Home Inspectors: Inspecting Your E&O Insurance
by David Brauner, Senior
Broker, OREP
Here’s a riddle that more and more inspectors are solving easily: how do you
obtain $1 million in errors and omissions insurance (E&O) from an “A” Rated
carrier that covers your entire firm- one, two, three, four inspectors or more*,
including an Additional Insured Endorsement for Agents and other Referring
Parties, Termite and Radon coverage, coverage for commercial inspections, pool,
septic and new construction/code compliance- for a premium under $4,000?
The answer is you call or
visit OREP.
The premium for a $1 million limit is $3,300 and includes all the coverages
listed above. There is no additional charge for additional inspectors in the
firm (*premiums prorate up at higher revenue thresholds).
The minimum premium for the same coverage is $1,860 ($100,000 limit).
OREP is the E&O provider of choice for more and more inspectors nationwide. The
program provides prior acts for qualified applicants and offers
premises liability coverage at very reasonable rates. This provides coverage
for claims resulting
in bodily injury or property damage occurring at the inspection site.
General Liability insurance is no longer required for the OREP program but is
available for about $350.
Are you Paying Too Much for E&O Insurance?
You may be paying too much for
E&O insurance, especially if you are paying ‘per inspector’ or are paying
additional premium for coverages that are included in the OREP program.
Coverage
Premiums
OREP offers the following
premiums that cover all inspectors in the firm.
|
Limit |
Premium |
|
$1,000,000 |
$3,300 |
|
$500,000 |
$2,700 |
|
$300,000 |
$2,340 |
|
$100,000 |
$1,860 |
Broad Coverage
Additional Insured Endorsement
for Agents and other Referring Parties, Termite & Radon coverage, coverage for
commercial inspections, pool, septic and new construction/code compliance are
included.
Taxes and fees ($300-$400) are not included in the premiums listed. Financing is
available. The standard deductible is $5,000.
Beginning inspectors may qualify with related experience such as construction,
remodeling, engineering. If qualified, the same low rates and coverages apply
for beginning inspectors.
Do the numbers to see if you’re paying too much for E&O insurance. It pays to
shop OREP!
About the
Author
David Brauner, Senior Broker at
OREP, has been providing E&O for home inspectors for over 14 years and is Editor
of Working RE Magazine (www.workingre.com).
(Calif. Insurance #0C89873)