In today’s uncertain economy, business owners need to be more aware and informed of their professional vulnerabilities. Now is the time for Home Inspectors to protect themselves against unwarranted claims of personal negligence. Now is the time to get Errors and Omissions Insurance. Errors and Omissions Insurance (E&O Insurance) is a policy that provides you coverage from a potential claim arising from your professional advice or service. You may already have traditional Commercial Liability Insurance but you still vulnerable to claims of personal negligence. Professional liability related to an error or omission is not covered by General Liability Insurance
Errors and Omissions insurance is more important in this economy than ever before. While the housing market is crumbling and foreclosures at their highest in recent years, Home Inspectors are still doing their jobs. Their exposure to homes in foreclosure may lead to more hidden problems due to neglect from homeowners due to loss of income and tight budgets. Homes in disrepair are more common in this market and the potential to make a mistake and miss something is not out of the question. Error and Omissions Insurance can protect you from potential claims and the extra costs incurred.
Errors and Omissions Insurance could include Attorney fees as well as judgments, settlements and defense costs that can result from errors (or Omissions) that you have made or that a client has perceived you have made. Errors and Omissions Insurance can vary to its specifics, so make sure it should include the follow:
- Dollar amount for each liability
- Deductible amount for each liability
- Deductible amount for defense costs
- A section explaining what the policy is for: “This Errors and Omissions Insurance policy applies to errors, omissions or negligent acts in the course of providing or failing to provide professional services.”
- A section listing the services you provide in as much detail as possible
- The retroactive date for claims ( unless written by an occurrence form)
Home Inspectors are working hard in this economy to endure. Errors and Omissions Insurance is the safety net to protect their livelihood. No one should be caught without coverage against personal negligence when in these trying times some are turning to desperate measure to survive. Be prepared for the unexpected claims and accusations. Errors and Omissions Insurance is worth the peace of mind.