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post #1 of 26 (permalink) Old 07-28-2016, 08:25 AM Thread Starter
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Insurance Question

I just want to make sure I am understanding this correct. These national and regional companies are in bed with some insurance companies, and they make you get crazy insurance in order to save themselves. If I don't plan on working with nationals and regionals, do I even need to get E&O? It would make sense to just go with a local insurance company rather than a nationwide one. Any thoughts?
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post #2 of 26 (permalink) Old 07-28-2016, 08:37 AM
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They are definitely in bed with them. I had my insurance company tell me that even though I have insurance, it only covered my work with the Nationals. Needless to say I cancelled. This was from a big name insurance company within this line of work.
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post #3 of 26 (permalink) Old 07-28-2016, 09:06 AM
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Years ago, when informed I had to use one of a specific three for my preservation insurance carrier, I grabbed my local agent and laid out exactly what I needed. After he got his head around the language in the documents and confirmed the legalities, he made some phone calls, made some more phone calls, and wrote a policy.
It was immediately declined by the nationals.
They didn't want the insurance company to be my advocate, they wanted them to be theirs.

Scenario A-
You rekey a property and 6 weeks later you get an email saying the hope diamond and the mortgager's Saab is missing. You pull your photos from the file, review your paperwork, talk to the subs and maybe make a quick call to your local agent before telling them to KYA.

Scenario B-
You get an email from the National maybe before or maybe not before the law firm on retainer from said National calls you and request a deposition regarding the events surrounding the theft. Count on their consultation triggering your deductible. They say they represent you, but you didn't hire them, they don't respond to your directives and they seem to be in regular contact with the national. You call and email the national and the Human Resources rep with an attitude similar to Squidwards tells you he'll look into it and get back to you. Their "back to you" consists of an email and/or letter months later dictating the settlement that was made to the homeowner via your insurance company. You'll be notified from them as well, and count on a rate increase your next fiscal year.

If you only work privately, depending on your area of expertise, you might only need general liability and E&O or more. Mortgage Field Service Insurance is kind of like spending your money at the company store for a suit that only fits your boss.
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post #4 of 26 (permalink) Old 07-28-2016, 11:45 AM
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In this business, insurance is HIGHLY recommended. Despite working for local/private companies, there always could be an issue/complication for work you performed. Not saying you don't know what you are doing, or will make a mistake. But, there is always a chance. Just my 2 pennies worth.
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post #5 of 26 (permalink) Old 07-28-2016, 07:40 PM
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My GL policy has an endorsement that covers E&O (Prof. Liability) and has never been rejected by any company - national or regional....and my multi-million dollar policy is now down to less than $1,200/year....

I have never struggled with the 'insurance barrier' that many claim to be caught up in.
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post #6 of 26 (permalink) Old 07-28-2016, 07:49 PM Thread Starter
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May I ask who you use for your insurance buddhalite?
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post #7 of 26 (permalink) Old 07-28-2016, 08:24 PM
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My local insurance guy put my company with Western World. Even when I was new - these guys were 1/2 price or better than anyone else.

The policy includes a very generous professional endorsement (it's a specialty product for the preservation industry) and my policy just gets cheaper as time goes on.....of course I've never filed claim 1 - but they have been great as far as I know and cheap to boot.
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post #8 of 26 (permalink) Old 07-28-2016, 11:07 PM
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I'd get a new insurance agent or hire a 3rd party non-interested insurance consultant to review your coverage. Western World isnt filed to write P&P E&O they do Property Managers and inspectors (if Licensed or certified).
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post #9 of 26 (permalink) Old 07-29-2016, 06:00 AM
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post #10 of 26 (permalink) Old 07-29-2016, 09:27 PM
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If not satisfied please returned the unused portion of the product and we'll return the unused portion of your money.
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