The Risks of Driving for Uber or Lyft

Driving Uber LyftUber and Lyft are ridesharing services that have quickly gained popularity. At this point, they are available in most parts of the country, especially metropolitan areas. With a few taps on your phone, you can call a driver to your location. Or, sign up through the same app to become a paid driver yourself.

Many people have turned to these services as drivers for extra income because of its ease-of-use. Just sign into the app and you’re in business. You can work wherever you want, whenever you want, even if it’s just for a few minutes. It can be a convenient way to make a few bucks in the evenings or weekend.

Unfortunately, it’s not that simple. While many people are lauding Uber and Lyft for disrupting the traditional taxi model and giving people an easy employment option, working for either of these services comes with some risk worth considering.

Financial risks
As a ridesharing driver, you are an independent contractor, not an employee of the parent company. Any losses or expenses you incur are your problem. Both services compensate drivers for damage to vehicles caused by passengers, but standard wear and tear, fuel, tolls, maintenance, taxes, and insurance are costs of the job. While injury is unlikely, you are not eligible for worker’s compensation insurance.

Since you are technically working while you drive for Uber or Lyft, standard car insurance won’t cover you if you get into an accident. Most drivers are taking this risk.

Furthermore, the job isn’t as lucrative as it used to be. Both services have increased their percentages of the last few years. Uber and Lyft now takes 20% off the top, which makes it difficult for many drivers to handle the expenses.
Uber says you can make about $25/hour. Lyft reports $35/hour. The truth, however, is far lower once you deduct expenses. The amount you can earn varies widely depending on the area, but at the end of the day, most drivers make about $9-15/hour.

Lyft’s app has functionality for passengers to tip drivers, which can improve the hourly rate significantly. Uber, however, says they want “riders and drivers to know for sure what they would pay or earn on each trip — without the uncertainty of tipping.”

Safety risks
Originally, ridesharing companies pitched their product as a safer alternative to taxis. Using social media logins, driver and passenger identities were public, making assault or crime less likely. Rating systems were designed to penalize people who behaved inappropriately.

But the rapid growth of the industry has made these basic safety features (and they are basic) less effective. Ridesharing services have to recruit new drivers constantly. A reputation-based system doesn’t work when you’re likely to never see that passenger again anyway.

Neither ridesharing app provides safety training for drivers (as this would force them to classify drivers as employees). Both services provide some basic tips for drivers to look out for themselves, but this information is sparse and unhelpful in a dangerous encounter.

OSHA reports that “data indicates that annual homicide rates for taxi drivers (and chauffeurs) from 1998 to 2007 ranged from 9 per 100,000 workers to 19. During that period the rate for all workers was at or below 0.5 per 100,000 workers.” This means that taxi drivers are killed 21 and 33 times higher than the national average.

Presumably, that’s less of a concern for ridesharing drivers because there is no cash exchange. You’ve probably seen sensational headlines, but that’s only because the industry is new and people are adjusting. The real danger lies in motor accidents, of which there are substantially more for ridesharing drivers than the average.

Finally, the background check system is weak. Lyft performs a background check on all drivers. Uber checks the background in only certain states. But there are reports in both apps of people passing the background check who know they shouldn’t.

Decide for yourself
It has become clear the rideshare driving isn’t the “way of the future” it was marketed to be. It’s a reasonable job considering its low barrier to entry, but it’s not something to build a future around. The safety risks aside, driving for Uber or Lyft doesn’t offer a strong financial incentive anymore.

Karen Consiglio
Commercial Claims
kconsiglio@srfm.com

Karen-Consiglio

COBRA Refresher: 4 Important Notices That You Need to Know About

COBRAAccording to the Consolidated Omnibus Budget and Reconciliation Act (COBRA), employers who offer a group health plan for more than 20 employees must offer temporary continuous coverage to qualifying beneficiaries after qualifying events.

A qualified beneficiary generally is an individual covered by a group health plan on the day before a qualifying event who is either an employee, the employee’s spouse, or an employee’s dependent child.

A qualifying event is a circumstance that would cause the qualified beneficiary to lose their group plan. The type of event determines the length of coverage offered, but continuous plans range between 18 and 36 months. Here are some examples of qualifying events:

  • The death of a covered employee
  • A covered employee’s termination or reduction of hours
  • The covered employee’s new entitlement to Medicare
  • Divorce or legal separation from a covered employee
  • A dependent child ceasing to be a dependent under the plan’s requirements

Employees must be offered health care, dental, vision, medical spending accounts, hearing, prescription, substance abuse, and mental health plans, but only if you offered those services under your group plan.

