Originally Posted By: gromicko This post was automatically imported from our archived forum.
I worked all day today with NACHI attorney Joe Ferry on our arbitration service. Joe has been getting this together for the past few months. It will be run from separate offices at Penn Center in downtown Philadelphia. He is assembling our arbitration panel now. I’ll release the arbitration language in the next few days. He is working on the rules of evidence, filing instructions, etc.
Unlike civil court or other arbitration services, this arbitration panel does not require inspectors to appear in person (so you need not take off work). It will be available to inspectors everywhere. The service will also be made available to non-members (but for an additional fee).
NACHI's arbitration service is another piece of the puzzle in our quest for less expensive E&O insurance and will offer our members and consumers a better option than the courts for dispute resolution.
Originally Posted By: jmyers This post was automatically imported from our archived forum.
Nick,
Not that I am all that biased myself but don't you think the name is already showing favoritism toward the inspector. I believe a better name would something along the line of Home Inspector Arbitration Service. 
Originally Posted By: Joseph A. Ferry This post was automatically imported from our archived forum.
Joe -
Since this is an affiliated enterprise of NACHI, it makes sense to call it the NACHI Arbitration Center.
It most definitely will not be biased in favor of - or against - the inspector. I can think of no better way to scuttle the idea than to conduct such a 'boat race'. The NASD runs arbitration fora for its members and member organizations and the results are not only binding but enforceable in court.
The NAC's decisions will be, as well. We contemplate having one level of appeal to protect the claimant and respondent inspector alike against a truly rogue decision.
Originally Posted By: Blaine Wiley This post was automatically imported from our archived forum.
Joe and Nick,
I would like to expand a little on Eric's question. I have had an arbitration clause in my contract for years, and it states that it is to be used in "accordance with the rules of the American Arbitration Association".
How will our rules compare? Will NACHI provide proper language for us?
Originally Posted By: Nick Gromicko This post was automatically imported from our archived forum.
Yes. Only our Arbitration service will be much better:
Less expensive (for NACHI members).
Key component in getting E&O insurance discounts.
Holds agents harmless so they insist on NACHI inspectors.
Done all by mail so you don't have to travel or take off work.
Panel only hears inspection disputes, so they understand it better.
Limits inspector liability.
Provides consumers with clearer reasoning behind decisions.
Faster.
No inspector-side filing fees.
Free decision appeal for consumers.
Originally Posted By: jpope This post was automatically imported from our archived forum.
I would like to hear from NACHI Member Bob Pearson of Allen Insurance. As a provider of insurance for inspectors, will he be in-line with this Arbitration Service?
If so, this would be great for CA NACHI inspectors as well. I would also like to know whether the NACHI pre-inspection agreement coupled with this arbitration clause is sufficient for coverage by Allen Ins. Group at the current rates for CA inspectors?
-- Jeff Pope
JPI Home Inspection Service
"At JPI, we'll help you look better"
(661) 212-0738
Originally Posted By: Nick Gromicko This post was automatically imported from our archived forum.
Our arbitration service will cause less claims to be paid by Allen Insurance. I’m assuming that they will desire our business more because of that and therefore reward us for having less claims. 3 underwriters have already agreed to reward us for simply having less claims than the rest of the industry. With real estate hold harmless clauses and arbitration service, we will have even more competition for our insurance premiums. I suspect Allen Insurance will fight for our business as well.
Originally Posted By: gbeaumont This post was automatically imported from our archived forum.
Hi Nick
with this arbitration be binding in all states, and secondly will this allow us (through the underwriters that you are currently talking to) to be able to get an E&O provider for our members that can write insurance in all states ??
Originally Posted By: Nick Gromicko This post was automatically imported from our archived forum.
The whole E&O discount thingie is a big project.
We had to have an exam that weeds out 1/2 the inspectors. Done.
We had to have an iron clad pre-inspection agreement. Done.
We had to rewrite our Standards of Practice. Done.
We had to get an attorney on board. Done.
We had to gather data for the underwriters with an online survey. Done.
We had to get an agent hold harmless agreement. Done.
We had to start an arbitration service. Doing.
Finally we have a few companies realizing its very profitable to write E&O insurance for NACHI members. We'll get E&O insurance premium discounts because as NACHI, we deserve to pay less than other home inspectors. The savings should be about 4 times our membership dues. But like all the many many member benefits that came before, it takes a lot of work and time. Canada was even harder still.
If the President of ASHI is truly a smart business man he'll send in his NACHI application for this one member benefit alone.  We're making it mathematically stupid not to join NACHI.