Most of us need to reconsider our assets and risks, along with how we operate as a business. Sole proprietors have the greatest risk. Perhaps operating as an Llc or corporate appraiser makes sense for those with significant assets to protect.

As a practical matter, one can not do work effectively anymore without E&O. The ONLY reason I carry it is because half of my most probable clients require it.

What E&O carriers COULD (should?) start doing is fighting back in cost effective ways. For example, can they claim the E&O is a confidential contract between the carrier and the insured, and no copy of its policy or Limitations endorsement page may be attached to any appraisal report (as some AMCs require)?

The OTHER problem though is one E&O insurers bring on themselves. Like ALL insurance companies, they look at a defense cost of say $50,000 and agree to settle for close to that amount.

That only encourages folks like MLRG to sue because they KNOW IT WORKS!

As an alternative, let them set up paralegal workshops for appraisers to defend themselves. Most of us can answer the facts of a summons and complaint successfully enough to prevail in a jury trial. Where we go astray is in the procedures part required by specific courts. It is no more than the “form” portion of the war, but it is an important one.

Unless an appraiser HAS performed in an egregiously deficient manner, there is NEVER a good reason for an E&O insurer to settle or fail to litigate to a successful conclusion.

“Grow a pair” and start fighting these frivolous suits, and they will stop. Its as simple as that.

If you wont set up the very low cost paralegal defense system for appraisers, then form a coalition of E&O insurers to take on a couple sample cases, and make the costs of prosecuting it so high, that these ambulance chasers go back to , well, ambulance chasing.

This is exactly why I dumped my E & O along with my 20 year business in 2009! In World War I pilots had one option if their plane caught fire: a pistol for an easy out (no ejection seat, no parachute). I feel for those who are still involved in this “profession”. Appraisal careers today come equipped with an ejection seat but it does require a bit of courage on the part of the appraiser to manually reach for the ejection handle.

Appraisers are getting decent fees and are busy as bees. I can offer you a 100% guarantee that the decent fees will dry up as rates rise more. If you haven’t considered reaching for your ejection seat handle you may want to consider it now.