Generally, the qualified beneficiary pays the entire cost of the continuous coverage plus two percent to account for your administrative costs. Employees who take COBRA coverage for a disability can be charged 150% of their premiums for coverage after month 18.

Per regulations, employers are required to provide certain COBRA notices with specific information and timeframes, depending on the circumstances.  Failure to comply with these regulations can result in fines of $100 to $400 per day per qualifying beneficiary.

4 Notices Required by COBRA

General Notice

This document describes employees’ COBRA rights and the employer’s responsibilities. It must be given to each covered employee and each employee’s spouse within the first 90 days of coverage. It needs to have the following information:

  • Name of plan and contact information of the plan’s COBRA administrator.
  • A description of the coverage provided by the plan.
  • Instructions for beneficiaries to notify the administrator of qualifying events or disabilities.
  • An explanation of the importance of notifying the administrator about address changes.
  • A statement that the notice does not fully describe COBRA or the plan, and that more information is available through the plan’s administrator.

Click here to see a sample General Notice.

Election Notice

This document explains the employee’s rights to continuation coverage and how to elect it. The administrator must send an election notice to each beneficiary who loses their coverage due to a qualifying event within 14 days.

  • Name of plan and contact information of the plan’s COBRA administrator.
  • Identification of the qualifying event and qualified beneficiaries.
  • An explanation of the beneficiaries’ right to elect continuation coverage.
  • The date coverage will terminate if continuation coverage is not elected.
  • The process to officially elect the coverage.
  • Outcomes if coverage is waived or not elected.
  • How coverage might terminate early.
  • Premium information, including amounts, grace periods, and schedules.
  • The type and scope of coverage available and how it can be extended for disability or other qualifying events.
  • An explanation of the importance of notifying the administrator about address changes.
  • A statement that the notice does not fully describe COBRA or the plan, and that more information is available through the plan’s administrator.

Click here to see a sample Election Notice.

Unavailability of Continuation of Coverage Notice

Should an individual request continuous coverage, but the plan administrator determines that the individual is not entitled to coverage, the administrator must send a notice of unavailability. This simple document must be provided within 14 days of the original request and explain the reason for denial.

Click here to see a sample Unavailability of Continuation of Coverage Notice.

Termination of Coverage Notice

If an individual’s coverage is terminated early, the employer must provide a termination notice. This notice must include the following information:

  • The date coverage will terminate.
  • The reason coverage is being terminated.
  • Any rights the qualified beneficiary has under the plan (or the law) to elect alternative coverage, such as the right to convert the plan to a private policy.

There is no timeframe to provide this notice, but regulations say it should be delivered as soon as the decision to terminate coverage is made.

Click here to see a sample Termination of Coverage Notice.

Providing proper COBRA documentation with the right content is an important part of staying compliant with the legislation, but you also need to document the method, timing, and last address of your deliveries. This is for your protection in case you are required to provide evidence that you upheld your obligations.

For more information about disclosure rules (such as the allowed methods for delivery and specific timing requirements), see CFR 2520.104b-1(B). For a detailed breakdown of your obligations and FAQ’s, visit the Department of Labor’s website.

Navigating the rules and requirements of COBRA can be confusing and overwhelming. If you have questions or concerns, Sinclair Risk is here to help – Give us a call!

Shannon Hudspeth
Human Resource Director
shudspeth@srfm.com

Shannon Hudspeth

Rhode Island would be first state to impose carbon tax; trucking industry braces for higher costs

Carbon TaxA bill currently under consideration by the Rhode Island legislature would make the Ocean State the first to impose a “carbon tax” on fossil fuel production. This is important news for the trucking industry because if enacted as written it means gasoline and diesel fuel producers will be hit with a new tax which will be passed along one way or another to long haulers.

Meant to accelerate the state’s transition from oil, gasoline, and natural gas to local renewable energy like solar and wind power, it would do so by taxing, among other products, gasoline and diesel fuel. The bill, known as the Clean Energy Investment and Carbon Pricing Act of 2017, imposes a $15 tax on each ton of carbon dioxide or other greenhouse gasses emitted from the burning of a fossil fuel.  Gas and diesel retailers would either have the fee paid by their distributors or collect it at the pump.

Either way, that cost will be coming out of truckers’ pockets.

