How does this work? An Inspector in our area left the business and has recently returned. This inspector is marketing his business by giving $250,000 of Free E&O insurance to cover every Realtor that refers him to their clients. How does this work?
Some insurance companies offer wrongful referral coverage for brokers/agents that refer an inspector that has E & O insurance through the insurance company. Typically, no coverage is provided for any damages other than for wrongful referral.
If he is advertising that he carries E&O and covers the referring Realtor, don’t worry about him, he’ll be gone again soon…;-):D:D:D
This is not a factor here. Indiana state law has it clearly written that a real estate sales person (which includes Realtors) cannot be help responsible for the action(s) of the home inspector.
I don’t see anything that says they can’t sue them though!
This coverage covers the cost of defending the Realtor who gets sued with the HI.
Some Insurance Co’s do not allow Advertising this coverage as a marketing ploy.
Blaine, why does advertising E&O that indemnifies Realtors mean that he will soon be out of business?
I wonder if that insurance covers the broker since there is a good chance that the broker will be included in the law suite with the Realtor?
Allen insurance does.
FREA as well. It is simply a marketing tool, but I didn’t think an inspector would “spin” it that way. Or be THAT pro-active about it. The agent/broker indemnity is, as stated previously in this thread, in the event that the buyer (presumably) sues the agent for a negligent referral.