Insurance Question

Hello Ladies & Gentlemen,

Is anybody using Lockton-Affinity group for their E&O? I have been with Tutor for a while but I recently received a quote from Lockton and they seem to be the better value. Locton is rated A while Tutor is rated A+ Superior. If anyone has any insight about this company I would appreciate hearing your comments.


Curtis Adams
C.H. Adams Home Inspections

We switched to them this year after a bad renewal experience with Allen Ins.

I can’t tell you how good they are yet because we have not had any claims. All insurance companies are great until you need them to stand up for you. That’s when they get weak in the knees.

That’s what I am afraid of. I haven’t had any claims either but my current company wants to raise my preimum about $250.00. I am somewhat new going on 5 years in the business with 400+ inspections but with my clean record I don’t understand the raise in preimum.

Thanks for the reply.

InterNACHI recommends Elite MGA and the Elite InspectInsure program, as they are our preferred insurance resource. Please visit to get your quote today or ask a question at InterNACHI members receive a special association discount.

Hi, Pamela.

Can you tell us how many people you insure and how many claims you addressed against them in 2010 and 2011?

Good luck.

Great question I do hope it gets answered .
Just maybe this company could be the best in the industry with Comunicating with the home Inspection industry… Thanks … Roy

I hope Pam is able to humor you and provide this data. Because then you will have solved the riddle of the sphinx, found the holy grail, and unlocked the doors to an entirely new outlook on life…

Like you, Ben, Pam is quick with the many ways she can benefit a home inspector.

Also, like you, she has no idea as to how many have actually ever needed her services compared to the number who have paid for them.

Interesting coincidence.:wink:

There are many rumors floating around about inspector E&O insurance. Rumor has it that it is the coverage … not the inspection … that invites the lawsuit. Rumor also has it that the majority of settlements rarely exceed the deductable.

Only you and Pam have the numbers that would discredit such rumors as these (and others) … but they are never available. I wonder why that is.

Do Insurance companies publish this type of list for other industries? auto,fire,flood?

Like this?

Thanks James great link

I and others have asked this question here in Canada since 1999 ,
I expect others have asked this question long before that
I wonder why they all have evaded giving us any info.
We pay and never get a proper answer.
I see info on life Insurance ,medical,car, home But no way can I find any facts on Home Inspectors .
I get Info from BBB and home Inspectors complaints are way down no the list.
Why are we denied the truth about our Industry.
I am 12 years claims free and I know many others who are also claims free.

Read this, Roy.

I use them. No problems

Jim - I was just in St. Louis with one of our panel attorney’s, Joe Denneler, who did a two-and-a-half hour presentation on risk management in front of roughly 75 inspectors. I wish you had been there to see it because he does a great job discussing various claims that he’s defended (he’s an actual home inspection trial lawyer) as well as other risk management topics. It was an ASHI meeting so I’m sure that it not only would be out of your presumable geographic range, but also a fundamental conflict in terms of assoication. We did, however, attend a New Jersey NACHI meeting on Tuesday night where Joe did a similar presentation and I think it’s safe to say that everyone really enjoyed it.

I don’t need to belabor the issue of the claims data and me not having it in a presentable form at my fingertips. As you have been told time and time again, I’m not the insurance carrier but that is never good enough. Oh well…

That article you provided a link to had some useful information and I know my attorney’s would rather try a case in front of a jury any day rather than mediation or arbitration. Before the obvious response of, “of course they would, they make more money doing it that way” is posted, money has nothing to do with it. According to Joe, juries tend to get it right as long as the facts are presented by a competent attorney.

As for arbitration can be a good deterrent for a claimant who thinks that an E&O claim is the same as an auto insurance claim where the insurance company simply cuts a check and is done with it. Common misconception. Once the buyer knows they have to go through arbitration, they might be less inclined/motivated to squeeze money from the inspector (insurance company). But it doesn’t help when inspectors list CAS, who is no longer in business, as their arbitrator which invalidates the clause.

With regard to the deductible, FREA’s is $1,000… If the inspector can settle it himself for that amount, more power to him. If they are my clients, I suggest giving me a call so I can make note ot if it, but why involve the insurance company? Better get a full release signed though.

Well it seems I have touched on a touchy subject. I have read all the previous comments and have decided to make my decision based primarily on my lack of time to do the proper research. I have decided to stay with my current carrier (Tutor) for the time being. Thanks for all your help.

I hope to see this topic continue as I too would like to know if I am getting my monies worth paying for E&O insurance. With my current company I always feel that I am paying for something while not being sure they will be there should I need them. That was one reason I was thinking about changing to: Home Inspectors Solutions Insurance Program
(Lockton Affinity) There advertising indicates they have on staff professionals should you need to ask a question.

Curtis Adams

Curtis – it’s tough to really know what you’re getting if you have a relationship with your provider that revolves only around paying your bill and renewing each year. If that’s all it is, you’re a great client from the insurance carriers perspective. What you DON’T know is what will happen if you get a claim. Who is the actual insurance carrier responsible for your policy? Are they and “admitted” carrier? Do they have attorney’s well versed in home inspection defense? Will you rates go up if you have a claim? Will you get dropped if you file a claim? Does the clock start ticking on the deductible the minute you report the claim? These are important things you should know.

I suppose that the only thing that is more rare and difficult to find than a lawyer who does not encourage people from having insurance coverage from which he repays his student loans … is an insurance salesman with statistical data to support his claims.:wink:

Doesn’t change the fact that my phone rings all day from insureds who have been served with a lawsuit or have a potential lawsuit on their hands. I got news for you… inspectors are not perfect and there are plenty of instances where they make legitimate mistakes and are very fortunate they have insurance to cover their @ss. There are also plenty of quality inspectors out there who get sued as a result of their client not understanding the scope of their job and refuse to accept that said inspector didn’t bring his crystal ball to the inspection. While the inspector has no realistic liability, there is a process in which that needs to be established unfortunately. I’d love for you to come field phone calls in our office for a day which might help you realize that insurance does serve a purpose.

How many calls per day? We can multiply that by thirty for a monthly figure, and multiply that by 12 and get an annual number. We’ll start with that, and go from there … :wink: One call per day would represent approximately 365 lawsuits per year … and a phone that “rings all day from insureds who have been served with a lawsuit or have a potential lawsuit” would be an even greater number than that, wouldn’t it? And that is just from people you cover with your insurance policy which represents just a small fraction of the number of home inspectors in the nation.

Actually, Ben … if your statement is true — that your “phone rings all day from insureds” — it could actually support the rumor that it is the fact that they are “insureds” that invites the suit. If not, it seems that your phone would ring “all day” from those needing or wanting to be insured.

Real numbers would help to clear that up, IMO.