Inspection and Appraisal Companies--Inspecting for Insurance or Valuation Purposes

What Does GL Code 96317 Cover?

ISO GL class code 96317 covers inspection and appraisal companies primarily engaged in inspecting for insurance or valuation purposes. This includes businesses that assess property condition, damage, or value on behalf of insurance carriers, financial institutions, or for real estate transactions. The code specifically classifies operations involving detailed evaluations and reporting.

Who Uses This Class Code?

Businesses that fall under this code include independent insurance adjusters, property appraisers, real estate valuation firms, home inspection companies, and commercial property inspection services. These entities provide expert opinions and documentation for various financial and insurance-related decisions.

Common GL Claims for This Class

Common claims include allegations of professional negligence due to inaccurate appraisals or missed defects during inspections, leading to financial loss for clients. Property damage occurring during the inspection process, such as accidental damage to a client's premises, also represents a frequent claim scenario.

Coverage Tips for Code 96317

• Ensure your professional liability (E&O) coverage is robust, as errors in valuation or inspection reports are a primary exposure.
• Verify that your general liability policy includes coverage for damage to property in your care, custody, or control, which is common during inspections.
• Maintain meticulous records of all inspections and appraisals, as thorough documentation is crucial for defending against claims.
• In Florida, be aware of specific licensing requirements for appraisers and adjusters, and ensure your insurance aligns with these regulatory standards.