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E and O Insurance for new appraisers

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Pat Gries

Freshman Member
Joined
Feb 6, 2003
Professional Status
Certified Residential Appraiser
State
Colorado
I am new to the business and forum. I have been trying to get a clear understanding if E & O Insurance. Is it required when you are starting out in the business or does your mentor carry the insurance?
 

Claudia Cullen

Sophomore Member
Joined
Dec 18, 2002
Professional Status
Licensed Appraiser
State
Massachusetts
The answer seems to depend on where you are and what firms you may work for. When I started as a trainee, I was covered by the insurance of the firm that hired me. Now that I am state licensed, I've moved to independent contractor status at a difference firm and am covered there. A very good friend of mine works for an appraisal management company and told me appaisers doing work for her company are covered under the E & O insurance of the company.

But what maybe the best advice is the statment made by the moderator of the USPAP class I took. He was asked the question about E & O insurance and responded by saying "There's nothing to stop them (fee split firms, AMC's etc.) from coming after you if there was a problem". I took that to mean that having my own coverage was a good idea. And it is first on my list of things to do to grow my business this year.
 

Michael Reilly

Junior Member
Joined
Jan 15, 2002
Pat, Welcome. And keep this in mind,

If you helped create reports and apply your signature to them you are at risk, plain and simple. Any lawyer in the country can make a case against you but remember what E&O is, Errors and Omissions not fraud. . Get the insurance it’s fairly cheap.

MReilly-NY
ACE
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
Depends on the company with whom you are employed. Do they have E&O as a company policy, or does everyone have individual policies? I have a whole company policy to cover everyone in our little family biz. If your firm does not provide coverage, you can get individual coverage for a few hundred bucks.

P.S. Check out this months "Communicator" to learn about the differences in coverage.
 

Ziming Zhou

Freshman Member
Joined
Feb 24, 2003
Hi,

Can someone recommend a good E & O Insurance company?

My mentor told me that the insurance company he contacted charges $830 for him and another $830 for each trainee for a policy of $1000000 coverage. Is that expansive or reasonable?

Thanks in advance!

Ziming
 
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