No appraisal company or individual appraiser should be unprotected, and many lenders require appraisers to carry General Liability insurance. The proper insurance program offers you peace of mind that you, your employees and the business you built are protected from claims that have the potential to bankrupt you. We offer custom Appraiser Insurance tailored for the industry, including General Liability, Professional Liability, Business Auto, Property, Worker’s Compensation and more.
Since appraisers generally don’t have clients visit their offices, the risk of injuries is quite low. But delivery people, service contractors and others who arrive on the property could injure themselves unexpectedly. Even a minor accident, such as tripping over the lip of a doormat, could result in costly medical claims.
And in the event something goes wrong during an appraisal, you need protection. For instance, you could be appraising a home and accidentally knock over a lamp or track mud or other staining materials on carpets. General Liability insurance would recover the cost to repair the item or reimburse the owner for the value of the ruined property.
Clients are frequently dissatisfied with the calculated property value more than any actual mistakes, which is a frequent reason for filing a lawsuit. Legal costs are covered by Professional Liability if you’re sued for errors in oversight or failing in your valuation efforts. Lawsuits, justifiable or otherwise, can be extremely costly to defend.
Workers’ Compensation risks are injuries that could occur during the appraisal process, traveling to or from a job site, or while in the office. Typical injuries are trips/slips/falls, muscle strains, and lacerations that require medical attention. Most states require all business to carry Workers’ Compensation.
Auto accident liability is a concern since appraisers typically travel to conduct business. Vehicles may also be used for other business purposes such as running errands and delivering documents. Business Auto covers company-owned vehicles and Non-owned and Hired Auto liability can extend coverage from liability resulting from employee-owned and rented vehicles..
Appraisers typically own or rent office space that is at risk for damage from catastrophic weather, faulty plumbing or electrical wiring, vandalism, and other factors. For example, high winds can knock down trees damaging a roof or other areas of a building. Property Insurance covers the cost of repairs and replacement of any contents that may be ruined. If damage to the property is severe enough to interrupt business operations, Business Income covers the loss of income until operations can resume.
Crime Insurance covers theft by dishonest employees, whether through embezzlement or outright stealing of cash or property. It also covers the loss of money or property stolen from clients by the appraisal company employees if the policy is correctly endorsed.