What does home inspector errors and omissions insurance cover? Read article, before buying home inspector errors and omissions insurance.
What is Home Inspector Errors and Omissions Insurance?
Following are some of the characteristics of home inspector errors and omissions insurance you should know.
Improved Rates of home inspector errors and omissions insurance
Almost every customer looks for insurance with the intention of getting the best deal possible. You may accomplish both by purchasing your liability insurance from an expert in the field like InterNACHI’s Elite Risk Insurance program. You may get affordable premiums and excellent coverage with a program designed especially for the home inspection industry. Simply let us know if you come across a cheaper price so that we may examine it and make sure it meets your requirements with reference to coverage, deductible, carrier status, etc.
Low premiums serve no purpose if a claim made against you is not covered by the insurance. That’s something you don’t want to learn the hard way because it will be quite expensive for you to have to fight a claim on your own. The components of liability insurance are various. In order to cover third-party physical injury and property damage claims, home inspectors often need both Professional Liability—often referred to as Errors & Omissions or E&O insurance—and General Liability. Insurance contracts have major exclusions and limitations that, if the proper safeguards are not in place, could result in significant coverage gaps. The programme from InterNACHI provides a number of endorsements to protect you for a wide range of ancillary services you might be providing for your clients. Representatives from Elite are aware of the value of continuing coverage to defend you against lawsuits arising from previous inspections you conducted. Most importantly, they have a group of experts who will review your insurance requirements and offer you the best alternatives.
Every insurance policy has a deductible that, in some claim circumstances, you, the insured, are required to pay. The deductible amounts differ based on the type of insured company. Would you be interested in having your deductible decreased annually as a reward for no claims and timely premium payments? For InterNACHI® members who acquire their coverage through InterNACHI’s new Elite Risk Insurance program, that option is available.
fighting to defend the sued inspector
It’s more a matter of “when” than “if.” If you work as an inspector for a long enough time, you probably will face legal action. The vast majority of claims made against home inspectors are unfounded and generally defendable, but it’s crucial to notify your agent as soon as possible to avoid jeopardizing your coverage in the future. Because they don’t want a mark against their name or for their charges to go up, many inspectors are hesitant to report an occurrence. More harm than good will result from that worry. You won’t necessarily see a raise in your rates just because you report a claim. Our insurance carrier analysts will work closely with you to gather information in the case of a claim or incident so that you may prepare a suitable response to an irate client in an effort to defuse the issue. When necessary, the insurer also employs a third-party home inspection litigation specialist to further reduce your liability risk. The deductible might not even apply to a claim if the insurance company doesn’t have to pay anything, like to hire experts or question witnesses. The carrier will, if possible, select local, vetted, and knowledgeable counsel to defend the matter if you are named in a lawsuit and require legal representation. Every claim case differs from the next in terms of culpability, but our objective is to zealously defend you if you upheld the duty of care owed to your client.
Management of Risk
You must be aware of the potential exposure you face as a business owner if you are a home inspector, and you must seek out the best and most efficient ways to manage those risks. A great approach to reduce potentially expensive liabilities and exposure that could force you out of company or worse is through insurance. There are additional strategies to take into account, like risk transfer, but the initial step is to recognise the many exposures you have by working with a qualified insurance agent or risk manager to develop an all-encompassing plan to address them.
Here are some additional queries to think about in order to better manage your risk:
- Is your inspection agreement in accordance with all current state licencing and consumer laws?
- Do you have coverage under your insurance policy for all the services you provide?
- Do you employ independent contractors to carry out your auxiliary services, such as mould testing, radon testing, and inspections for wood-destroying insects? And if so, do these subcontractors have sufficient insurance? Do they include your business on their insurance as an additional named insured party?
- Do you employ independent contractors to do inspections for your business? Are they covered by your coverage, if so?