E&O Insurance

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1

Originally Posted By: dscott2
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Hello everyone, I am a new member and this is my first post! I am trying to find E&O insurance and saw that there were several to pick from. I have never had this type of insurance before and was wondering if anyone could recommend one or two?

2

Originally Posted By: jcampbell
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I didn’t want to leave you hanging… FREA and ALLEN appear to be the bigger ones mentioned on this board. Feel free to do a search and you will be able to read forever about different views on various companies. In addition, certain companies offer NACHI members discounts so search the http://www.nachi.org/deals.htm

–
Jeffrey S. Campbell


http://www.maineshomeinspector.com

3

Originally Posted By: dscott2
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Thanks Jeff. I figured there would not be an easy way. I am one of those people that try to learn from other peoples mistakes. I was hoping someone had already figured out who had the best deal. I guess I’ll have to do the leg work. Thanks though.


Dennis

4

Originally Posted By: dbowers
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Dennis -


Different deals are good for different people. FREA looked good until I realized their base rate covered the individual not his/her company. Add on another $300 or so to cover the company also.

Then I realized that to get the base rate I had to write 1 big check or let them take automatic hits on my credit card every month (I had a bad experience with another company 4 years ago on that and don't do that).
Add on another $300 or so to spread out payments over 7-9 months.

Then I realized that there was no "Add-On Fee" for my 2nd inspector - With FREA each inspector has to acquire his own policy. Now I'd just have to "Double" my own rate to cover both of us.

At that point I realized the FREA base rate wasn't that good a deal for ME. Nothing wrong with FREA, just not right for me. It maybe right for you or for someone else.

Thats what the guys are saying - each of us has to do our own shopping.

5

Originally Posted By: escanlan
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Hello Dan,


I understand that FREA also does not cover any type of phased new home construction or draw type inspections. Was that mentioned in your FREA policy? I tried to get a copy of the policy to read its coverage and exclusions but FREA will not provide it until you sign on the dotted line and pay your money.

Thanks!

Manny (Emmanuel) Scanlan

6

Originally Posted By: cbutler
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Mr. Scott,


you are more than welcome to call and speak to me personally about any questions regarding FREA.


Mr. Bowers, I am sorry to see that you did not care for our services and that they did not fit your situation. Like you said, to each his own for solutions and look what is best for you and your business. I couldn’t agree more.


A couple of items I wanted to clarify with you, are you the only inspector for your business? If you are then you do NOT need to name your business on the policy as we will duly defend you and your business no matter how it is set-up and you are the ONLY one doing inspections for your business. Thus the Corporate coverage rider (business name) would not be necessary.


Now if you have an employee, independent contractor or John Smith covers your phones while you are on vacation and answers them as Bowers inspections services - then someone else is doing an inspection under your business name and then you would get the Corporate coverage rider for your business name. And it is a small cost to name the business of 10% to do so.


Now you also indicated that there is an “additional” charge for a second inspector - true - but it is a completely separate policy in that individuals name. Allen as an FYI charges $1,600.00 for each additional inspector now - and considers an apprentice an inspector now as well per one of newly insured’s from NJ.


You also indicated the cost of going on the payment plan - as we are not an insurance agency or carrier - we have to pay the carrier immediately for the insurance and if someone chooses to go on the payment plan that we extend as a courtesy then there has to be a cost associated for it. As all of our competitors do the same thing to go on a payment plan - so no difference there.


The BIG difference is we do NOT charge for surplus lines fees, taxes, or broker fees like our competitors.


Mr. Scanlan,


as you are in Texas and Allen does not insure there (who is the only one that I know of that offers new home construction - let me know if someone else does) your point about us not offering would be…


We do not offer phase construction coverage - as the Home Inspector is viewed as a sub on the active job site as the home has not been completed; and you would be named in a class action lawsuit by the homeowners at a later date against the builder and ALL of the subs who ever walked on that job site would be named in the suit. Thus, any inspection done prior to the home being “released” (usually called a certification of completion) by the builder to the homeowner would not be considered a home inspection and actually be a phase inspection and you would be open to a very big lawsuit by being on the property and in the courts eye’s you would be just another sub on the job be it one, one week or one hour…


As for you getting a policy to read like I explained to you over the phone we have had to many issues with competitors and the like that have used it inappropriately by contacting our carrier trying to write business through them directly and eliminate us. What would you do to protect your business interests?


