Tuesday, September 29, 2015

Appraiser E&O Insurance: Understand the Concepts of "Claims Made" and "Prior Acts" Coverage in Your Policy

When it comes to E&O insurance, all appraisers should take the time to understand the concepts of "claims made" and "prior acts" coverage in their policies.

Let's start with this basic fact -- all E&O insurance sold to appraisers and similar professions is "claims made" insurance coverage. To understand how claims made coverage works, let's consider the following simple claim situation: an appraiser performs an appraisal for a lender in 2006. The appraiser is sued by the lender over that appraisal in 2015. The appraiser had E&O insurance in place in 2006 and continues to have coverage in 2015, when he is sued by the lender.

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