sixgun95 Posted February 27, 2009 Report Posted February 27, 2009 As many of you know I have sold my business, now comes the question of tail insurance. Spoke to FREA today (my carrier), a 1 yr policy is $1250, a 4 yr is $2450. I would like the 1 yr. but when you consider anyone can sue anytime for anything, my gut tells me the 4yr option is the best. Would love to hear your opinions and recommendations?
hausdok Posted February 27, 2009 Report Posted February 27, 2009 Is there a legal option in your state where you can put something in the paper that says you've gone out of business and all claims made against your country must be made within such and such time or claimants forfeit any rights? Just casting around here, I haven't got a clue, really. ONE TEAM - ONE FIGHT!!! Mike
sixgun95 Posted February 27, 2009 Author Report Posted February 27, 2009 Hmmmm..worth calling my attorney to ask! Anyone from TN know this answer?
Mark P Posted February 27, 2009 Report Posted February 27, 2009 Since you sold the company and the PIA were between the client and the company would not any law suits be filed against the company? Whoever bought the company also bought the liability. Like Mike I don't know, but it seems rational. Personally I would not spend money on tail insurance, but that is just me.
Steven Hockstein Posted February 27, 2009 Report Posted February 27, 2009 Did you have an attorney review your contract to sell the company? How is this for an idea? Include a no compete clause and as part of the consideration for this benefit, the buyer should pre-pay for the tail insurance on your behalf. **Disclaimer--I am not an attorney so this is not legal advice.
Scottpat Posted February 27, 2009 Report Posted February 27, 2009 As many of you know I have sold my business, now comes the question of tail insurance. Spoke to FREA today (my carrier), a 1 yr policy is $1250, a 4 yr is $2450. I would like the 1 yr. but when you consider anyone can sue anytime for anything, my gut tells me the 4yr option is the best. Would love to hear your opinions and recommendations? I would not worry about it. You might have somthing else to worry about if you have done some inspections in the state. The state website does not show you (Nick or Nicholas Tucci) as having a home inspector license! The site does list a Nicholas Tucci from New York who has applied for an Engineers license, but it has not been approved. State of TN License Board How many inspection have you done?
sixgun95 Posted February 27, 2009 Author Report Posted February 27, 2009 Scott - In the essence of maintaining my privacy, the name provided is my online profile. You may disageee, but in this day and age its smart. Why did I do that? For folks who want to see my personal info whom do not need it. My license number, address, etc is not significant to this forum or any other IMO. The only reason you ask to to measure up the competition, I get it. BTW this is the 2nd time you have asked me this ( 2 yrs ago?) I can assure you my name and business is listed with the state of TN. I am licensed, insured, etc. All legit! With that said, I sold my business. How about the Tail Insurance... For those of you who love being a HI, my hat is off to you. I got into this for the business, not the job. My intent was to grow it and hire inspectors. Didn't quite work out, but hey at least I tried. Dealing with whiney ass people, attorneys, real estate agents who don't give a crap about nothing other that $$, it truly makes me sick. It was satisfying when you helped clients. So I am going back to being a full time commercial pilot (RW/FW).
Scottpat Posted February 27, 2009 Report Posted February 27, 2009 Scott - In the essence of maintaining my privacy, the name provided is my online profile. You may disageee, but in this day and age its smart. Why did I do that? For folks who want to see my personal info whom do not need it. My license number, address, etc is not significant to this forum or any other IMO. The only reason you ask to to measure up the competition, I get it. BTW this is the 2nd time you have asked me this ( 2 yrs ago?) I can assure you my name and business is listed with the state of TN. I am licensed, insured, etc. All legit! With that said, I sold my business. How about the Tail Insurance... For those of you who love being a HI, my hat is off to you. I got into this for the business, not the job. My intent was to grow it and hire inspectors. Didn't quite work out, but hey at least I tried. Dealing with whiney ass people, attorneys, real estate agents who don't give a crap about nothing other that $$, it truly makes me sick. It was satisfying when you helped clients. So I am going back to being a full time commercial pilot (RW/FW). Sorry whoever you are for doubting you. I been told that it was not nice for me to question your post, for this I eat humble pie. To answer your question. I would not buy tail coverage as TN at this time does not have a limitation of liability. In other words, you could be named in a lawsuit for an inspection for about the next 7+ years. In two years of business, especially during this slow period I would guess that you have done less than 300 inspections. I would assume that you did them all to the best of your ability, consequently your exposure is very small.
sixgun95 Posted February 27, 2009 Author Report Posted February 27, 2009 Scott - Thanks for your reply. I have done 200 ish inspections. Its kind of scary to know some disgruntled home buyer can sue you long after the inspection is done. FREA said anything longer than 4 yrs the judge would probably just laugh them out of court..in their opinion of course.
Scottpat Posted February 27, 2009 Report Posted February 27, 2009 Scott - Thanks for your reply. I have done 200 ish inspections. Its kind of scary to know some disgruntled home buyer can sue you long after the inspection is done. FREA said anything longer than 4 yrs the judge would probably just laugh them out of court..in their opinion of course. I would not worry about it. When I quit inspecting (I still have a 12 year old at home and a son heading to pharmacy school) most likely in about 15+-years I will not get tail coverage. If I quit right now I would not get tail coverage, and I have around 5,000+ inspections under my belt.
Jim Katen Posted February 27, 2009 Report Posted February 27, 2009 Scott - Thanks for your reply. I have done 200 ish inspections. Its kind of scary to know some disgruntled home buyer can sue you long after the inspection is done. FREA said anything longer than 4 yrs the judge would probably just laugh them out of court..in their opinion of course. Let's do some math. 2 years of E&O insurance with FREA is about $7,000 4 years of tail with FREA will be about $2,450 That's almost $10k of insurance to cover 200 inspections or about $50 per inspection for insurance alone. Woof. My advice: take $2,500 and tuck it away in a safe investment vehicle. If anyone ever calls, the chances are that your 2.5k will cover it. If no one ever calls, you'll have a couple of bucks that you can use to stimulate the economy. Unless you were a really crappy inspector, in which case I'd say give the money to FREA. - Jim Katen, Oregon
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