REO Property Preservation Forum - Reply to Topic
Thread: whats the reasoning with E&O for us Reply to Thread
Title:
Message:
Trackback:
Send Trackbacks to (Separate multiple URLs with spaces) :
Post Icons
You may choose an icon for your message from the following list:
 

Register Now



In order to be able to post messages on the REO Property Preservation Forum forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:
OR

Log-in










  Additional Options
Miscellaneous Options

  Topic Review (Newest First)
03-16-2012 01:37 PM
MFSOracle For those who don't understand Errors and Omissions insurance (E&O) in the P&P industry, here's a quick primer:

General Liability: covers you for work you performed
Example: you install a new staircase; somebody falls on the staircase and gets hurt - they claim your work was defective - GL pays to defend you or pays the claim

E&O: covers you for information you provided (or should have provided) - hence the ERROR or OMISSION
Example: you fail to report a roof leak even though your photos show water stains on the ceiling - client claims you are responsible for all the new water and mold damage - E&O policy may cover the loss

In many cases the quality of the work you perform is FAR less relevant than the information you provide to clients. In P&P, the banks and nationals woefully underpay for the information they hold vendors accountable for - they expect full-blown home inspections to be covered by the fee to change a lock, winterize, or even for the privilege of submitting a bid (i.e. free).


So why do nationals require you to use their select E&O carriers?
1) It's easier for them to submit a claim against your policy; especially after you quit doing work for them because you figured out that it's not worth it
2) They argue that these "select" carriers have a better understanding of the P&P industry (honestly, they probably do have a better understanding)
3) It's easier for them to submit a claim against your policy; especially after you quit doing work for them because you figured out that it's not worth it
03-12-2012 11:10 PM
foothillsco
Quote:
Originally Posted by home615
what is the reasoning behind having to carry E&O insurance
My only reason I have it is because my clients require me too. I hate paying it but it's the cost of doing business. Like flat tires from the landfill.
03-09-2012 06:42 PM
BPWY At one point in time I believe that the regional Mid American covered CT and NH.

Stay far away from them.
03-09-2012 05:22 PM
JFMURFY
Quote:
Originally Posted by newenglandprop
Nice to see another CT contractor-JF im sure you know by now it is not worth working for any national here in CT-put any nationals price list side by side with HUD P&P cost schedule and you will see a huge difference-
I agree with what your saying...need to be very innovative these days to make a buck.
03-09-2012 10:07 AM
newenglandprop P&P for HUD in CT
03-09-2012 10:04 AM
newenglandprop
Quote:
Originally Posted by JFMURFY
We'll if you misreport a property issue, or neglect to inform them of potential damage, an it happens... we'll my friend... you as a professional contractor in this industry are liable. It's all in the PCR (property Condition Report), many firms want completed when you do any to of services at a property, and here in lies the issue I have with many of fly-by night Nationals... send you to a property to say give them a bid wintz a wet radiant heat system (3 Points)...they don't pay for the bid, but expect you to give them a dam history on the property in the 10 minutes your there looking at what they bid for... I skip they crap an explain we looked at what you wanted us too bid, and any issues beyond that are not of our making or concern... then tuck-in fine print disclaimer
Nice to see another CT contractor-JF im sure you know by now it is not worth working for any national here in CT-put any nationals price list side by side with HUD P&P cost schedule and you will see a huge difference-
03-08-2012 05:39 PM
JFMURFY
Quote:
Originally Posted by home615
what is the reasoning behind having to carry E&O insurance
We'll if you misreport a property issue, or neglect to inform them of potential damage, an it happens... we'll my friend... you as a professional contractor in this industry are liable. It's all in the PCR (property Condition Report), many firms want completed when you do any to of services at a property, and here in lies the issue I have with many of fly-by night Nationals... send you to a property to say give them a bid wintz a wet radiant heat system (3 Points)...they don't pay for the bid, but expect you to give them a dam history on the property in the 10 minutes your there looking at what they bid for... I skip they crap an explain we looked at what you wanted us too bid, and any issues beyond that are not of our making or concern... then tuck-in fine print disclaimer
03-08-2012 11:20 AM
home615
whats the reasoning with E&O for us

what is the reasoning behind having to carry E&O insurance

Posting Rules  
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

 
For the best viewing experience please update your browser to Google Chrome