NY AMC law. See page 5 about indemnification.

[Jim Scholl]

Here is a link from E & O Attorney Peter Christensen from 2011 on indemnification clauses.

https://appraisersblogs.com/apprais...ication-clauses-in-AMC-contractor-agreements/

Again, please call you E & O provider to discuss any indemnification clause you are contemplating signing or have previously signed.

 

[DWiley]

Since we already supply the AMC's with E & O there really is no need for a separate indemnification.

Well, E&O only covers errors and omissions. It does not cover other things. For example, it does not cover an intentional act, such as theft. And, yes, such things do happen. Certainly, it is rare, but it does happen. I have been provided video evidence of an appraiser taking things from a home during the course of an inspection.

Is it not fair to ask an appraiser to be responsible for such behavior, rather than the AMC?

 

[Jim Scholl]

Well, E&O only covers errors and omissions. It does not cover other things. For example, it does not cover an intentional act, such as theft. And, yes, such things do happen. Certainly, it is rare, but it does happen. I have been provided video evidence of an appraiser taking things from a home during the course of an inspection.

Is it not fair to ask an appraiser to be responsible for such behavior, rather than the AMC?

You don't need an indemnification clause for that theft, call the police. Where is the indemnification clause protecting appraisers from the actions of AMC's and their officers? Everyone should call their own E & O provider to discuss these clauses as stated earlier. Read Peter Christensen's post from 2011 posted earlier.

 

[DWiley]

You don't need an indemnification clause for that theft, call the police. Where is the indemnification clause protecting appraisers from the actions of AMC's and their officers? Everyone should call their own E & O provider to discuss these clauses as stated earlier. Read Peter Christensen's post from 2011 posted earlier.

I have known Peter a very long time. We have discussed this matter at length, and I agree with his position that unfair indemnification clauses should be avoided. The problem I have seen is that appraisers simply see the term "indemnification" and start crying foul without reading what the clause actually says.

The law in NY rightfully does not allow an AMC to ask an appraiser to indemnify against actions by the AMC. But why should the AMC not ask the appraiser to indemnify against actions by the appraiser. Just as the AMC should be accountable if it does something wrong, so should the appraiser.

If, God forbid, an appraiser were to do something that resulted in catastrophic harm to someone, why should the AMC be liable for that? If you think that is a wild premise, just look how many posts there are on this forum about appraisers who have carry permits. And, as much driving as residential appraisers do, it is certainly not out of the realm of possibility that they might do property damage or personal damage while driving to inspections or driving around taking comp photos.

If you choose to avoid working with anyone with ANY kind of indemnification clause, then that is your choice. But before you get on too big a moral mountain on this, I suggest looking through other agreements you have - like software agreements, etc.

Sorry - I just wasted too much time dealing with appraisers who would file complaints over AMC agreements without actually understanding that the agreement actually did NOT violate the law.

 

[Jim Scholl]

I have known Peter a very long time. We have discussed this matter at length, and I agree with his position that unfair indemnification clauses should be avoided. The problem I have seen is that appraisers simply see the term "indemnification" and start crying foul without reading what the clause actually says.

The law in NY rightfully does not allow an AMC to ask an appraiser to indemnify against actions by the AMC. But why should the AMC not ask the appraiser to indemnify against actions by the appraiser. Just as the AMC should be accountable if it does something wrong, so should the appraiser.

If, God forbid, an appraiser were to do something that resulted in catastrophic harm to someone, why should the AMC be liable for that? If you think that is a wild premise, just look how many posts there are on this forum about appraisers who have carry permits. And, as much driving as residential appraisers do, it is certainly not out of the realm of possibility that they might do property damage or personal damage while driving to inspections or driving around taking comp photos.

If you choose to avoid working with anyone with ANY kind of indemnification clause, then that is your choice. But before you get on too big a moral mountain on this, I suggest looking through other agreements you have - like software agreements, etc.

Sorry - I just wasted too much time dealing with appraisers who would file complaints over AMC agreements without actually understanding that the agreement actually did NOT violate the law.

Again, appraisers discuss this with your E & O providers and show examples if you have them. And please read Peters post!

 

[DWiley]

Again, appraisers discuss this with your E & O providers and show examples if you have them. And please read Peters post!

I think this is very good advice. Most appraisers are not experienced in dealing with such laws and with complicated contracts. It is always good to get input from specialists.

 

[The Bob]

Jim,
Ok, I'm confused. In your OP, you posted the NY AMC law and then later, in response to Terrell, you say that you won't sign "such agreements". I'm assuming you mean AMC contracts that have the wording about indemnification. Are you saying the AMC is asking you to sign an agreement with wording that violates NY law?

 

[Jim Scholl]

Jim,
Ok, I'm confused. In your OP, you posted the NY AMC law and then later, in response to Terrell, you say that you won't sign "such agreements". I'm assuming you mean AMC contracts that have the wording about indemnification. Are you saying the AMC is asking you to sign an agreement with wording that violates NY law?

Jim, I want al of us to see the law and what it provides. Then I want all appraisers to discuss contracts or engagement letters that include indemnification with their E & O provider as I did. I am saying I won't sign one after having that discussion. You will want to read Peter Christensen's post as well.

 

[The Bob]

I guess I see it as Danny does. They aren't asking us to indemnify against their actions, only ours. Btw, the VA AMC law has identical verbiage as the NY law regarding indemnification.

 

[Jim Scholl]

I guess I see it as Danny does. They aren't asking us to indemnify against their actions, only ours. Btw, the VA AMC law has identical verbiage as the NY law regarding indemnification.

Danny also agreed you should show these clauses to your E & O provider. You need to know if they effect your E & O and how. The clauses vary and so do E & O policies.