The Importance Of Home Inspector E And O Insurance And Home Inspector Liability

By Author: supriyo banerjee
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As a home inspector, part of your job is to help your clients protect their home. But even the most highly-trained inspectors can miss a problem, defect, or make an error or omission. Even if you've followed all the right steps, mistakes can happen. That's when the importance of having Home Inspector E and O insurance comes to light. Not only will E and O insurance protect your inspection business from E and O claims and damages, but it also helps protect your client’s homes.

Home Inspector E and O insurance, or Errors and Omissions insurance, protects home inspectors against lawsuits or claims from claimants based on omissions or mistakes made during an inspection which resulted in financial damages for the client. Clients can even file claims based off of advice you may have offered during an inspection. E and O coverage also encompasses things like radon liability, premises liability, spa & pool liability, and termite liability. This coverage will protect you, your business, and your employees from claims or lawsuits made against you for errors or omissions made during a home inspection. In ...
... the home inspection business, clients have the opportunity to place responsibility on you and your company for any error or failure that may have been caused during and after your home inspection.

There are some important things to remember when it comes to securing E and O insurance for your home inspection business. In most cases, investors or venture capitalists request E and O coverage, as well as requirements for federal and state licenses. Particular E and O policies apply not only to W2 employees, but also to sub-contractors receiving a 1099 from your company. Usually, E and O coverage is excluded from General Liability policies. If E and O coverage is in a General Liability policy, restrictions may apply that aren't in the best interest of your company.

Home inspector liability claims that have merit can severely damage your business, your income, and your inspection company’s reputation. While E and O insurance won't prevent you or your employees from making errors or missing visible existing problems in a home while giving an inspection, it will protect you if those errors occur. There are many factors that go into determining whether you, as a home inspector, are in fact liable for errors or omissions made during an inspection. For instance, if the claim was for something that is completely outside the professional province of a home inspector, there is no obligation to discover it. A claim made for something that is outside the applicable Standard of Practice would generally be found to be without merit. If a defect was concealed from the inspector's view by furniture, carpeting, or finished walls and ceilings, you more than likely would not be liable. Also, if a claim is for something that the inspector specifically disclaimed responsibility for during their inspection, they should not be liable for that.

You have invested money into your home inspection company, make a smart business decision and be sure to have the best home inspector E and O insurance coverage. You'll be better protected and you are not alone Elite InspectInsure is behind you.

Pamela Brunges is the Senior Vice President of Marketing and Operations for Elite MGA and the Inspect Insure Program, a Home Inspector E and O Insurance Company offering cost effective, customized Home Inspector Liability coverage.