One of the most common ways that litigation arises for our policyholders is something that they never saw coming. Many times engagements in business valuation or M&A transactions include the outsourcing of real estate appraisals. Often professionals are shocked to find out that they are being held responsible for the mistakes that were made in those outsourced evaluations.
Any error or omission that was made while the appraisal was being prepared can come back as a liability to your firm. That’s why I strongly urge you to make sure that your policy not only covers the work that you are providing but also covers the work that you might be outsourcing to other professionals. As an extra line of defense, you should also make sure that the business that you outsource to has its own Errors and Omissions policy and names you and your firm as an additional insured.
Program Insurance specializes in your industry. We make sure you have the right coverage for you and your business. If you would like to see how Program Insurance can help you improve the sustainability of your practice, let us know.