Originally Posted By: jremas This post was automatically imported from our archived forum.
I was looking at my old 2002 policy when I had Western Heritage Insurance through Tuscano Agency and Griffith Insurance. I have never renewed with them because I found much better coverage (although more expensive) that I am more comfortable with. I am alarmed at what I am reading in the old policy and I urge anyone who may still use them to have your attorney review it. Here are a few highlights that should concern us:
1) This coverage applies only in the event that damages are claimed within one year after the date of the physical inspection upon which the inspection report was furnished.
2) The liability is only $100,000. per occurence, $500,000. aggregate.
The limit of liability shown above for each occurence is the most we
will pay for "Property Damage arising out of inspections.
3) Although the word E&O is used in the premium page, it is no where to be found and the entire policy is referred to as "commercial general liability".
4) The policy does not cover punitive or exeplary damages, NOR the legal costs involved to defend for them.
5) The declarations page specifically states that Professional Liability is NOT covered and there are NO endorsements for inclusion of E&O to be found.
This is my own opinion based on my reading of the policy. In my opinion, it does not have E&O at all. Anyone who has this policy and lives in a state that requires E&O should have it reviewed by their attorney to see if it complies with the current laws and requirements
Thoughts? Low price could be too good to be true.
--
Jeff Remas
REMAS Inspections, Inc.
Northeastern PA & the Poconos
www.NEPAinspector.com
Originally Posted By: dharris This post was automatically imported from our archived forum.
I have my insurance thru them and recently renewed
I questioned my agent in 2000 on the same things your stating, Per the agent one I’ve have business liability with for 15 yrs he swears it does cover E@O
The present certificate of liability ins I have, and a required copy sent to AZ for certification shows E@O 100/20000 and states that is a occurrence policy
Another local agent mailed info to local inspectors when ins requirements came in effect on same company WH Ins Co. and i’m assuming there are others here with the same ins
In 2000 my rate was $800 this year $3250 with no claims
I sure hope i’m properly insured, AZ accepted it but I don’t know if they review the policy prior to accepting
Originally Posted By: ekartal This post was automatically imported from our archived forum.
jremas wrote:
1) This coverage applies only in the event that damages are claimed within one year after the date of the physical inspection upon which the inspection report was furnished.
Many inspectors are not aware that you need to purchase 'tail coverage' after your policy expires. Depending on your states statue of limitations, you may need to pay for insurance up to 4 years after you do your last inspection to CYA.
Originally Posted By: ekartal This post was automatically imported from our archived forum.
An example would be you did your last inspection today. Well, your coverage stops today too. In many states a suit can be filed up to four years (or longer). Without the tail policy, then you’re on your own. It’s funny how the insurance companies that solicit our business never mention this part…
Originally Posted By: dharris This post was automatically imported from our archived forum.
I think that’s the difference between the claims made and occurrence policies, [ If I understand it correctly The occurrence policy doesn’t require tail ins] the one thing I’m concerned about coverage is limited for only 1 year after inspection
Originally Posted By: tallen This post was automatically imported from our archived forum.
Dan,
I use the same company as you ,and my policy w/ 1,000,000.00 liability and the same E&O was$ 2008.00 this year up from $1800.00 last year. I have questioned them extensively, and from what I have been told we are covered for the date of inspection. It matters not if they file a claim 4 years later as long as we had Ins. when the inspection was completed. My Law person told me the same.
– I have put the past behind me,
where , however, it now sits, making rude remarks.
Originally Posted By: ekartal This post was automatically imported from our archived forum.
Good point Dan. I forgot to mention the difference. But I bet many inspectors have claims made and don’t know that tail coverage will someday become a big expense.
Todd, you only pay $2000 a year? I take it you've been in the biz a while. Good deal.
Originally Posted By: Nick Gromicko This post was automatically imported from our archived forum.
Jeff Remas:
Griffith gives huge NACHI member discounts (my old company pays only $1400/year for $500,000.00 E&O) and I'm not sure the 1 year thingie means much in PA where...
From PA law:
"An action to recover damages arising from a home inspection report must be commenced within one year after the date the report is delivered" (thanks to NACHI lobbying).
and
"a home inspector shall maintain insurance under subsection for at least one year after the latest home inspection report the home inspector delivers."
Originally Posted By: jremas This post was automatically imported from our archived forum.
OK great, they still need to prove to me that the coverage is really E&O. The policy I had and still have in posession does not say that anywhere. Looks like fluff to me.
–
Jeff Remas
REMAS Inspections, Inc.
Northeastern PA & the Poconos
www.NEPAinspector.com
Originally Posted By: jremas This post was automatically imported from our archived forum.
The client can file a claim any time they want, the insurance is only good for 1 year from the date of the inspection.
I have reviewed my old policy and have decided that in my opinion it is nothing more than a general liability policy & not an E&O policy.
Anyone who has this for E&O purposes should have it reviewed ASAP to make sure that it complies. I posted this before and I am repeating myself for your benefit.
Smoke & Mirrors
--
Jeff Remas
REMAS Inspections, Inc.
Northeastern PA & the Poconos
www.NEPAinspector.com
Originally Posted By: ekartal This post was automatically imported from our archived forum.
Joe,
Is the one year thing the law or just the standard verbage in a inspection agreement. The reason I ask is that I believe it was Chris at FREA (I think it was him anyway) that recommends a 2 year tail policy. I’m almost certain in some states that a claim can arise several years later.
Originally Posted By: rbracklow This post was automatically imported from our archived forum.
You Guys are lucky!!
Here in California, they have 4 years to file a claim, and we are not required to carry E&O??  
Ron.
-- The highest compliment my clients can give me, is the referral of their Friends, Family and Business Associates!
But I bet many inspectors have claims made and don’t know that tail coverage will someday become a big expense.
that recommends a 2 year tail policy. I’m almost certain in some states that a claim can arise