Meant to be proactive against the effects of climate change, the bill’s intent is to “Create a clean energy and jobs fund to foster innovative practices, which will strengthen Rhode Island’s position in advancing efficient use of energy, make Rhode Island a nationally recognized leader in energy efficiency, stimulate job creation, and enhance innovation-based economic growth.”

These are lofty goals. State Senator Jeanine Calkin of Warwick, sponsor of the bill, called it “our generation’s moonshot and we need to take steps to do it right now.”

Providence Rep. Aaron Regunberg, sponsor of the bill in the state house, added, “The need for this legislation has never been more critical.”

Will it pass? That’s hard to say, but the tendency of politicians to draft legislation that chips away the trucking industry’s bottom line isn’t going away anytime soon.

The Rhode Island carbon tax is just one of many trucking and transportation related issues that we follow closely here at Sinclair Risk. We couldn’t do our job if we didn’t! We pride ourselves on our deep industry knowledge and our proven track record of helping clients mitigate risk and keep their losses low.

Sinclair’s proprietary Risk Safeguard Advantage is a financial risk management system designed to dramatically reduce organizational exposures and premium costs while consistently improving productivity and morale. Elements included for our trucking clients include a driver incentive program, driver qualifications review program, defensive driver training, and expert help on responding to OSHA citations.

Interested in learning more? Check out my recent white paper, “How to avoid getting run over by a massive fleet insurance price increase.”

Jonathan Belek
Risk Management Consultant
jbelek@srfm.com

Jon Belek

8 Steps to Vet Construction Subcontractors

subcontractorAs a general contractor, it’s likely that you’ll use subcontractors at some point. Subcontractors can be an efficient way to outsource work. As specialists, they’ll often do a better job than a generalist and their smaller size means they can work quicker and leaner.

However, the construction job is your responsibility. The performance of the subcontractor will reflect on you. To complete the job properly and satisfy your customer, you need to make sure your subcontractors will produce quality work in a timely manner.

Before you officially hire any subcontractors, protect your business and your customer by taking these steps to vet the subcontractor.

1. Examine their past and current performance

Request information from the potential customer about their licenses, accreditations, history, and references. Look for any public data on lawsuits, disputes, complaints, or bankruptcies. Ask for the contact information of previous contractors they worked for. Then, search for references independently (without the subcontractor’s involvement) to get some unbiased and unfiltered information.

2. Look at their queue of work

It’s smart to make sure potential subcontractors can actually complete the work you need, so you’ll want to examine their log of previous, current, and future work. If the subcontractor seems too busy for their size, your job might overextend them.

3. Ask about their safety practices

Unsafe operations can leave you exposed to liability and force an inspector to close the job site, so make sure any subcontractors have clean or reasonable safety histories. They should also have ample safety protocols in place and a crew who is coached to prioritize safety.

4. Investigate the subcontractor’s employees

Ask the subcontractor about their team. Are they temporary workers, or do they work full time? Have they worked in construction before, or are they new? Does the subcontractor have the proper number of licensed professionals for the site? Do the workers have the right tools and reasonable workloads? Do any have serious felonies or drug problems that might make them unreliable? Answers to these questions will determine whether the subcontractor is right for your job.

5. Validate bonding and insurance

In most states, contractors are required to have bonding. In all states, they must be insured, including worker’s compensation insurance. If the subcontractor doesn’t have these protections in place, you could be held liable if there’s a problem. If the subcontractor doesn’t have these, reject them as candidates.

6. Investigate the subcontractor’s financial health

If your job is large, you’ll want to make sure the subcontractor’s financials are healthy enough to commit. You don’t want their employees to walk off the site one day due to lack of payment, or an inability to purchase materials. Request their annual contractor volume, two years of financial statements, and their total sales and net worth (you might have to sign a confidentiality agreement). Look for signs of poor health, like poor cash flow, a mountain of debt, or declining income.

7. Ask about their quality control process

In order to avoid rework and warranty work, you want your subcontractors to certify the quality of their materials and finished work. Every professional business should have a procedure in place to guarantee quality assurance. This procedure is rarely complex, but a successful business will have an answer to your questions.

8. Demand a written contract

It is shocking how many people work without a written agreement. As a contractor who is purchasing labor, you need to protect your investment. Every deal should be bound by a contract that clearly describes your expectations, including the scope of work, timeframe, and payment arrangements. Describe what you will provide and what the subcontractor will provide in terms of materials, warranties, and cleanup.

Hiring a subcontractor is like hiring an employee: You want someone who will represent your business well without adding drama, stress, or financial burden. If you follow the steps listed above, you’ll find the right candidate and build a lasting relationship.

