Defendant?s business: is it one required to have insurance? Termite inspectors
or more specifically, all pest control businesses, are required by law to have
at least $200,000 of liability insurance. Home inspectors licensed by the Texas
Real Estate Commission have to maintain insurance. Not surprisingly, real
estate agents and brokers have no insurance requirements. (Real Estate agents
and home inspectors have a fund that can be accessed in the event the agent,
broker or inspector fails to pay a judgment.)
Any moderately sized
business will usually have some sort of CGL policy ? a commercial general
liability policy which will cover them for their negligence and usually
excludes professional services and products they produce. A well insured company
has coverage for those items as well.
If you don?t know if your Defendant has any
insurance and you have received a response from an attorney, by all means, ask.
It is to everyone?s advantage to find the coverage and frequently, you may have
to locate and assist in finding the coverage.
You should always assume there may be SOME
insurance coverage and write your demand letter and your pleadings with
allegations of negligence. That way, if there is insurance, the carrier has to
consider the claims and is more likely to at least defend under a reservation
of rights. Just because a Defendant has an insurance policy does not mean that
the policy will cover a claim. Which leads to Question No. 2.