Professional assessment of the value of vehicles, real estate, securities, other property objects is carried out both by private individuals and specialized enterprises. In order to minimize possible losses that may be incurred as a result of valuation activities, there is liability insurance for an appraiser of a legal entity.
Participants in the contract process
Valuation activities in the country are carried out in accordance with applicable laws. Such work can be carried out both by independent entrepreneurs - individuals and legal entities. The evaluating organization must have at least two registered employees on its staffing table. In order to carry out valuation activities, a legal entity must enter into an agreement and insure its liability to third parties, while the term of the agreement must be at least one year.
Mandatory liability insurance of the appraiser is also carried out for private entrepreneurs who professionally provide property valuation services. They must also be members of the union of appraisers and, among the permits, must have an insurance policy.
Legal entity appraiser liability insurance contracts are concluded in favor of third parties who, upon the occurrence of an insurance event, will be recognized as victims.
Object and risk of insurance
For the specified type of liability insurance, property interests of legal entities are considered insured, with which real estate appraisers engaged in appraisal activities have entered into an employment contract. As a result of their professional activities, appraisers can cause property losses to customers.
The appraiser must be a legal entity with specialists in the staff, then the risk of possible property losses caused by the professional actions of its employees is recognized as insurance risk for liability insurance. Damage may be caused as a result of non-compliance with the approved assessment standards, rules for the implementation of assessment work.
Insurance case
When liability insurance of an appraiser of a legal entity, the insurance company is obliged to accrue and pay compensation in the following events:
- Errors, shortcomings, omissions were made by accident. The real estate appraiser applied the wrong valuation methods, inadvertently missed the facts affecting the final valuation result.
- The property claims of the injured persons for compensation for losses were presented during the validity of the insurance document. Damage must be documented.
- The resulting property loss is directly related to the employee of the appraiser. He must be a legal entity, and the specialist must be on his staff.
- The decision to pay insurance compensation was made by the court. There are also situations when the policyholder, real estate appraiser and insurer decide the issue of compensation without filing a claim.
Insurance cover
In accordance with applicable laws, insurance coverage for liability insurance of an appraiser of a legal entity cannot be less than 300,000 rubles.Such a sum insured is established for valuation of property items, rights of claim, debt obligations. If the real estate appraiser determines the cadastral value of the material object, then in this case the minimum amount of insurance coverage should be at least 30 million rubles.
In addition to determining the amount of the insurance agreement as a whole, the subjects of the contract can determine the amount of liability of the insurer for each individual event. When liability insurance is carried out by a legal entity appraiser, the conditions of the document may include insurance coverage for moral damage or material loss received.
Also in the contract may be prescribed as a separate paragraph reimbursement of legal expenses. As a rule, the limit on this risk is not more than 10% of the total insurance coverage.
Insurance payment
The size of the insurance premium is determined based on their total amount of liability of the insurance company and the tariff. The final cost of insurance is affected by the types of risk that the legal entity wants to insure when evaluating the liability of the appraiser. If the contract provides for the use of a franchise, then use reduction factors. The extension of the insurer's liability and the inclusion of moral damages and other individual insurance events leads to an increase in insurance premiums. The contract can be concluded for a year, a couple of years or several months. In this case, correction factors are applied depending on the insurance period.
The procedure for concluding and terminating the agreement
In order to conclude an appraiser liability insurance contract, a legal entity must submit an official application to the insurance company. The policyholder must present registration documents, permits, copies of professional documents of working employees to him. The insurance company has the right to verify the accuracy of the data provided.
After agreeing on all the clauses of the agreement to be concluded, the appraiser is obliged to transfer insurance payments to the insurer's bank account or deposit cash directly to his cash desk. The contract begins on the day after receipt of insurance premiums or from the date specified in the document.
The contract terminates in such situations:
- expiration of insurance;
- payment of the full amount of insurance coverage;
- liquidation of the insured or insurer;
- non-payment of the next part of the insurance payment;
- at the request of the insured.
It should be remembered that the liability insurance of the appraiser, both a legal entity and individual entrepreneurs, is mandatory for carrying out its work and recording its results in accordance with applicable laws.