There are multiple hazards and risks that are faced by home and building inspectors in the course of an inspection. Whether they be general liability claims or errors and omission claims, a home inspector insurance policy should address both types of risks.
While some states do not have a requirement for specific insurance that doesn't really mean you can operate a business without insurance at all. Having insurance protects you from incidents in the normal course of business such as General Liability, Errors and Ommissions, and Commercial Auto Insurance.
How General Liability Protects Your Business
Consider the following scenario. John Smith Home Inspections is hired to provide a routine home inspection for a client. During the inspection Smith retrieves his ladder from his truck and proceeds to place it so he can climb up and inspect the roof. While Smith is walking with the ladder he stumbles and inadvertently smashes the windshield of the neighbor's car parked in an adjacent driveway. That incident would usually be covered by a GL policy, because it doesn't relate to the performance of a home inspection.
How Errors and Ommissions Insurance Protects Your Business
Following that mishap above, Smith climbs the roof and continues his inspection. Smith completes the inspection and provides his report to his clients. Unfortunately, Smith fails to notice an area of depression on the front of the roof indicative of a structural failure of the roof framing. His clients later file a lawsuit because they have to repair the roof themselves and did not have an opportunity to address the defect with the sellers prior to settlement. That failure by Smith is directly related to his performance of his professional services and presumably constitutes an error or omission (negligence) in performing the inspection. This is a very typical example of how E&O insurance is used in today's home inspection industry.
Policy Limit and Deductible Options
Liability Limits are available from $100,000/$100,000 up to $2,000,000/$4,000,000 to satisfy any State's or Franchisor's insurance requirements
Numerous Deductible Options beginning at $1,500
Specific Coverage Options can include
- On-premises Bodily Injury/Property Damage Liability
- Radon Inspections
- Termite/Wood Destroying Insect Inspections
- Pool and Spa Inspections
- Sewer and Septic Inspections
- Mold Inspections
- Water Purification Testing
- Lead Pain Inspections
- Real Estate Agent Referral Protection
- Franchisee Protection