Independent appraisers recognize the need for liability insurance coverage for their businesses. However, they may fail to realize that there are specific exposures which may not be covered by the businessowners, commercial general liability, or professional liability policies. Errors and omissions coverage is often excluded from the broader policies such as the businessowners or commercial general liability policies. Appraiser e & o insurance coverage needs can best be determined by a licensed insurance agent or broker.
Appraiser errors and omissions coverage provides for payment for certain losses or damages which are normally not covered. Losses may be covered if they are caused by unintentional errors or omissions on the part of the appraiser.
In addition to being diligent in proofreading and double checking reports, appraisers should consider other mistakes that could be made which might lead to a lawsuit. Promises of the outcome of an appraisal report could lead to a lawsuit. Failing to follow up on negative information or the hint of an irregularity could lead to a lawsuit.
The current homeowner market affords additional opportunities for prior appraisals to come under scrutiny. Records of past appraisals and supporting material may need to be retained for longer periods of time. With appraiser e & o insurance, there is confidence in knowing that should a lawsuit be filed, legal representation would be available.
Adequate appraiser e & o insurance coverage can be easily obtained. Unintentional omissions and errors are never planned, but your insurance agent or broker can help you plan for the unexpected.