Insurance Questions

(Eddy Glavin) #1

Hey All,

The states of Massachusetts and New Hampshire both require a minimum of $250K E&O and $250k GL insurance in order to be licensed in each state.

I have several quotes I'm trying to weight out the pro's and con's on.

I'm as green as they come in the world of Home Inspection. I have my educational credits and passed the NHI exam.

I'm being offered several options

500k coverage with a 2500 or a 5000 deductible
or
300k coverage with the same deductibles

The costs go from around 1k to 2k

How much coverage do I need to start out with and do I need the low deductible?
Obviously I have things to protect. A home and such. Am I putting myself at risk if I don't carry a million dollars of coverage to start with?

I'm I covered by an employers insurance when working under or for them.
Massachusetts requires us to do 25 inspections under a licensed inspector. Am I covered under that inspectors policy while on those 25 inspections?

Any help is greatly appreciated.

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(Nick Gromicko, CMI) #2

www.nachi.org/insurance

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(Eddy Glavin) #3

While I appreciate the advise heres the the thing.
Ive already got a lot of money invested in this venture as it is..
Between school, testing, licenses etc I'm thousands of dollars in and thousands of dollars away from even making a dime....I'm not looking to get rich over night and trying to be realistic I know that IS an investment in myself and it will cost money to make money.

The insurance costs alone will run me 1 to 2k just to get an apprentice license (in Massachusetts) now toss in the interNACHI costs.....
I absolutely appreciate and see the benefits of this organization and hope to be a part of it in the very near future but I have so many steps and costs ahead of me before I can even start making the invested money back.... So I'm spending money as smart as possible.or as best I can...

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(Nick Gromicko, CMI) #4

I don't see it quite that way. You can literally purchase nearly every product and service the ENTIRE inspection industry has to offer... EVERYTHING... for less then the cost of one used pizza oven. I can't think of many businesses that requires so little initial capital.

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(Eddy Glavin) #5

I'm not questioning any of that....

I just want to spend money as wisely as possible and looking to see what most experienced and unexperienced alike carry or feel is safe and reasonable.

Opinions on coverage, costs and deductibles..

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(Michael W. Altizer, CMI) #6

[quote="gromicko, post:4, topic:117250"]

I don't see it quite that way. You can literally purchase nearly every product and service the ENTIRE inspection industry has to offer... EVERYTHING... for less then the cost of one used pizza oven. I can't think of many businesses that requires so little initial capital.
[/QUOTE]

I have never laughed so hard in my life. Explain that to me, please.

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(Roy D. Cooke, Sr) #7

[quote="Eddy_Glavin, post:5, topic:117250"]

I'm not questioning any of that....

I just want to spend money as wisely as possible and looking to see what most experienced and unexperienced alike carry or feel is safe and reasonable.

Opinions on coverage, costs and deductibles..
[/QUOTE]

Welcome to the real world ,
You got to spend it to make it . We all have come down that road .

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(Eddy Glavin) #8

No offense but .....why
Why the sarcasm and negative general BS.
Im 50 not 25, I asked what I thought was a lagit question on a forum that boasts about its helpfulness and I get a sales pitch and nasty comment.
How's this, I live very successfully I may add in the real world...But thanks anyway...I got what I needed...

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(Nick Gromicko, CMI) #9

Don't sweat it Eddy. We InterNACHI members like to take shots at each other, all in fun.

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(Nick Gromicko, CMI) #10

[QUOTE]
I have never laughed so hard in my life. Explain that to me, please.
[/QUOTE]
I'm just trying to point out that our industry vendors who sell everything from software to flashlights, can't come up with a total package for home inspectors that costs more than a used pizza oven.... thus it's a business that doesn't have much startup capital requirements. It takes at least $80K to open up a pizza shop. There isn't $80K in vendor products in our entire industry. If you have $10K, you can buy everything our industry has to offer from brochures to ladders.

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(Craig Butler, #468) #11

I just received my NH state license last fall. They told me E&O was not required in NH. I bought it anyways, because I did not want to risk the liability of it. Did the law change or did they tell you false info?
I spent about 1400 for a liability and E&O package through an insurance company in NY (contact David Wicker - his is on InterNACHI). None of my local insurance agents could even come close.
Craig

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(Michael W. Altizer, CMI) #12

[quote="gromicko, post:10, topic:117250"]

I'm just trying to point out that our industry vendors who sell everything from software to flashlights, can't come up with a total package for home inspectors that costs more than a used pizza oven.... thus it's a business that doesn't have much startup capital requirements. It takes at least $80K to open up a pizza shop. There isn't $80K in vendor products in our entire industry. If you have $10K, you can buy everything our industry has to offer from brochures to ladders.
[/QUOTE]

Okay got it, thanks for the clarification. I agree with what you said and years ago, you and I spoke about a similar matter and you told me nonsense, do it this way. Thank you for that advice it has served me well. I apologize for laughing so hard, I didn't even think commercial. I left Walmart yesterday and almost bought a pizza oven through them. Remembering yesterday and reading your first post, I lost it and busted out laughing. I needed to laugh, it felt good.

