errors and omissions insurance

Home Inspectors: Here Are Your New Year’s Resolutions

Home Inspector New Year's ResolutionsFirst, let’s get the “Happy New Year!” salutation out of the way. My team and I wish you the very best in 2017. I suggest you follow these New Year’s resolutions to get the most out of your business and make the best use of your time in 2017. 1. Raise your rates: This is something I learned in my first job at a Philadelphia “white shoe” law firm. On January 1, every lawyer’s hourly rates increased by $10 or $15. I still implement this practice to this day. Every business raises its rates for “inflation”, and you should too. 2. Stop chasing the market down: Stick to your guns. If you continually lower your rates to match the competition, you are supporting the notion that one inspector is as good as another. You know that isn’t true. Cheap Charlie is cheap for a reason. So instead of lowering your business to that level, provide value-add reasons why your product is worth more. Watch this video to discover other New Year’s resolutions you should implement in 2017. (more…)

(more...)

E&O Insurance Is Even For The Mistake-Proof Home Inspector

E&O Insurance for the Mistake-ProofHome inspectors often ask me, “Should I have professional liability insurance?”

Conceptually speaking, anyone who offers professional services for a fee has potential liability exposure of unknown magnitude. The genius of insurance, however, is that it converts an uncertain, potentially devastating loss into a known, small cost for which you can budget.

With that said, many inspectors still inquire about E&O insurance’s relevancy and necessity in the profession. I detail the pros of having E&O insurance as part of your liability protection in this week’s video blog.
(more…)

(more...)

The Typical Home Inspection Claim Runaround

Tip #42 - The Typical Home Inspection Runaround Claim RunaroundI’ve now been successfully defending home inspectors against meritless claims for a decade now, and with over 1,000 claims under my belt, I feel I’m qualified to describe the typical home inspection claim runaround competent home inspectors like yourself receive when dealing with an “issue” that really isn’t your “issue” at all.

I recently received a phone call from an inspector who was STILL dealing with an issue after two-plus years. The attorney representing him had, not surprisingly, been running up massive legal fees in the six figures without even the slightest desire to terminate the case. Why would he? His interests lied in his own billable hours driving fees as high as possible.
(more…)

(more...)

All About Arbitration – Who Should Pay?

Tip 44 - All About ArbitrationA Connecticut home inspector recently wrote to me about a “finding” he heard at a local law course, in which he has told that the American Arbitration Association (AAA) is now looking at DEFENDANTS for a substantial sum of money when a claim initiates.

This law course “professor” instructed the students to specify arbitration using an attorney qualified to arbitrate and with related experience.

He asked for my opinion – henceforth this week’s video tip!

I believe the AAA is feeling the financial pinch just like the rest of us and believes pushing the financial burden to the defendant is just what the doctor ordered to gin up a slew of new arbitration matters by removing the financial disincentive to the filing of ludicrous claims.

Home inspectors can head off this change by inserting key phrasing in their pre-inspection agreement. Watch the video tip below to find out the exact verbiage plus listen to why I believe the “professor” was wrong in saying that inspectors should demand an arbitrator have home inspection-related experience.
(more…)

(more...)