Errors and Omissions Insurance for Appraisers and Do Appraisers Need E&O Insurance?
As a professional in any industry, anything could go wrong, at a moment’s notice. Although Appraising isn’t necessarily a high-risk job, it does come with an abundance of responsibilities. It is your duty to investigate a piece of property and provide the client with a reliable quote. Unfortunately, clients aren’t always so easy to please. If one isn’t satisfied with the results, they could very well file suit against you and your organization. Insurance can help.
First, obtaining E&O or errors and omissions insurance is highly recommended. This type of insurance, which is also referred to as professional indemnity insurance and Appraisers Errors and Omissions Insurance (Liability Insurance for Appraisers) is designed for your protection.
In some situations, this business insurance is required by the law of your province or demanded by your client, but obtaining it is beneficial regardless. If there is a possibility that a client will sue you, you should obtain Appraisers E&O Insurance, before performing any service for that individual. As an appraiser, anything could go wrong and E&O can provide you with a little peace of mind. Below, you’ll learn more about what is needed.
The Downfall Of General Liability
Many appraisers believe that they’ll be safe, as long as they obtain general liability insurance. This couldn’t be further form the truth. General liability is normally only utilized, when property is damaged or bodily injury occurs, at your place of business or the client’s location. As the name suggests, errors and omissions insurance is specifically designed to protect your business from errors you make. This type of insurance is also frequently referred to asprofessional liability insurance and malpractice insurance. Although general liability insurance is helpful, you should not perform a service, without E&O Insurance for Appraisers, as well.
Errors That Could Arise
As an appraiser, you have many responsibilities and anything could go foul. Unfortunately, there are numerous reasons that a client could lash out at you and your organization with a lawsuit. Below, you will find a list of potential problems, which could result in legal action.
- Erroneous or inaccurate documentation
- Fact verification failed
- Missing agreed deadlines
- Failing to represent the factors
- Loss of data or mishandling of data
- Theft carried out by an employee
- Selling trade secrets
Truthfully, the list could go on and on. As someone, who appraises property consistently, you should easily be able to see the enormous value of this type of Appraiser E & O Insurance.Request a Quote now to get started.
Appraisers Errors and Omissions Insurance
A civil lawsuit can definitely take its toll on your bank account. Litigation and court costs can typically bankrupt an appraisal company, which is why you should protect yourself with errors and omissions insurance (E&O Insurance) coverage. The coverage will include, but not be limited to legal defense fees, resulting judgment payouts, and court costs according to the limits of the insurance policy.
This policy will cover your business entirely including your employees and any independent contractors that you hire. Many appraisers make the mistake of only trying to protect themselves from civil claims, but you must remember that you are responsible for everyone that you hire.
Conclusion
As an appraiser, you will always be at risk of miscalculations and other errors that can end up ruining your entire business. LiabilityCover offers the best appraiser errors and omissions policy rates in Canada.