An appraiser provides an unbiased and impartial opinion on the value of a person’s property. Appraisals are most often performed on property like industrial sites, single-family homes, apartment and condo buildings, commercial buildings and farms, but there are also jewelry and art appraisers. Appraisers are often hired for mortgage lending, lease negotiations and business mergers. Appraisers face a variety of risks with those related to their professional opinion being at the top of the list. To protect your appraisal business from lawsuits and other risks, you should get business insurance.
Types of Appraisers Insurance
There are many different types of insurance policies available for your appraisal business. Choose those that cover all your expected risks, including those that might seem less common.
The first business insurance policy most appraisers will get is general liability. This is a basic insurance policy that covers many types of claims or lawsuits made by your clients. For instance, if the services you provide cause loss of money to your client, general liability provides coverage for these legal ramifications.
Any mistakes you make, whether intentional or not, during the appraisal process could result in a lawsuit. This would be covered by professional liability insurance, which may include thousands of dollars in loss to your clients. It is good to have professional liability insurance as well as general liability for added protection.
In the appraisal business, it is quite common to use your own vehicle for various aspects of your job, especially when providing on-site appraisals. Therefore, it is imperative to have business auto insurance. Business auto offers protection if you get into an accident while driving to or from the work site where you will perform appraisals or other business errands. It covers damage to your vehicle, other vehicles involved and bodily injury. You can also add theft and vandalism to the policy.
Your business property is also at risk and, for this reason, you should have a good business property insurance policy. If there is an unexpected event like a fire, natural disaster, snow storm or similar catastrophe, it could destroy your business property and contents. This is a risk for you and your clients if their personal property to be appraised (like jewelry or artwork) is in your office at the time. Business property insurance offers coverage for loss, damage and repairs to the building and contents.
Your employees also need adequate coverage through workers’ compensation insurance. If an employee is working on-site for an appraisal and obtains a broken ankle in the process, this is considered work-related and the medical costs are covered by worker’s compensation. Any illnesses received at work are also covered by workers’ comp. Additionally, income lost as a result of the injury is also covered by the policy.
Appraisers Crime Insurance
You are unfortunately at risk for crimes like theft, vandalism and employee dishonesty as an appraiser. Protect losses from such crimes with a crime insurance policy. Suppose for example an employee embezzles money or someone vandalizes your property, destroying the building or contents, you will have excellent coverage and a way to pay for the repairs or replacing money lost with crime insurance.
As an appraiser, you are at risk for professional lawsuits, damage to your property or that of your customers, and various crimes. The best way to protect your business assets is with proper appraisers insurance.