As we insure well over a couple hundred inspectors in Texas you can ask one of them if you attend a TAREI meeting or ask me to bring you a copy to review in October when we have a representative at the TAREI show. Thanks for helping us get the paperwork in order 2 months ago with the insurance department of Texas. As someone in the office that our insurance agency utilizes misplaced the paperwork in the wrong file for the renewal of the RPG for Texas.


Sincerely,

–
Sincerely,


Chris Butler


(Former) Director of Membership @ FREA


chris_butler32@yahoo.com

7

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


Quote:
Thanks for helping us get the paperwork in order 2 months ago with the insurance department of Texas. As someone in the office that our insurance agency utilizes misplaced the paperwork in the wrong file for the renewal of the RPG for Texas.


You are more than welcome. Glad to see that FREA is now operating legally and responsibly in the state of Texas.

Quote:
As for you getting a policy to read like I explained to you over the phone we have had to many issues with competitors and the like that have used it inappropriately by contacting our carrier trying to write business through them directly and eliminate us. What would you do to protect your business interests?


You have already told me who your carrier is. And as I have told you here in the state of Texas, by law, we are required to purchase our insurance through registered agents. As for your competition using the information that I certainly do not understand??? Underwriters have their own methods of dealing with agents/agencies and strike their own deals. As a large purchasing group your underwriter may cut you a little more slack on price because of your volume. A small agent probably would not get a better price. So I really don't understand why FREA tries to hide behind that reasoning??

As for "protect your business interest", any honest company has nothing to hide!! I have already obtained quotes from other agencies and they have provided a copy of the binder and terms. Only FREA refuses to provide a copy of the terms. What's the real reason??

Quote:
As we insure well over a couple hundred inspectors in Texas you can ask one of them if you attend a TAREI meeting or ask me to bring you a copy to review in October when we have a representative at the TAREI show.


Now that makes absolutely no sense!! You are willing to authorize any other member to provide me a copy of the binder and terms for my review as well as allow me to view it at the TAREI show in October. So what is the real reason you can not send a copy now?? Do you feel I'm a secret agent spy for your competitor (LOL)???


Quote:
We do not offer phase construction coverage - as the Home Inspector is viewed as a sub on the active job site as the home has not been completed; and you would be named in a class action lawsuit by the homeowners at a later date against the builder and ALL of the subs who ever walked on that job site would be named in the suit.


Are you now a Texas lawyer too? Can you please provide the precedence that prevents a homeowner from not suing the inspector in a separate lawsuit?? Please correct me if I am wrong but how does an Inspector become a sub of the builder when the Inspector has a separate contract with the home purchaser???

Chris you really slay me!! I was raised to believe the very basic credo that any honest company has nothing to hide. I have dealt with many companies in my time and the ones that keep secrets are generally the dishonest ones. Not to say FREA is in that category but your actions certainly indicate hidden motives and intentions. What are they??

I'm told by you that I can have a copy of my policy when I sign on the dotted line and pay my money. I've asked you in the past and been told that when I sign if I am not happy I can get a prorated amount back. But by then I've paid a large amount of money just to find out what every other carrier and agent gives to me for free to review. It does not make money sense.

By the way I have spoken with Allen and they are now working on Texas as a market and hope to be there very soon. Yes Allen Insurance Group does have occurrence based policies and when it is all said and done their rates are much less expensive than FREA.


Emmanuel Scanlan

Knowledge is power, but sharing knowledge brings peace!
8

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


Mr. Scanlan,


I just don’t have the time when you perceive things one way and they are another.


If you liked to take shots at me personally about my ethics and professionalism, my e-mail is listed below…


good luck…

–
Sincerely,


Chris Butler


(Former) Director of Membership @ FREA


chris_butler32@yahoo.com