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 insurance for home inspectors. The following includes how home inspector E&O insurance works and what items should be covered in the policy.
As a professional home inspector, E&O insurance acts as a shield. 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. Insurance for home inspectors also includes costs of attorneys, courtrooms, and settlement if found guilty.
Home inspector E&O 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.