Errors & Omissions (E&O) Insurance for Home Inspectors
Did you know that more than half of home inspectors will face at least one insurance claim during their careers? Since the vast majority of those claims are for alleged mistakes or oversights, errors and omissions (E&O) insurance for home inspectors is crucial.
You may wonder: Do I need an E&O policy? What does an E&O policy cover? What is not covered by E&O insurance? And what does home inspector E&O cost? Get answers to these frequently asked questions and more below.
Do I need an E&O policy?
Home inspector insurance requirements vary by state. As of October 2022, 62 percent of states require home inspector professional liability insurance. To learn how much home inspector E&O your area mandates, check out our FAQ page and select your state in the map or alphabetical list.
But your work doesn’t stop at knowing your state’s home inspector insurance requirements. Even if your state doesn’t require it, we and other experts in the field strongly encourage you to carry errors and omissions insurance for home inspectors to avoid large payouts for claims and to receive claims handling and defense. Without insurance, you’re responsible to find and fund representation in a lawsuit. If you reach a settlement or judgment, you’re responsible to pay that cost on your own. When home inspectors pay to resolve claims out of their own pockets, the emotional and financial burden can be so significant that they go out of business.
Alternatively, by carrying home inspector professional liability insurance, you can safeguard your business. Whether you make a mistake, leave something out of your report, or receive a frivolous allegation, home inspector E&O insurance can give you peace of mind and protection.
What does a home inspector E&O policy cover?
Errors and omissions (E&O) insurance for home inspectors, also known as professional liability for home inspectors, protects you when your clients accuse you of missing something during their inspection—or, at the very least, leaving it out of your report. In other words, you’re protected when clients accuse you of not doing your job right.
Typically, E&O claims arise from accusations of wrongful acts, including:
Some examples of common E&O claims include:
- A home inspector allegedly failed to report significant water intrusion
- A claimant accused a home inspector of missing leaks in their roof
- Purportedly, a home inspector failed to detect a compromised foundation
- A home inspector allegedly didn’t report mold
- A claimant accused a home inspector of misidentifying their plumbing
Note that any claims for optional services, like mold and pest, hit your home inspector E&O insurance. And just because you don’t provide an optional service, like radon inspections, doesn’t mean that a client cannot sue you for a radon-related issue. That’s why it’s important to carry endorsements for any service for which you’d like insurance coverage and to get a thorough pre-inspection agreement signed prior to every inspection.
For more information on the most common E&O claims, read our article, “Top 5 Claims Against Home Inspectors.”
What is not covered by E&O insurance for home inspectors?
While claims questioning the quality of your home inspection or service are the most prevalent, your business can receive other types of accusations not covered by errors and omissions insurance, too. Here’s a quick chart of other types of claims your home inspection company may face and what type of insurance you’d need to protect you from them.
|Type of Claim||Insurance Necessary|
|Bodily Injury||General Liability|
|Property Damage||General Liability|
|Inspector Injury or Death||Workers' Compensation|
|Equipment Damage||Inland Marine|
|Accusations of Theft||Crime Coverage|
Here at InspectorPro, our professional liability insurance for home inspectors includes general liability coverage, too. By carrying both E&O and GL coverage in one policy, you are more prepared to face the most common claims against home inspectors.
To learn more, read our article “E&O vs General Liability: What they are and why you need both.”
What does home inspector E&O cost?
How much is errors and omissions insurance for home inspectors? What errors and omissions insurance costs for home inspectors depends on a variety of factors, including:
- Claims History
- State Insurance Requirements
Learn more about each of these cost factors on our pricing FAQ page.
Since underwriters calculate rates based on your unique business needs, the only way to know how much your home inspector E&O insurance will cost is to get a quote.
To get a free, no-obligation quote, visit our application page.
The best E&O for home inspectors
Here at InspectorPro, we strive to offer solutions that meet home inspectors' specific needs. With a reputation built on superior claims handling and quality customer service, we give clients peace of mind. Our risk management tools work to change the litigious culture plaguing home inspection businesses by helping inspectors educate their clients and avoid claims.
Our errors and omissions (E&O) insurance for home inspectors is built to serve your unique business needs, making it the best home inspector insurance for you. Insuring with anyone else simply isn't worth the risk.