Ohhhh The Tangled Web of E&O Ins.

Hi to all,

I am one of the ones looking at the “pay per inspection” E&O insurance. A few things concern me about what I read on the “agreement” that was sent to me to consider. I was wondering if those of you familiar with types of E&O could shed some light on them?? I am sure there are more concerns, but here are a couple.

  1. It is “claims made basis”- what the heck is this?

  2. The agreements/reports are not valid for insurance coverage after the expiration of your coverage period.-Is coverage null & void if someone tries to sue you if you go out of business or something?

Here http://www.home-inspect.com/payperinspection/ is the site if any others of you are considering this.


Greg, you’re not alone. I don’t think that I’ve met anyone who understands insurance “contracts,” and that’s what I want to tell about in the coming days, and the reason I got involved. Inspectors deserve to be told in plain English what they’re getting for what they’re paying. Be patient, it’s on the way. PS I like your almost subiminal message: “Oh, what a tangled web we weave when first we practice to deceive.” (I intend to make sure that doesn’t happen to even one inspector).

You are covered as long as you have insurance. So if you keep paying for insurance for 10 years you have coverage from the 10th year all the way back to your earlier inspections. If you go out of business, either get tail coverage (covers your tail), or have not coverage.

Call Bob he will be more than happy to explain it all.

Thanks, Brian. That’s true. But, I still think that Bob needs to spell it out, in clear and concise terms. I just spoke to a guy who has insurance with a company other than Marion Allen, who thought he had full coverage only to find out that he has to pay several thousand for tail coverage. Needless to say, he’s not a happy camper, and believes that he was misinformed.

Two thoughts come to mind regarding E&O insurance. “let the buyer beware” and skullduggery.

I just found out about the pay per inspection E&O last Tuesday when Nick was in town. I started my business last year and took the $3200 hit for E&O. I found out today because I have E&O, I don’t qualify for the pay per inspection E&O. :frowning: So much for looking at a way to reduce my overhead.