Ask Henry

E & O Insurance

Dear H2,
Last week I received an email from Corelogic indicating that I should include their company name on my E & O insurance as the certificate holder if I need to receive orders. Although I have been with them for over 4 years, the past 2 years I have received only 2 orders from them. Is this legal on their part? Am I really obligated to put every AMC we do business with on our insurance? I told them that I will not have their name on my policy and they should get their own insurance. I do have my own insurance with $1 million dollars coverage. Any advice will be great. Thanks in advance.

Sargon Simon
Tri-Valley Appraisal Services

Dear Sargon,

It is quite common for companies to ask their vendors to be added to their policies as "additional insured" or to provide a certificate of insurance. I have never heard of this practice being illegal. This is not the same as getting their own insurance, which if obtainable, would be very costly. I suggest that you contact your insurance agent/company and ask what the cost would be to comply with their request and what steps you would have to take to obtain what they want. With this information, you would be in a better position to decide whether or not to comply with their request. My overall advice is that whenever you can do something to accommodate a client, you should try do it if you can, as it builds good will.