Errors and Omissions Insurance for the Professional Home Inspector

The following items address Errors and Omissions Insurance, answering many of the questions Home Inspectors may have about how Errors and Omissions Insurance works and guidelines on what it should include.

1. Errors and Omissions Insurance can also cover attorney fees as well as the amount of a settlement if you are found at fault.

Errors and Omissions Insurance can and must be tailored to your specific company needs.  Coverage can be written to include you, your W2 employees and 1099 Contractors.  This type of coverage is generally excluded by your Commercial General Liability policy, and if there is additional coverage for this exposure it may have limitations that you may not be aware of.   Be sure to have the following information written into your Errors and Omissions Insurance policy:

• Dollar amount for each liability
• Deductible amount for each liability
• Deductible amount for defense costs
• A section explaining what the policy is for: "This policy applies to errors, omissions or negligent acts in the course of providing or failing to provide professional services."
• A section listing the services you provide in as much detail as possible
• The retroactive date for claims ( unless written by an occurrence form)

Errors and Omissions Insurance should be your safety net.  Consider the consequences; we all make mistakes even when we’re at our best.  Professional liability Insurance may not have the coverage you need.  The best time to buy Errors and Omissions Insurance is before you need it.