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·what is the reasoning behind having to carry E&O insurance
whats the reasoning with E&O for us
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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 disclaimerhome615 said:
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·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-JFMURFY said:
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I agree with what your saying...need to be very innovative these days to make a buck.newenglandprop said: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-
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·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.home615 said:
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·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
E&O: covers you for information you provided (or should have provided) - hence the ERROR or OMISSION
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?
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
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