Jonathan Belek
Risk Management Consultant
jbelek@srfm.com

Jon Belek

Should You Buy or Lease That Car?

buy or lease carCars are a big part of our culture. Many of us work in places where cars are required to get around. At some point, you’ll need to purchase a car that costs more money than you have on hand. You’ll ask yourself “Should I buy or lease that car?”

People have been purchasing vehicles forever, but leasing (the practice of only financing the depreciation of a vehicle, not its entire cost) was once only accessible to wealthy people or companies with generous budgets. That isn’t the case anymore. As vehicle costs continue to rise, leasing becomes an attractive solution for every segment of the car industry.

Some people will tell you “It’s smart to buy the car,” or “Save yourself the hassle and lease.” Truthfully, there’s no simple answer. Which option is better depends on your situation, your finances, and your needs? We’ve laid out the advantages and disadvantages of both options.

Advantages to leasing a car

  • Your lease payment is usually less than a finance payment would be.
  • You can have a new car every year if you wanted (with all of the new gadgets).
  • You can drive a better car than you can afford.
  • A lease can be written off business taxes, making it a good company vehicle.
  • Perfect choice if you’ll only be in the area for a year or two.
  • The leasing dealership issues a warranty that covers much of the repairs.
  • You aren’t making a purchase, so sales tax is less.
  • There is no trade-in vehicle to deal with.
  • If the car is worth less than the lease predicted at the end, it’s not your problem.

Disadvantages to leasing a car

  • At the end of the lease, you don’t own the car. You have to return it (although there is an option to buy, but it’s often not in your favor financially.)
  • Terminating a lease early can lead to expensive fees.
  • Putting too much wear or mileage on the car can lead to expensive fees.
  • If you plan to keep the car for years, leasing is more expensive than buying.
  • Lease contracts are made to be confusing so you pay more in fees.
  • Your mileage is often limited to 12,000/year, which is easy to overcome.
  • You can buy extra mileage, but it’s expensive.
  • Typically the lease requires you to have excellent credit.
  • Failing to perform basic maintenance can result in extra fees.

Advantages of purchasing a car

  • You can modify or augment the car in any way you wish at any time.
  • It’s cheaper over the long run if you plan to drive the car for a long time.
  • There’s no limit to how many miles or much wear you can put on the car (which is important for commuters who travel long distances).
  • You can tailor the loan term (length) and payment amount to your budget.
  • You can sell the car whenever you want for as much as you like.
  • Once the car is paid off, a big piece of your budget opens up.

Disadvantages of purchasing a car

  • Many dealers require you to pay a down payment before you can finance a vehicle. This is smart anyway, otherwise, you’ll be upside down on the loan.
  • Long loans can mean paying a lot of interest by the end of the loan.
  • The monthly payment is higher than a lease payment.
  • You are responsible for repair costs (unless there’s a warranty, but that doesn’t last forever).
  • At some point, you’ll have to sell it, trade it in, or junk it.
  • A car is a depreciating asset, so you’ll never sell it for what you paid.
  • Fluctuations in the car’s market value can affect your selling price (which you can’t predict).
  • If you need to sell your car but owe more than it’s worth, you would have to pay just to get rid of the loan.

Summary

When you’re trying to decide whether to buy or lease a car, look at it like this: A leased car is convenient, easy, and you get to drive something new all the time. A purchased car is far cheaper, and you have the freedom to use it however you please.

Before you make any decision, it’s important to understand the real financial implications. Use this calculator to understand your potential car buying options.

Jennifer Dwyer
Personal Lines Representative
jdwyer@srfm.com

Jenn Dwyer

Is Your Healthcare Plan Covering People It Shouldn’t?

healthcare eligibilityIf you provide an employer healthcare plan, it’s vital to ensure only the correct people are covered. Comprehensive healthcare insurance is one of the most important benefits you provide to employees, so keeping premiums down matters to everyone.

One of the main causes of rising premiums and healthcare costs is when ineligible people continue to be covered on a healthcare plan. For employer-provided health insurance, ineligible people are typically:

  • Former employees who have now left your business.
  • Employees whose status has changed, meaning they are no longer eligible under the plan, or should be on a different plan.
  • Dependents of an employee, where the status of the dependent has changed.

Examples of ineligible people for a healthcare plan

The following situations could all cause people to become ineligible.

  • A dependent child who ages beyond the dependent eligibility requirements in the plan.
  • A former spouse who separated from your employee.
  • An employee who leaves your business.
  • An employee whose status has changed, for example through changing the number of hours worked or moving to a different position, and whose new status requires a different healthcare plan.

