E&O insurance Blog Posts

Tuesday, June 3, 2014

Whether in the field or at the office, there’s much at stake every day. Yet, many of us continue to overlook the importance of professional liability insurance.

Commonly known as errors and omissions - or E&O - insurance, these policies are designed to protect you against legal recourse should a lawsuit be filed against you. However, not all policies are created equally, and premiums are continually on the rise. So what’s the story behind these additional costs?

Tuesday, May 20, 2014

When it comes to real estate, risk is the name of the game. While it’s impossible to predict the future, there are steps you can take to prevent or defend against lawsuits brought about by errors and omissions made during the delivery of your services. Today, we’ll show you why taking a proactive approach to mitigating your risk matters so much.

Friday, April 25, 2014

In This Episode - Earlier this year, Fannie Mae announced the launch of its Appraiser Quality Monitoring system, or AQM. Essentially, the AQM is a government-derived type of system that monitors the quality and consistency of your appraisal reports. With this system in place, the agencies will be able to determine whether your work requires consistent, ongoing review or if you will end up on government-level “do not use” list.

Wednesday, April 23, 2014

About Cornerstone Report Radio with Brian Trotier

Cornerstone Report Radio was created for real estate professionals like you who want easy access to information when you’re out in the field. If you don’t have time to read a lot of articles and blog posts, these short, 10-minute episodes will give you the information you need to stay up-to-date on trends and issues that affect your work and your livelihood.

Tuesday, April 15, 2014

Thinning wallets and dwindling fees for work performed are nothing new for the appraisal community. Yet in their latest income-reducing move, AMCs have sparked an outcry by requiring appraisers to foot the bill for additional services. These charges are further cutting into appraisers’ fees, which already suffer from AMC management fee deductions.

Recently, FREA uncovered two hidden costs being introduced by AMCs – which of these have you experienced?

 

Technology Usage

An increasing tendency among AMCs is the passing of technology fees on to appraisers. When an AMC orders a home valuation, the appraiser must submit the report through the AMC's authorized software. However,...

Monday, February 17, 2014

We recently spoke to an adjuster for a homeowner’s insurance company that is asserting a subrogation claim against the inspector's E&O policy. In our opinion the adjuster is trying to squeeze some money out of the inspector’s E&O carrier because the  insurance company the adjuster works for had to pay a claim made by the homeowner.  What makes this claim so crazy is that the inspection report in question wasn’t even written for the homeowner that reported the claim. The inspection was for an entirely different potential buyer who elected not to move forward and walked away from the deal.

Subsequently, another potential buyer appeared and was...

Tuesday, January 28, 2014

In helping real estate professionals find the right professional liability (E&O) insurance policy, one of the most common issues we come across is whether someone you hire to help with your intermittent workload is an employee, a subcontractor, or an independent contractor.

The IRS perspective vs. the insurance perspective

This is often confusing because what you intended to do may not be what you actually end up doing. There are a number of reasons for this. First and foremost is the fact the IRS will view this question in a different way than the insurance industry will. So, even if you get solid tax advice about which...

Tuesday, December 17, 2013
Does this sound familiar? If so, I hope it’s because you watch a lot of shows like Law & Oder on television and not for any other reason. If this doesn’t sound familiar, it is one part of the Miranda warning police must give to criminal suspects before questioning them. How does that apply to you? Well, it can have equally negative consequences in a civil case (insurance claim) also. 
 
To see if you need to read any further, take this short quiz. If you answer “yes” to any one of these questions, you’d better read it all. 
     1....
Tuesday, November 26, 2013

In many complaints or claims against home inspectors the real culprit may be the seller of the subject property. Many times the seller, in an effort to get the maximum price for the property, may omit disclosure of certain defects or in some cases (gasp) may even have tried to hide a defect or two to make discovery by the inspector or buyer more difficult, if not impossible. Sometimes this happens with the help of the listing agent and one or two local contractors.

The failure to disclose or even the occasional intentional deception may not be discovered until months or years later...

Tuesday, November 19, 2013
First, it is gratifying to know you are actually reading what we write and release. We know this is true because a little over a year ago, we received very few questions about subpoenas and today, after writing a little warning piece on the now infamous FDIC subpoenas being issued to appraisers by a private law firm, we get lots of questions. In fact, we get so many we decided to put together a short follow-up piece on different kinds of subpoenas and how to handle them. These are presented in ascending order of concern with the final one being the most dangerous....