General Liability Insurance for Home Inspectors
Big accusations can lead to big problems for your home inspection business. A general liability (GL) claim can average more than $75,000 per case to defend and settle when a lawsuit is involved. Such expensive claims can bankrupt a small business, which is why it's so important to have insurance coverage.
But is general liability insurance for home inspectors necessary? What does a GL policy cover? What's not covered by liability insurance? And what does home inspector general liability insurance cost? Get answers to these frequently asked questions and more below.
Why is general liability insurance for home inspectors necessary?
Home inspector insurance requirements vary by state. As of October 2022, 76 percent of states require home inspector general 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 general liability 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 general 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 liability insurance can give you peace of mind and protection.
What does a home inspector general liability policy cover?
General liability (GL) insurance protects you when your clients make broad allegations against you. Unlike errors and omissions (E&O) claims, GL claims don’t typically question the quality of your home inspection or service. Rather, GL claims involve accusations of:
(Learn more about the difference between the two coverages here.)
Examples of home inspection general liability claims include:
- Water damage from leaving the tap running
- Damage caused by inspection-related power outages
- Garage doors breaking during testing
- Plumbing freezing after inspection
- A client falling off your ladder
For more information on the most common general liability insurance claims, read our article, "Top 5 General Liability Claims Against Home Inspectors."
What is not covered by general liability for home inspectors?
While you may be worried about bodily injury and property damage claims, your business can receive other types of accusations not covered by general liability 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|
|Negligence||Errors and Omissions|
|Breach of Contract||Errors and Omissions|
|Bad Advice||Errors and Omissions|
|Inspector Injury or Death||Workers' Compensation|
|Equipment Damage||Inland Marine|
|Accusations of Theft||Crime Coverage|
Here at InspectorPro, our general liability insurance for home inspectors includes professional liability (E&O) 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.”
How much does home inspector liability insurance 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 general liability 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.
General liability insurance for home inspectors, along with E&O coverage, can be the key protection you need to perform inspections without fear or worry. As the leading provider of general liability coverage for home inspectors, we strive to take stress off your shoulders. If you have any questions or would like a quote, contact us and we’d be happy to help.