TOPIC: Unlawful or just Unethical?

I was recently contacted by a large Contract Company that hires inspectors, yard workers, maintenance guys, etc., mostly on REO properties or bank owned. Not full blown inspections, but verification of occupancy, or repairs made, or grass mowed,maid service, etc. They claim to give out 200 or more per month in my area. These "drive-bys" pay an average of $10-$15 each. Not much, but if one could do, say 10 per day, it may be worth it, and I need more business. My issue is their REQUIREMENT for you to drop your present insurance, and buy one of three choices of insurance companies they approve. A link to each company is "conveniently" provided within their vendor application. I had a real issue with this. For one, I like my local insurance rep. My state does not require E & O, only GL. This company requires E &O and require my purchase of it from THEIR company, and my promise to switch when my insurance comes up. This sounds unlawful to me, and if not, at least it seems unethical. Are my standards too high about ethics? I opted out, solely because I don't want to change insurance, and I'm not busy enough to purchase E & O. When I get busier, I realize the need for E & O, but I don't want anyone telling me which company I HAVE to use? Anybody see it differently than me?  ???

That is a little odd that they'd require specific companies. Were they well known inspection E&O carriers at least?

I'm not sure,Dom, but I went to one of the websites, and they seemed legitimate, but we all know that doesn't mean much. I think they were all based out of New Jersey. Just for kicks, I filled out the "request a quote" form, I expect they will call or email me during the business hours of the upcoming week.

That sounds like what I call conveniently odd. The fact they require or accept E&O from only 3 providers makes me wonder if there is a kickback in the works. Why would you need E&O if you are driving by and making an observational determination? Keep us posted.

Aaron

My thinking exactly, Aaron. They are not all drive by's, some are verification that insurance work has been performed, or even a maid service was performed, which would require entry into the home, though none are "full blown" inspections. I can see why some companies would require E & O, and though I can't afford it now, I think E & O is or will become a necessity for any Home Inspector. My problem is only accepting this insurance from "their" approved companies. If I need E & O, then I will choose my provider, thank you. I'm like you-sounds like kick-backs or maybe this company owns or has interest in these 3 selected insurance companies. If it looks, feels, smells, and acts like a rat-it's probably a rat!! www.safeguardproperties.com

I lucked into already having E&O as it was required (through any provider of my choosing) to do the Wind Mitigation Inspections here in Florida. I was in contact with a company similar to what your talking about through an add I found via Craigslist. It turned out to be a no go, after a few emails it was clear these folks didn't have their act together.

Aaron