Creating a healthcare eligibility audit

You need a process to understand and remove people from your employer-provided healthcare plan. Here’s how to put an “Employee and dependent healthcare eligibility audit” together.

Understand the eligibility requirements of your current employer-provided healthcare plans

Go through any existing employer-provided plans and note down:

  • All employees currently covered by the plan.
  • All dependents currently covered by the plan.
  • Eligibility requirements for employees.
  • Eligibility requirements for employee dependents.
  • Benefits and coverage provided.

You may hold this information internally, or you can get the data from your broker or healthcare insurance provider.

Analyze your existing employee data

Match your existing employee data against the healthcare plan eligibility requirements. Check:

  • Any employee listed as being on the plan is still employed by you.
  • Any dependent listed on the plan is still a dependent on the employee.
  • The type of healthcare plan is appropriate for the status of the employee.
  • All eligibility requirements are being met by any active plan participants.

Find gaps in the data

It’s likely that you will find gaps in the information. You may not have the latest details of dependents or employees. Complete a gap analysis to understand the data you need to ensure only appropriate people are covered by the plan.

Carry out a healthcare eligibility audit to close any gaps

Once you know what data you need, you will need to audit the information with your employees. Approach each employee with the details of their health insurance for them and their dependents and ask if all the information is factual and correct. If it is, get them to sign off on the information.

If the data is incorrect, get it updated and see how it affects healthcare eligibility. Communicate this back to the employee.

Careful communication is key

You will need to communicate carefully throughout this process. Employees may see the eligibility audit as a tool for taking away healthcare coverage. It’s important to manage the message carefully — The audit ensures only appropriate, eligible people are covered. That means less cost-leakage and medical expenses on plans, which keeps premiums down and ensures the right people have the right coverage.

You may want to complete the healthcare eligibility audit every year. This will ensure your records are up to date and reduce the premiums you and your employees need to spend.

Jill Goulet
Risk Management Consultant
jgoulet@srfm.com

healthcare eligibility

Trucking Risk Insights: Top 10 Vehicle Violations – 2016

Top 10 Vehicle Violations—2016

A roadside inspection is an examination of individual commercial motor vehicles and drivers by a Motor Carrier Safety Assistance Program (MCSAP) inspector to determine compliance with the Federal Motor Carrier Safety Regulations (FMCSRs) and/or Hazardous Materials Regulations (HMRs). Serious violations result in the issuance of driver or vehicle out of service (OOS) orders. These violations must be corrected before the affected driver or vehicle can return to service.

Trucking ViolationsJonathan Belek
Risk Management Consultant
jbelek@srfm.com

Jon Belek

Trucking P&C Pro-File Newsletter – February 2017

New Study Links Multiple Health Conditions to Preventable Crashes

It can be extremely difficult for commercial truck drivers to stay healthy on the job. Drivers often work long hours without rest, stay seated all day and don’t have access to exercise or nutritious meals. However, a new study conducted by the University of Utah School of Medicine found that drivers with three or more health conditions are much more likely to get into preventable crashes.

The study, which examined the medical records of nearly 50,000 commercial drivers, tracked a number of medical conditions that could have a negative impact on a driver’s performance—such as diabetes, high blood pressure, and anxiety.

Although the study found that drivers who have only one of the conditions

could often control it while on the road, the number of crashes increased significantly when drivers had three or more conditions. The average rate for crashes that result in an injury for all truck drivers is approximately 29 for every 100 million miles traveled, but the rate is 93 for every 100 million miles traveled for drivers who have at least three of the flagged conditions.

Transportation Industry Seeks to Limit New Rule-making

Representatives from the transportation industry have petitioned the Trump administration to slow the rule-making procedures of various federal agencies by adding more steps to the process and including business representatives in future rule-making discussions.

Although agencies such as the Department of Transportation (DOT) and the Federal Motor Carrier Safety Administration (FMCSA) currently go through public steps in their rule-making processes, some business owners believe that the Obama administration bypassed these processes through executive orders and safety advisories. They say this could force businesses to adopt costly new procedures with little evidence of their effectiveness.

New Interstate Passenger Resource

The FMCSA recently released an online

resource to help businesses that transport passengers across state lines. The resource includes a list of requirements that have changed over the years as a result of litigation, legislation, and rule-making. Additionally, passenger carriers can determine their registration requirements, minimum levels of financial responsibility and any applicable safety and commercial regulations.

