work on a declined claim. Talk about a win win for the insurance company.


Hope some from Elite will explain, I’m up for renewal next month,


You’ll pay up to your deductible to defend a claim. Now your rates will also go up most likely.

You would think they would cover the defense of the claim because it is in their best interest; just like auto insurance.

Still curious why the claim was denied. That may explain a lot.

How do I contact Nick?

They were remodeling and found prior termite damage. The adjuster determined the damage in question was not visible or assessable. It appears that if someone files a claim it’s going to cost me dearly to get it an adjuster out there.

Please clarify … did they deny your claim or did they settle it in your favor?

No one can file a claim on your E&O but you.

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It sounds like the homeowner tried to make a claim against the inspector’s E&O and the claim was denied because the inspector could not have possibly seen inside the wall where the termite damage was later found. The carrier is trying to collect from the insured $$$ they spent on an adjuster sent to assess the damage and cost.

When people cannot explain to other professionals, I ponder how they prepare the actual reports and are able to explain to a layman. :see_no_evil:

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No one can “make a claim” on someone’s E&O policy but the party named on the policy. In spite of the rhetoric to the contrary, an E&O policy does not protect the inspector’s client. The policy protects the inspector from his client in the event he is negligent or is accused of negligence.

At the carrier’s discretion, he can protect the inspector by defending him against the claim or can protect the inspector by negotiating a settlement on his behalf. No one, however, can make a claim on that policy but the inspector.

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I’ve never heard of this before. Interested to hear Nick’s thoughts on it. I just signed up with them last month.

The termite damage was hidden so the adjuster told the client I was not responsible for items not visible.

The client contacted Elite and the adjuster they sent determined:

the termite damage was hidden so the adjuster told the client I was not responsible for items not visible.