Real Estate Appraisal Forum

appraisersforum.com logo
The Premiere Online Community for Real Estate Appraisers!
 Fastest Way to Find a Real Estate Appraiser Enter Zip Code:
 
 
Go Back   Appraisers Forum > Real Estate Appraisal Forums > Running an Appraisal Business
Register Help Our Rules Calendar Archives Mark Forums Read


Closed Thread
 
Thread Tools
  #1  
Old 05-01-2012, 05:01 PM
Salty's Avatar
Salty Salty is offline
 
Join Date: Mar 2010
Location: Delco
State: Pennsylvania
Professional Status: Certified Residential Appraiser
Posts: 94
Default E&O for fee-split appraisers

How do those of you who send overflow work out to other appraisers handle E&O?

Do you have a group policy that covers the appraisers who you provide work to even if they have their own E&O?

If I provide overflow work to an appraiser on a fee-split basis and I submit the work to the client under my company name it is my understanding that I should have the appraiser under my E&O policy. I suppose that means that appraiser is double covered if they already have their own E&O right?

I see ads for fee-split appraisers who “must have their own E&O”. Am I to assume then that the work those fee-splitters are turning in are not under the company name of the firm providing them the work?
Sponsored Links

  #2  
Old 05-01-2012, 05:11 PM
William Rightsell's Avatar
William Rightsell William Rightsell is offline
 
Join Date: Oct 2004
Location: Greensboro, NC
State: North Carolina
Professional Status: Certified Residential Appraiser
Posts: 842
Default

Salty....

My policy has a special rider which covers work from any independent contractor that is performed under my company name. I had to pay an extra hundred or so it seems like to get the coverage. Well worth the peace of mind.

Covered or not, if the "overflow" appraiser gets in trouble when the law suits start flying YOU will be served too....because they ordered the report from your company. Never mind that you may not have even signed it.

todd
  #3  
Old 05-01-2012, 10:32 PM
Privateer Privateer is offline
 
Join Date: Apr 2008
Location: Southern California
State: California
Professional Status: Banking/Mortgage Industry
Posts: 324
Default

Quote:
Originally Posted by William Rightsell View Post
Salty....

My policy has a special rider which covers work from any independent contractor that is performed under my company name. I had to pay an extra hundred or so it seems like to get the coverage. Well worth the peace of mind.

Covered or not, if the "overflow" appraiser gets in trouble when the law suits start flying YOU will be served too....because they ordered the report from your company. Never mind that you may not have even signed it.

todd
Salty,

Todd has it right. If you are using subcontractors or have ever had subcontractors or appraisers who worked for you, for whom you supervised appraisals or for whom you billed fees, you need to have a policy that covers not only your own work but also covers you for claims resulting from their work. Most appraisers do not have that coverage because they have very narrow coverage that only covers claims based on appraisal work they solely perform. The broader form of coverage is built into some policies or added by endorsement to others. It does not mean you have to pay for "double coverage" if they have separate coverage but it does mean you need to address that you work with subcontractors, trainees or other appraisers with your insurance provider and make sure you have the right coverage to protect you.

This is a very common liability trap for appraisers.

-- Peter Christensen

Last edited by Privateer : 05-01-2012 at 10:40 PM.
  #4  
Old 05-02-2012, 07:56 AM
Mike Kennedy's Avatar
Mike Kennedy Mike Kennedy is offline
 
Join Date: Sep 2003
Location: Southern Hudson Valley
State: New York
Professional Status: Certified Residential Appraiser
Posts: 27,906
Default

Quote:
Originally Posted by William Rightsell View Post
Salty....

My policy has a special rider which covers work from any independent contractor that is performed under my company name. I had to pay an extra hundred or so it seems like to get the coverage. Well worth the peace of mind.todd
...........Ditto.
__________________
Kill the Contract Review Bull$eye - Now.
  #5  
Old 05-02-2012, 08:17 AM
JTip's Avatar
JTip JTip is offline
 
Join Date: Oct 2004
Location: Central PA-Altoona-State College
State: Pennsylvania
Professional Status: Certified Residential Appraiser
Posts: 3,860
Default

I have never seen a 'broad' subcontractor endorsement for E&O, although I'm sure it exists. That's a pretty big exposure for the company, especially if you farm out substantial work from people across your region. You may want to review this with your carrier, I would not assume anything.

Most policies require the subcontractors (individual appraisers) to be added as an 'additional insured' by name.
__________________
I are serious appraiser, this is serious thread.
  #6  
Old 05-02-2012, 04:10 PM
ctapraser's Avatar
ctapraser ctapraser is offline
 
Join Date: Feb 2012
State: Connecticut
Professional Status: Certified Residential Appraiser
Posts: 1,789
Default

Quote:
Originally Posted by JTip View Post
I have never seen a 'broad' subcontractor endorsement for E&O, although I'm sure it exists. That's a pretty big exposure for the company, especially if you farm out substantial work from people across your region. You may want to review this with your carrier, I would not assume anything.

Most policies require the subcontractors (individual appraisers) to be added as an 'additional insured' by name.
Yup, mine also
  #7  
Old 05-15-2012, 10:04 PM
JeffreyAmato JeffreyAmato is offline
 
Join Date: Aug 2008
State: North Carolina
Professional Status: Certified Residential Appraiser
Posts: 34
Default

Our company has quite a few appraisers in different states. I'm pretty sure we are all on the same E&O policy. About 20-30 of us. We do not have our own individual policies.
Sponsored Links

Closed Thread


Thread Tools

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

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump




Copyright © 2000-, AppraisersForum.com, All Rights Reserved
     Terms of Use  Privacy Policy
AppraisersForum.com is proudly hosted by the folks at AppraiserSites.com

Fastest Way to Find a Real Estate Appraiser Enter Zip Code:
Partner Sites:
AppraiserUSA.com - National Appraiser Directory AllDomainsUSA.com - Domain Name Registration
DeadbeatListings.com - Deadbeat ListingsAppraiserSites.com - Web Hosting for the Professional Real Estate Appraiser
Find FHA Appraisers - FHA Appraiser Search Commercial Appraisers - Commercial Appraiser Search
Relocation Appraisal - Find Relocation Appraisers Domain Reseller - Business Opportunity
Home Security Buzz - Home Security Info Radon Testing - Radon Gas Info
My Medicare Forum - Medicare Info Stop Smoking Help - Help Quitting Smoking
CordlessPhoneStore.com - Great Cordless Phones AndroidTabletCity.com - Android Tablet Computers

Follow AppraisersForum.com:          Find us on Facebook            Follow us on Twitter


All times are GMT -5. The time now is 10:46 PM.

SiteMap: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64, 65, 66, 67, 68, 69, 70, 71, 72, 73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93