For more information on keeping your business compliant with FMCSA regulations, contact us at 203-265-0996 today.

Jonathan Belek
Risk Management Consultant
jbelek@srfm.com

Jon Belek

Construction P&C Pro-File Newsletter – February 2017

New OSHA Beryllium Standards

On Jan. 9, 2017, the Occupational Safety and Health Administration (OSHA) issued a final rule to amend its beryllium standards for the construction, shipyard and general industries.

The final rule will reduce the eight-hour, permissible beryllium exposure limit from 2.0 micrograms per cubic meter to 0.2 micrograms per cubic meter. It also establishes a short-term exposure limit of 2.0 micrograms per cubic meter over a 15-minute sampling period.

The rule will require additional protections that include personal protective equipment, medical exams, medical surveillance, and training.

The final rule becomes effective on March 21, 2017. Affected employers must provide newly required showers and changing rooms within two years after the effective date and implement new engineering controls within three years after the effective date.

OSHA estimates that the new rule will prevent 46 new cases of beryllium-related disease and save the lives of 94 workers annually.

Employers should become familiar with the new standards and evaluate their current workplace practices to ensure compliance with the final rule.

DOL Sues Contractor for Firing Safety Manager

According to a lawsuit filed on Dec. 28, 2016, a Tampa roofing contractor discriminated against its safety manager after he cooperated with an OSHA investigation. The Department of Labor (DOL) lawsuit was a result of an investigation by OSHA’s Whistleblower Protection Program.

Under the program, employers are prohibited from retaliating against employees who raise protected concerns or provide protected information to the employer or government. The lawsuit seeks back wages, interest, and injunctive relief as well as compensatory and punitive damages.

Construction Workers at Highest Risk for WMSDs

According to a recent Occupational and Environmental Medicine report, U.S. construction workers are at a higher risk of work-related musculoskeletal disorders (WMSDs) than all other industries combined. The back is the primary body part affected, with overexertion named as the major cause of WMSDs.

Employers should adopt ergonomic solutions at construction sites, such as training employees on safe lifting practices, in order to reduce the number of WMSDs and prevent lost wages.

Jonathan Belek
Risk Management Consultant
jbelek@srfm.com

Jon Belek

How to choose the perfect appraiser for your property, art, antiques, jewelry, and other valuables

appraiserIf you have highly valuable, treasured property or possessions, you may need to get them appraised for insurance purposes. Many insurance carriers will insist on accurate valuation of property, art, antiques, jewelry, and other items so they can ensure the correct level of coverage and premium payment.

When you’re seeking out a good appraiser, here are some areas to consider:

Talk to your friends and colleagues

If you know other people who need to insure high-value items, talk to them about their experiences. Get recommendations on good appraisers and create a shortlist.

Look at professional qualifications

There are a variety of professional accreditations and qualifications depending on the fields an appraiser trains in. These include:

  • International Society of Appraiser’s credentials for fine art, antiques, and personal property.
  • A diploma in gemology for jewelry appraisal.
  • Uniform Standards of Professional Appraisal Practice exam for members of the American Society of Appraisers.
  • Principles of Valuation courses for members of the American Society of Appraisers.
  • Property appraisers should have one of the following designations from the Appraisal Institute — MAI Designation, SRPA Designation, SRA Designation, AI-GRS Designation, AI-RRS Designation.

There are various other exams and certifications available. Always check an appraiser’s qualifications to ensure they’re qualified to provide expert advice.

Check if they’re members of professional appraiser organizations

There are several industry bodies for appraisers. They include:

Many of these websites have membership directories for their appraisers.

Professional appraisers are required to uphold a strong code of ethics, including:

  • Providing truly independent valuation services, with no external influences.
  • Have no outside interest in the valued item, other than as providing a professional service.
  • Only carry out appraisal work in their area of expertise.
  • Consider all relevant factors when arriving at a valuation.
  • Treat and document property with the right level of care and respect.
  • Ensure personal remuneration and pay is independent of the value of property being appraised.

Interview your shortlist

When you have a shortlist of appraisers, call each one and ask questions about their area of expertise, qualifications, professional standards, and membership of industry bodies. Get a feel for what each appraiser is like and use that to decide which one would be right for your needs.

Remember that valuations change with time, many carriers will require updated valuations on a regular basis.

As always, if you have any questions about your scheduled property or how to get your property appraised, we are a phone call away!

Mary McGrath
Personal Lines Manager
mmcgrath@srfm.com

Appraiser