New Insurance Benefit for RESNET Members

July 01, 2006

A version of this article appears in the July/August 2006 issue of Home Energy Magazine.

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        In today’s litigious society, it is vital that home energy raters and home inspectors have adequate insurance coverage. Not having proper coverage can put a business at risk. And because an increasing number of builders and program sponsors are requiring proof of liability insurance before doing business, it can also make it difficult to grow a business. To help simplify the insurance-buying process for home energy raters, Residential Energy Services Network (RESNET) recently partnered with Lockton Risk Services to develop the RESNET insurance program (see “RESNET Now Offers Insurance Opportunity,” HE Sept/Oct ’04, p. 8). Designed specifically with home energy raters in mind, the new program offers the professional liability, general liability, and property coverage that raters need in order to protect themselves from accidents and potential lawsuits that may occur as a result of business operation.
        General liability (GL) insurance is a key coverage for home energy raters. It is designed to protect the insured from liability claims brought by third parties who allege that the insured is responsible for bodily injury or property damage caused to them. Coverage is provided for accidents of this type that occur at a work site or at a client’s location.While general liability insurance is probably the most basic form of commercial insurance, these policies typically contain a professional services exclusion that takes away coverage for lawsuits arising out of the rendering of or failure to render professional services, leaving what could prove to be a huge gap in coverage.
        Professional liability (PL) insurance, also referred to as errors and omissions liability, is designed to fill the gap left by the exclusion on the GL policy. Because this type of claim can be among the most expensive brought against a professional, it is very important to have adequate coverage. Having professional liability coverage in place helps safeguard the assets of the company and provides defense against claims that may or may not be valid.
        Property insurance protects against loss caused by damage to real property (buildings and other structures) and/or personal property (contents) owned by the business.
        The RESNET insurance program is available only to RESNET members. It offers the coverage raters need to protect their businesses at competitive rates that they may not be able to get anywhere else. Members can choose to purchase all three coverages, PL coverage alone, or a combination of PL and GL, or Property and GL. Different deductible and limit options are available, allowing each rater to get the coverage that best fits his or her specific needs. A team of sales and customer service professionals, who understand the business of home energy raters, offer the assistance raters need to manage their business insurance effectively. All coverage is placed with carriers rated Excellent or higher by A.M. Best, and coverage can also be extended for home inspectors.