Errors and Omissions Insurance for Home Inspectors

Errors and Omissions Insurance for home inspectors (E&O Insurance) is needed in order to protect professional home inspectors from possible legal claims. The complex process of real estate transactions combined with the growing popularity of litigations has made home inspector E&O insurance a commodity. Read on to discover frequently asked questions about errors and omissions insurance for home inspectors. The following includes how home inspector errors and omissions insurance works and what items should be covered in the policy.

As a professional home inspector, E&O insurance acts as a shield. Errors And Omissions Insurance for home inspectors offers coverage from possible claims filed against professional guidance or services that are an inevitable part of the job. If a claim is in fact filed for flawed services or services resulting in errors or omissions, home inspector E&O insurance can assist you. Errors And Omissions Insurance for home inspectors also includes costs of attorneys, courtrooms, and settlement if found guilty.

Home inspector Errors and Omissions insurance will be customized to you particular business needs. Insurance for home inspectors cover you as well at subcontractors and W2 employees. Note that home inspector E&O insurance is not included in a Commercial General Liability insurance policy, so plan accordingly. If it is included, the coverage is most likely limited. When creating your home inspector E&O insurance policy, make sure the following information is addressed:

  • Amount in dollars for every liability
  • Amount deductible for every liability
  • Amount deductible for cost of defense
  • A section disclosing the purpose of policy, i.e. “This policy covers errors, omissions, or negligent acts during the course of professional services or failure to provide services.”
  • A detailed list of your services provided
  • The retroactive date of claims (except if written by occurrence form)

Insurance for home inspectors acts as a fall back. Everyone makes mistakes by nature – consider the limitations of liability insurance and purchase home inspector E&O insurance before you need it.