Adding AMC's to E&O as an additional certificate holder

[Pittsburgh Pete]

Is that what they have told you? It eliminates the need for them to have E&O and it also costs extra to add them to the policy.

Not sure who the nefarious "they" are to whom you refer!

A certificate holder is merely informed that the policy is in place--an additional insured is a whole different matter.

You should know the difference before making comments that demonstrate your lack of knowledge on the subject.

 

[Paul Cunningham]

So far, I haven't done it and I am a little upset that they are asking for it. I don't mind providing them with a copy, but thy should stay out of my policy. They should get their own. I know there are others out there that have so I was trying to get their take on it. Just another thing the AMC's are TAKING from us. This is not capitalism. The government has given up control of my business to others. Does anyone even pass out business cards any more or do any marketing at all. Why, no one can use you if they want to. Who cares if you have a solid reputation. The only thing that matters is your performance rating, lowest fee and turn time. Just get on the list and take the for whatever fee they give you or they will give it to someone else.

 

[Paul Cunningham]

When I get an E&O policy, I then become a "Policy Certificate Holder", Adding them as an additional certificate holder is adding them as additionally insured, and My E&O is charging me extra to have them added as "additionally insured" And if they are not insured as a result of this policy, then why are they asking to be on the policy as "additionally insured". What do you think "additionally insured" means? They are also insisting on having a waiver of subrogation placed on the policy which means no one can come after them for damages.

 

[Pittsburgh Pete]

So far, I haven't done it and I am a little upset that they are asking for it. I don't mind providing them with a copy, but thy should stay out of my policy.

If you are having major work done on your house, you would want the contractor to be bonded, would you not? And you would ask for proof of the bond?

This ain't any different. While AMCs are undoubtedly annoying, asking for proof of E&O is sound business practice on any client's part.

 

[Paul Cunningham]

Would you ask the contractor to place you on their policy or would you just ask for a copy of the policy and call them to check it out?
If I am having work performed on my house I may ask to see their insurance, but if I was serving as a middle man between may different contractors and many different homeowners and taking half the fee, then I wouldn't be right to ask to be placed on their E&O insurance.

 

[Roy Courtney]

So far, I haven't done it and I am a little upset that they are asking for it. I don't mind providing them with a copy, but thy should stay out of my policy. They should get their own. I know there are others out there that have so I was trying to get their take on it. Just another thing the AMC's are TAKING from us. This is not capitalism. The government has given up control of my business to others. Does anyone even pass out business cards any more or do any marketing at all. Why, no one can use you if they want to. Who cares if you have a solid reputation. The only thing that matters is your performance rating, lowest fee and turn time. Just get on the list and take the for whatever fee they give you or they will give it to someone else.

Paul,
I understand how you feel but it not totally true. I do NOT work for any AMCs and I am very, very busy! I do not have my E & O company notify anyone about anything and I also do appraisals for local, state and federal clients. I did an 18,573 sq. ft. federal building last month and working on another 16,463 sq. ft. federal building right now. You do not have to work with AMCs! If they pay good and provide some respect then go for it. If not tell them to take a hike! It is YOUR business, not theirs!

 

[CANative]

Question:

Have a long-standing client (although they are past due on their account) insisting that I put them in as a certificate holder on my E&O insurance. I have refused. They are severing our working relationship.

What's the deal with being a "Certificate Holder?" I don't like agreeing to this because -- as someone put in a couple of years ago -- it's as if you work as a delivery person for Domino's Pizza and they ask to be put on YOUR personal auto insurance.

Robert: Your take on this?

Alix

Answer:

I believe that "certificate holder" is different from a "named insured." While I would never add a client as the latter, I don't think there is a problem with the former. It is my understanding that being a "certificate holder" would entitle them to a notice of any changes or if the policy is canceled.

I think this might be useful because I have heard rumors that some abstractors were buying a policy by financing the premiums, then after they got their policy they would cancel or just stop paying the premiums. This allowed them to provide proof of insurance for a year, even though they canceled the coverage.

I would check with your E&O agent and ask them exactly what it means to be a "certificate holder." If you get more information, please share it with us.

Best,
Robert A. Franco
SOURCE OF TITLE

http://www.sourceoftitle.com/post_l...fold=34855&unfolded=false&start=30&this#34855

 

[Pittsburgh Pete]

Would you ask the contractor to place you on their policy or would you just ask for a copy of the policy and call them to check it out?
If I am having work performed on my house I may ask to see their insurance, but if I was serving as a middle man between may different contractors and many different homeowners and taking half the fee, then I wouldn't be right to ask to be placed on their E&O insurance.

Read any of my prior posts? Being a certificate holder is not, apparently, what you think it is.

This from an insurer's website:

If a Certificate of Insurance is issued, listing your client as a certificate holder, it provides “proof of insurance” only and does not afford any coverage to your client. There is no charge for a Certificate of Insurance of this type.

Again (I'm typing slowly here so that you might be able to follow), they are not asking to be "placed" on your insurance policy. They are merely requesting that you prove to them that you have insurance.

 

[Paul Cunningham]

Paul,
I understand how you feel but it not totally true. I do NOT work for any AMCs and I am very, very busy! I do not have my E & O company notify anyone about anything and I also do appraisals for local, state and federal clients. I did an 18,573 sq. ft. federal building last month and working on another 16,463 sq. ft. federal building right now. You do not have to work with AMCs! If they pay good and provide some respect then go for it. If not tell them to take a hike! It is YOUR business, not theirs!

Easy to say if you are a general. I did not get into this business to do commercial work. I was happy doing residential work and if you want to do that, then you have to work with AMC's for now, or you have to find something else to do. A good reputation and aggressive marketing will get you nowhere. You just have to get on the list and sit back and wait to see if you are the lowest bidder.

 

[Paul Cunningham]

Read any of my prior posts? Being a certificate holder is not, apparently, what you think it is.

This from an insurer's website:

If a Certificate of Insurance is issued, listing your client as a certificate holder, it provides “proof of insurance” only and does not afford any coverage to your client. There is no charge for a Certificate of Insurance of this type.

Again (I'm typing slowly here so that you might be able to follow), they are not asking to be "placed" on your insurance policy. They are merely requesting that you prove to them that you have insurance.

They are asking to be listed as an additional certificate holder per endorsement form number CG 2010 (10/01) which "​

​

Gives the Additional Insured protection for your “On-
Going” Operations (while you are on the job). This
protection includes free defense costs for the​

Additional Insured.

Another quote from my insurance companies website and if you are saying that being a certificate holder is different from being additionally insured then fine, they are asking to be places on my E&O policy as an "additionally insured party' with a waiver of subrogation. How would you feel about that.