This post is just a feeler.
Yesterday, I along with NACHI VP Keith Swift had the opportunity to meet with Insurance Carriers to discuss the high costs of E & O Insurance and continued working on a program to decrease costs.
Without comprimising the individuals in attendance nor the Insurance Firms being represented I am extremely pleased to report that preliminary (6 months) investigations by these two firms has indicated that claims are indeed down and that lower E&O costs may very well be in our future.
This posting is general in nature and its only intent is to get a general (real general) feel of how many would participate in a structured program to participate in a reduced cost E&O program.
The, program as proposed is based on a basic three tier system which tentatively goes like this:
Inspectors with less than three years in business who are not full members of NACHI - $2,000.00 (or less) per year for 1 million coverage, $2,500 deductible.
Inspectors with more than three years in business who are full members of NACHI - $1,750.00 per year for 1 million coverage, $2,500 deductible.
Inspectors with more than ten years in business who are Certified Master Inspectors (NACHI members only) - $1,500.oo (or less) per year for 1 million coverage, $2,500 deductible.
NOTE: The above are only samples based on what I surmised as average costs and are not at this time solidified. Costs ranging from as low as $500.00 up to $2,000.00 were discussed and bantered around.
Each insured would be held accountable for NACHI’s membership requirements at time of renewal. For instance - and this is only an example that is not cast in stone. A NACHI member has been insured as a Full Member but fails to meet all of the Full Membership requirements the following year. His rates may or could revert back to “Not Full Member” status and he/she must requalify as a Full Member to enjoy the additional lower rates. On the other hand - a NACHI member has been insured as a Non-full member but has obtained Full Member status during the year. His rates may or could be reduced the new insured year, etc.
Considerations concerning multiple inspector firms, carry-over coverage, and just about everything under the sun were discussed.
Both agency’s are rated A+ and both are already currently operating in all states. Both are fully aware of special considerations for California, etc. concerning coverage periods and back coverage.
What type of interest would we expect to see in this program? Please post or email your thoughts, suggestion, etc. within the next couple of weeks before I have another meeting.