Errors and Omissions Insurance, also known as Professional Liability insurance, covers professionals for negligent acts which stem from the professional services offered.
E&O Insurance Policy Limits: Level A ($1,000,000 aggregate / $1,000 deductible) Level B ($500,000 aggregate / $1,000 deductible) Level C ($300,000 aggregate / $1,000 deductible)
All policies include:
Corporation Coverage
If you operate as a corporation, optional coverage is available to protect the assets of the corporation. Adding corporation coverage to your policy protects the corporation in the event it is named as a defendant in a lawsuit. However, if an employee or a sub-contractor prepared the appraisal, corporate coverage will not apply unless the employee or sub-contractor is also insured.
General Liability
The general liability policy covers bodily injury, property damage, personal injury and advertising injury to others. The policy limit is $1,000,000 each occurence / $1,000,000 aggregate with a $500 dollar deductible.
Fidelity Bond
FREA offers fidelity bonds in the amount of $5,000 or $10,000. Purchasing a fidelity bond (a.k.a. honesty bond) protects your clients against possible theft while you're at a residence/site. It offers the client piece of mind and provides the appraiser with a valuable marketing tool.
Coverage Type Level A 1 Million Level B 500k Level C 300k Deductible E&O $895 $875 $850 $1000 Corporation $90 $88 $85 $1000 General Liability $450 $450 $450 $500 5K Bond $75 $75 $75 $100 10K Bond $135 $135 $135 $100
What is a claims-made policy?
A "claims made" policy protects the policyholder against claims or incidents that are reported while the policy is in force, or during an "extended reporting period". The negligent act, error or omission must have also occurred during the specific time frame set by the policy.
What is the difference between a claims-made policy and an occurrence policy?
With an occurrence policy, the claim has to occur during the policy period, regardless of when a claim is actually made or reported. On a Claims Made policy, the claim must be made or reported during the policy period regardless of when the claim actually happened.
What is General Liability?
General liability covers bodily injury and property damage while you are at the inspection. (ex: your ladder falls through a window and injures the owner's child.)
Are my employees or sub-contractors covered under my policy?
No. Our policy covers the individual appraiser only. Each employee/sub-contractor needs to obtain their own E&O policy.
Do you cover trainees?
Yes. FREA will insure a trainee provided their supervising appraiser is also insured. Proof of their supervisor's insurance coverage MUST be submitted with the trainee's application.
How long does it take to get an insurance binder?
It typically takes 3-5 business days to receive a copy of your insurance binder via FAX. An original binder along with your policy will be mailed to you in approximately 4 weeks.
What happens if I get a claim?
Appraisers insured under FREA's policy who receive a claim call the FREA office and speak to FREA's General Counsel. He will discuss your claim with you and help you manage and contain the issue in an attempt to resolve it without the insurance company's involvement. This strategy has helped us keep our claims down which in turn keeps our rates low.
Can I lower my rate by getting a higher deductible?
All premiums and deductibles are pre-set. We do not offer a deductible higher than $1000.
Do you have an installment plan?
Yes. FREA's installment plan requires an initial payment of $295. This includes a $100 non-refundable enrollment fee. The balance will be billed in 3 installments, due every 90 days. Automatic debit is also available.