E & O

[wendy10209]

HI, do you all keep E & O insurance even if you haven't actively appraised for over 8 years. My license is current, but I do not complete appraisals. My E&O is due to renew but with the rising cost I wonder if it is necessary for me at this time??

 

[Vermonter]

Since you are keeping your license active, you may want to keep the E&O going or at least talk to them and see what your options are since you're no longer actively completing appraisals.

I will tell you when I finally retire, my E&O expires 1 month before my license and it will be the first thing to go. Don't care about tail insurance if I'm not renewing my license.

 

[wendy10209]

Thanks. I only keep my license for prior acts but do I need to since I haven't appraised for 8 years?

 

[Vermonter]

Yeah, I'd let it all expire, especially if you haven't done any work in 8 years.

 

[jay trotta]

Since you are keeping your license active, you may want to keep the E&O going or at least talk to them and see what your options are since you're no longer actively completing appraisals.

I will tell you when I finally retire, my E&O expires 1 month before my license and it will be the first thing to go. Don't care about tail insurance if I'm not renewing my license.

I do believe it is part of the policy, no extra cost for the coverage. Also, believe it's for past file coverage just in case anyone gets a feather up their arse.

 

[Tom D]

You need to get a 1 time end of career E&O which only covers the past years. If you start again, you just re apply. That policy is not expensive. No need to renew a in use policy.
You have wasted 8 years of E&O fees.

 

[J Grant]

Thanks. I only keep my license for prior acts but do I need to since I haven't appraised for 8 years?

I think it is the reverse - people pay what is called tail coverage for EO after retiring but they drop their license. If you work for an appraisal management company, then IDK- what are you doing there?

 

[Alsie35]

You need to get a 1 time end of career E&O which only covers the past years. If you start again, you just re apply. That policy is not expensive. No need to renew a in use policy.
You have wasted 8 years of E&O fees.

8 years is beyond the statute of limitations - *BUT* people can get sued anyway, so a "sunset" policy covering you retroactively is the prudent way to go. One-time payment and you can go back to the beach!

 

[gregb]

Tail coverage is the layman's term for Extended Reporting Period (ERP) coverage.

The ERP will cover claims made after the policy expiration date and the commencement of the ERP. ERP extends the time during which a covered claim can be made and reported. This does not mean that you will have coverage if you perform professional services after the policy has expired. The ERP is generally offered for a period of 1, 2, 3, or 5 years, or unlimited.

Some policies, such as LIA's, will offer the option to purchase unlimited Tail coverage for qualified retiring applicants. LIA also offers certain qualified retirees unlimited Tail coverage at no cost.

 

[wendy10209]

I do believe it is part of the policy, no extra cost for the coverage. Also, believe it's for past file coverage just in case anyone gets a feather up their arse.

yes it is but I have to keep the whole policy in effect for it to be good for past acts?