Oh and Nick Gromicko, I just wanted to say thank you for everything that you do for our industry and for us as inspectors, as well. We all have spent thousands of dollars throughout the years for this industry that we love so much. I'm not putting my money anywhere but back into InterNACHI and Inspector Outlet, no need to go anywhere else.

Love ya'
Michael

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(Brian C. Burleson, CMI) #13

[quote="cbutler2, post:11, topic:117250"]

I just received my NH state license last fall. They told me E&O was not required in NH. I bought it anyways, because I did not want to risk the liability of it. Did the law change or did they tell you false info?
I spent about 1400 for a liability and E&O package through an insurance company in NY (contact David Wicker - his is on InterNACHI). None of my local insurance agents could even come close.
Craig
[/QUOTE]

E&O isn't required in NH. Don't know where he got his info, but it looks like he's looking to do business in both MA & NH, so he needs to cover MA's insurance requirements anyway.

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(Ian W. Mayer, CMI) #14

[quote="gromicko, post:10, topic:117250"]

I'm just trying to point out that our industry vendors who sell everything from software to flashlights, can't come up with a total package for home inspectors that costs more than a used pizza oven.... thus it's a business that doesn't have much startup capital requirements. It takes at least $80K to open up a pizza shop. There isn't $80K in vendor products in our entire industry. If you have $10K, you can buy everything our industry has to offer from brochures to ladders.
[/QUOTE]

Buy a top of the line IR camera and in class training on how to use it and you're over $10K right there.

Other than that I agree with you.

For insurance, I use the link Nick provided myself.

It's not just cost, it's quality.

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(Tim Spargo, CMI) #15

[quote="Eddy_Glavin, post:1, topic:117250"]

Hey All,

The states of Massachusetts and New Hampshire both require a minimum of $250K E&O and $250k GL insurance in order to be licensed in each state.

I have several quotes I'm trying to weight out the pro's and con's on.

I'm as green as they come in the world of Home Inspection. I have my educational credits and passed the NHI exam.

I'm being offered several options

500k coverage with a 2500 or a 5000 deductible
or
300k coverage with the same deductibles

The costs go from around 1k to 2k

How much coverage do I need to start out with and do I need the low deductible?
Obviously I have things to protect. A home and such. Am I putting myself at risk if I don't carry a million dollars of coverage to start with?

I'm I covered by an employers insurance when working under or for them.
Massachusetts requires us to do 25 inspections under a licensed inspector. Am I covered under that inspectors policy while on those 25 inspections?

Any help is greatly appreciated.
[/QUOTE]

FWIW, much of what you're asking are questions for an agent, you've gotten some quotes, I'd suggest following up and asking questions, and if they don't answer to your satisfaction, get some other quotes. Nick put a link up and David Wicker were mentioned, both good HI based sources.

However, in the case of when you're working for another inspector, I'd ask the person you're working under if their policy covers you.

In regards to deductibles and amounts, it's like any other insurance. Lower premiums for higher deductibles. If you had one or two claims, at some point you may be having to come up with 5 or 10K (however unlikely). So, you trade off risk for your cash.

.

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(Mike Pagozalski, CMI) #16

[quote="imayer, post:14, topic:117250"]

Buy a top of the line IR camera and in class training on how to use it and you're over $10K right there.

Other than that I agree with you.

For insurance, I use the link Nick provided myself.

It's not just cost, it's quality.
[/QUOTE]

Yep, a flir T420 and a level 1&2 cert myself and a level 1 for the wife ate that up real quick and then some

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(Eddy Glavin) #17

[quote="bburleson, post:13, topic:117250"]

E&O isn't required in NH. Don't know where he got his info, but it looks like he's looking to do business in both MA & NH, so he needs to cover MA's insurance requirements anyway.
[/QUOTE]

E&O isn't required but general liability coverage is required in NH. Its question #4 on the license application "proof of liability insurance coverage pursuant to Home 301.03 (b)....
Both are required in Massachusetts and yes I plan on working in both States

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