Search This Blog

Share, guys!

If you want to link exchange with this blog or posts, you can leave or write message on ShoutMix Chat. :)

Saturday, September 18, 2010

Frequently Asked Questions About Errors and Omissions Insurance for Home Inspectors

Errors and Omissions Insurance Liability for home inspectors is necessary for this type of businesses because it protects the company from claims if a client holds a member of the company responsible for errors, or the failure of the company's work to perform as indicated in the contract.

It is a necessary investment for any home inspector because in most cases, professional liability (Errors and Omissions Insurance) coverage is not provided in a commercial general liability insurance policy. Therefore any issues concerning professional liability such as errors or contract performance disputes are not covered in the general liability policy.
Errors and Omissions Insurance may pay for legal defense costs, court costs, and any resulting judgments against the inspector.This means peace of mind for home inspection businesses because everyone makes mistakes at some point.The insurance may also cover employees and 1099 subcontractors working for the company, perhaps even in a different location.
The bottom line is that home inspectors who purchase Errors and Omissions Insurance can protect their reputations and businesses from the outcomes of embarrassing law suits which otherwise might result in extreme financial hardship if errors are brought to light in a courtroom.
Many Errors and Omissions Insurance policies are "Claims-Made" to protect the policy holder against any incidents that occurred and were reported during the specific period of time mentioned in the policy, or during an "extended reporting period".Another type of Errors and Omissions Insurance policy is called an "Occurrence Policy" and the incident has to have occurred during the policy period regardless of when the claim is reported.
Many home inspectors also take out General Liability insurance just in case an accident causes bodily injury or property damage during an inspection. For instance, something gets broken in the home during the inspection.
Another thing for the inspector to note is coverage can be bound the same day on some policies as long as all of the underwriting information is received by the insurance company and approved. Today most clients receive their insurance policy via the email or internet within 5 days from it being issued. Some insurance companies have been "thinking green" on printing and communication appreciate all of their clients who are receiving their documents via e-communication.
Some policies may not cover Radon and WDI/WDO inspections.Home inspectors should check with the insurance company to determine whether these types of inspections can be covered.In some states inspections there isn't a licensing requirement so the inspector may have to submit proof of training.
There are many fine points to keep in mind when shopping around for Errors and Omissions Insurance. The key point here is that no home inspector should be without this type of insurance policy.
Sue McCrossin is a freelance writer working with Elite Inspect Insure to enlighten home inspectors about the need for Errors and Omissions Insurance coverage. For more information on e and o insurance visit

1 comment:

  1. thanks,
    i want learn more about Errors and Omissions Insurance,
    confuse with that :-(