Insurance Exclusion for Discrimination Claims?
The bad news for appraisers is that when it comes to professional liability (E&O) insurance for most professions, the majority of policies come with an exclusion for discrimination related issues. Just like you would expect to find a fraud exclusion on your policy, exclusions for discrimination are incredibly common across many different professions—including the appraisal profession.
For example, here is an exclusion found in the policy of one of OREP’s competitors:
Discrimination of any kind by the Named Insured, including but not limited to discrimination due to or on the basis of age, sex, race, color, religion, disability, marital status, pregnancy, national origin, HIV or AIDS status, sexual origin, sexual orientation, or sexual preference;
In other words, most appraiser policies have exclusions for discrimination. This is bad news for appraisers.
However, the good news is that OREP has been closely monitoring this issue and proactively worked with its primary carrier to address it. OREP’s primary individual appraiser E&O policy, for example, now includes up to $200,000 in coverage for any claim brought against appraisers alleging discrimination. (Up to $500,000 for Appraisal Firms.)
Here is the wording straight from OREP’s policy:
The Company will pay, as part of the applicable Limit of Liability, up to $200,000 to the Named Insured for Damages and Claims Expenses as a result of all Claims…for discrimination on the basis of race, creed, color, age, gender, national origin, religion, disability, marital status or sexual preference, including resulting Personal Injury.
Including $200,000 of coverage for discrimination claims for individual appraisers makes OREP’s primary policy uniquely positioned to keep appraisers protected in today’s litigious climate. Not every OREP policy includes the coverage, so please ask your agent to ensure the coverage is included.
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