Insurance for Home Inspectors

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Why Home Inspectors Need Insurance?

Home inspectors work closely with buyers in the process of purchasing a new home. They count on you to thoroughly inspect a home, identify any potential problems, and deliver the findings. Buyers rely on your recommendations to determine if they should continue with the purchase. If you miss something critical, it can result in a lawsuit months after the home inspection is complete. Home inspector insurance is beneficial because it protects you during these costly scenarios.

Individuals working in building inspection inspect and evaluate a property and report on its condition. They do this for real estate transaction purposes.

Risks Home Inspectors Could Face

There are many risks you face each day that result in a lawsuit or unwanted expenses to your home inspection business including:

  • Property Damage: It’s common for home inspectors to move items during an inspection or use heavy equipment. If your ladder crashes and breaks the glass on a homeowner’s cabinet or you flood the bathroom during a routine water inspection, you’ll be held responsible for the damages.
  • Oversights: It’s hard to document every finding without going overboard. If you fail to notice certain pests or potential mold and the buyer ends up with a significant bill as a result later, they can file a lawsuit for negligence.
  • Auto Accidents: It’s impossible to complete a home inspection anywhere but at the home. If you use your personal vehicle to travel to job sites and cause an accident, your personal auto policy won’t cover the expenses.
  • Damaged Equipment: Specialized tools make it possible to complete home inspections efficiently. If these tools are stolen, broken, or damaged, expenses to replace them can add up in addition to lost revenue while they are unusable.

Types of Coverage Home Inspectors Need

Liability insurance is the beginning point for every home inspector insurance portfolio. You also need commercial property and errors & omissions coverage. If you have employees, you need to consider worker’s compensation and employment practices policies as well.

  • General Liability: Pays to replace or repair property damaged by your services (belonging to a third party). It also covers injury to third parties and advertising injury if you are accused of harming a third-party with your advertising strategy.
  • Errors & Omissions: Protects you against mistakes, oversights, and errors in your home inspection process. It pays defense and settlement expenses, so you don’t have to drain your bank account.
  • Inland Marine: Commercial property insurance protects business property at your place of business or onsite. Inland Marine protects business property in transit in the event it is stolen for your truck or lost during an accident.
  • Business Auto: Pays costs that occur when you are in an accident traveling to a job site. If you use a personal vehicle, you need to add hired and non-owned auto coverage.

How Much Does Home Inspector Insurance Cost?

Insurance for home inspectors varies in cost depending on the company and amount of coverage you wish to purchase. Insurance carriers usually want to know your experience, past claims history, whether you have employees, and what your home inspection checklist to calculate the insurance cost. You can request a quote today for home inspectors insurance by following the link below to our online quote system.

What type of insurance does this industry need?

Policy What is it? Why get it Popularity in your industry Want free quotes?
General Liability 		This policy protects your business in case of third party claims, such as bodily injury or property damage. For example, the common "slip-and-fall" claim would be covered by your General Liability policy. General Liability insurance is often considered to be the core coverage, particularly for businesses that regularly physically interact with customers or sell physical goods. In addition, many businesses have a contract, like a loan or a lease, requiring that they have this coverage.

What is it: This policy protects your business in case of third party claims, such as bodily injury or property damage. For example, the common "slip-and-fall" claim would be covered by your General Liability policy.

Why get it: General Liability insurance is often considered to be the core coverage, particularly for businesses that regularly physically interact with customers or sell physical goods. In addition, many businesses have a contract, like a loan or a lease, requiring that they have this coverage.

Professional Liability 		This policy, common in the professional services industry, helps to protect your business if a client believes they've suffered a loss due to a mistake or error made in a professional capacity. Your business may have contracts with clients or partners that require Professional Liability coverage, provide a "warranty or guarantee," or have clauses that require you to "indemnify or hold harmless" your clients. If so, Professional Liability coverage is often recommended. This coverage is also commonly recommended for any businesses providing advice related to legal or financial matters.

What is it: This policy, common in the professional services industry, helps to protect your business if a client believes they've suffered a loss due to a mistake or error made in a professional capacity.

Why get it: Your business may have contracts with clients or partners that require Professional Liability coverage, provide a "warranty or guarantee," or have clauses that require you to "indemnify or hold harmless" your clients. If so, Professional Liability coverage is often recommended. This coverage is also commonly recommended for any businesses providing advice related to legal or financial matters.

Workers Compensation 		Workers Compensation covers an employee's lost wages and the cost of resulting medical treatment if they suffer a work-related injury or disease. It also covers services needed to help the employee recover and return to work. Workers Compensation coverage is mandatory in most states. The number of employees after which it's required differs by state, but you will generally need coverage once you have employees.

What is it: Workers Compensation covers an employee's lost wages and the cost of resulting medical treatment if they suffer a work-related injury or disease. It also covers services needed to help the employee recover and return to work.

Why get it: Workers Compensation coverage is mandatory in most states. The number of employees after which it's required differs by state, but you will generally need coverage once you have employees.

Errors & Omissions (E&O) 		This policy, common in the professional services industry, helps to protect your business if a client believes they've suffered a loss due to an error or omission on your part. Your business may have contracts with clients or partners that require E&O coverage, provide a "warranty or guarantee," or have clauses that require you to "indemnify or hold harmless" your clients. If so, E&O coverage is often recommended. This coverage is also commonly recommended for any businesses providing advice related to legal or financial matters.

What is it: This policy, common in the professional services industry, helps to protect your business if a client believes they've suffered a loss due to an error or omission on your part.

Why get it: Your business may have contracts with clients or partners that require E&O coverage, provide a "warranty or guarantee," or have clauses that require you to "indemnify or hold harmless" your clients. If so, E&O coverage is often recommended. This coverage is also commonly recommended for any businesses providing advice related to legal or financial matters.

Hired & Non-Owned Auto 		This insurance protects the business in the case of any incidents involving a vehicle that has been hired by the company to be used for business-related purposes. It also provides coverage in the case your business uses other vehicles which are not property of the business, such as having delivery drivers use their own vehicles. If your company hires vehicles or allows employees to use their own vehicles for business purposes, you will want to consider this insurance.

What is it: This insurance protects the business in the case of any incidents involving a vehicle that has been hired by the company to be used for business-related purposes. It also provides coverage in the case your business uses other vehicles which are not property of the business, such as having delivery drivers use their own vehicles.

Why get it: If your company hires vehicles or allows employees to use their own vehicles for business purposes, you will want to consider this insurance.

Commercial Auto 		Commercial Auto insurance provides coverages such as liability, collision, comprehensive, medical payments and uninsured motorist coverage. Any vehicle on the road must be insured, and any incidents that occur while a vehicle is being used for business purposes may not be covered by a personal auto policy. That's why it is so important to make sure you have Commercial Auto insurance for any vehicles owned by the business.

What is it: Commercial Auto insurance provides coverages such as liability, collision, comprehensive, medical payments and uninsured motorist coverage.

Why get it: Any vehicle on the road must be insured, and any incidents that occur while a vehicle is being used for business purposes may not be covered by a personal auto policy. That's why it is so important to make sure you have Commercial Auto insurance for any vehicles owned by the business.

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