TSPS MAR APR 2024 FINAL - Flipbook - Page 12
INSURANCE
THE 1ST THING
YOU MUST DO
IF AN ERROR
OR OMISSION
IS ALLEGED
t has been said by many a surveyor that they have never
made a mistake and have never needed to 昀椀le an Errors
and Omissions claim. And while that can be the case,
they should add the word “yet” to that sentence. You will be the
rare surveying 昀椀rm if you make it through your career without
someone on the team making a mistake that causes a client harm.
When that day happens, the very 昀椀rst thing you must do is
call your insurance agent and let them put your insurance company on notice. E&O policies contain provisions that void your
coverage if you admit liability prior to reporting the circumstance to them.
Don’t jeopardize your coverage by acknowledging that
you have made a mistake until it has been reported to your
carrier. Errors and omissions can be costly, or even catastrophic, if not handled properly. If a possible error is brought to your
attention, it is very important that you notify your agent before
going any further.
I
DO:
• Contact your agent right away.
• Use this wording with an unhappy client: “I see what you are
saying but I need to get my insurance agent involved before
we go any further. I don’t want to do or say anything that
could void my coverage.”
• Gather and organize all records related to the mistake.
DON’T:
• Acknowledge your mistake even if it is obvious.
• Make any admission of liability or wrongdoing.
• Attempt to settle the claim on your own
• Offer or make payment or mitigate the claim in anyway until
reported to the carrier.
• Discuss the issue with anyone other than your insurance
agent, claims representative or legal counsel.
10
THE TEXAS SURVEYOR March 2024
Note: In General Liability & Property claims the opposite is true.
Anything you can do to mitigate the amount of damage, do it the
moment you can!
WHY SHOULDN’T I SAY SOMETHING?
When you become aware of an error or potential error on a job,
it is crucial that you not acknowledge the mistake UNTIL we
have reported it to your insurance carrier. This may be dif昀椀cult
when you are with a good client and the error is obvious to you,
but you may 昀椀nd your claim denied by the insurance carrier if
you do. Neither you nor your client want your coverage compromised so explaining the coverage terms will allow you time
to get the matter reported.
HERE’S THE FINE PRINT:
Below is a sample of one of these provisions.
Section III. and XI. of the Policy. Section III. of the Policy,
“DEFENSE, INVESTIGATION & SETTLEMENT”, states, in relevant part:
(B) Investigation and Settlement of Claim
An Insured shall not, except at its own expense, make any payment, admit any liability, assume any
obligation or incur any expense without the prior written consent of the
Company. The Company shall not
be liable for any settlement, expense,
assumed obligation or admission to
which it has not given its prior written
consent.
GINA O’HARA
Senior Vice
President, ANCO
Insurance