Do Home Inspectors Need Errors and Omissions Insurance?

Like any other profession, home inspection can have risks. Some of those risks can be associated with bodily injury or property damage that can occur while crawling in attics or under houses, but there can be other risks. If you don’t have errors and omissions insurance for home inspectors, you may be at serious financial risk.

Employer Policies Can Have Limitations

If you work for a company, you may think that you can be covered under that company’s policy. Most company policies can cover employees but may have limitations. If a claim exceeds those limitations, you can be held personally liable for the exclusions.

Benefits of Errors and Omissions Insurance

When claims arise that allege that an inspector has made a mistake, breached a contract or failed to disclose something on a home inspection, the inspector can be held personally liable for damages if he doesn’t have errors and omissions insurance for home inspectors. Depending on the extent of the damages and the value of the property in question, liability for one incident could far exceed several years’ worth of earnings for a home inspector.

Even the most experienced and detail-oriented home inspectors can be accused of negligence, breach of contract, or failure to disclose defects and may need legal representation to prove their innocence. This insurance can cover court costs, attorneys’ fees and any judgments against the inspector.