Frequently Asked Questions About Errors and Omissions Insurance for Home Inspectors

Errors and Omissions Insurance Liability for homeduring an "extended reporting period".Another type
inspectors is necessary for this type of businessesof Errors and Omissions Insurance policy is called an
because it protects the company from claims if a"Occurrence Policy" and the incident has to have
client holds a member of the company responsibleoccurred during the policy period regardless of when
for errors, or the failure of the company's work tothe claim is reported.
perform as indicated in the contract.Many home inspectors also take out General Liability
It is a necessary investment for any home inspectorinsurance just in case an accident causes bodily injury
because in most cases, professional liability (Errorsor property damage during an inspection. For
and Omissions Insurance) coverage is not provided ininstance, something gets broken in the home during
a commercial general liability insurance policy.the inspection.
Therefore any issues concerning professional liabilityAnother thing for the inspector to note is coverage
such as errors or contract performance disputes arecan be bound the same day on some policies as long
not covered in the general liability policy.as all of the underwriting information is received by
Errors and Omissions Insurance may pay for legalthe insurance company and approved. Today most
defense costs, court costs, and any resultingclients receive their insurance policy via the email or
judgments against the inspector.This means peace ofinternet within 5 days from it being issued. Some
mind for home inspection businesses becauseinsurance companies have been "thinking green" on
everyone makes mistakes at some point.Theprinting and communication appreciate all of their
insurance may also cover employees and 1099clients who are receiving their documents via
subcontractors working for the company, perhapse-communication.
even in a different location.Some policies may not cover Radon and WDI/WDO
The bottom line is that home inspectors whoinspections.Home inspectors should check with the
purchase Errors and Omissions Insurance can protectinsurance company to determine whether these
their reputations and businesses from the outcomestypes of inspections can be covered.In some states
of embarrassing law suits which otherwise mightinspections there isn't a licensing requirement so the
result in extreme financial hardship if errors areinspector may have to submit proof of training.
brought to light in a courtroom.There are many fine points to keep in mind when
Many Errors and Omissions Insurance policies areshopping around for Errors and Omissions Insurance.
"Claims-Made" to protect the policy holder against anyThe key point here is that no home inspector should
incidents that occurred and were reported during thebe without this type of insurance policy.
specific period of time mentioned in the policy, or