Does Your Inspector carry Errors and Omissions Insurance?

By
Home Inspector with Safe@Home Inspections, LLC in SE Washington 215
One of the things that changed with the new State Licensing law in Washington State was that your home inspector is no longer required to carry Errors and Omissions Insurance.

At least, when we were required to be Pest Inspectors, a small amount of insurance or bonding was required to protect the home owner. 

The debate over E&O insurance is probably as old as the home inspection industry.  Many inspectors (ASHI estimates up to a third!) don't carry it thinking that it's either too expensive or makes them a target.  At the ASHI conference in Las Vegas last month, I had lunch with an inspector who's been in business for 14 years - and NEVER carried insurance.

Personally, I carry it because I think it makes good business sense.  If you're referring inspectors to clients, I recommend you check - an inspector with E&O insurance will be more than happy to prove it with the paperwork

Comments (5)

Paul A. Perry
Certified Inspections, PC - Residential & Commercial Property Inspections - Crossville, TN
Home Inspector - Crossville & Cookeville, TN

I have been a full time Home Inspector for 17 years with approximately 8,000 total inspections.  I have been carrying E & O and General Liability insurance since July of 2006 which is when the state of TN required it to be a licensed home inspector.  I have never been sued in 17 years.  I have never settled a case out of court.  I have never been served with litigation papers.  I perform a better home inspection today than I did last year because I have more experience and more education.  I do the very best inspection that I can for each client based on what I know at the time.  For me, every home is a challenge.  I want to find anything and everything that might be a problem for my client who is buying the home.  So far, I guess, I've been fairly successful.

To me its not about having insurance, it's about serving your client.   

Feb 16, 2010 09:41 AM
Charles Buell
Charles Buell Inspections Inc. - Seattle, WA
Seattle Home Inspector

Paul, while it is probably a perfectly good waste of money----I carry it too:)  By far the best insurance is "taking care of your client."

Feb 16, 2010 03:42 PM
Paul Duffau
Safe@Home Inspections, LLC in SE Washington - Asotin, WA
Caring for People, Educating about Homes

Paul,

I always tell people MY insurance is doing a great job in the first place.  Theirs is the E&O.  If I had to rely on the E&O, I wouldn't (and shouldn't) stay in business.  But I've also picked up business from Realtors who want that protection for their clients and themselves.  When I first got started 6 years ago, I had one Realtor recount a story of missed items on an inspection that ended up costing her client $30,000 - and the inspector refused to stand behind his work.  I actually agree with your main point - take care of the client, do a conscientious job and all will be well.

And Charlie, I agree - it's probably a waste of money.  So is car insurance, health insurance or homeowners insurance - until it's needed.  Some folks never have car accidents.  Some folks have one every 18 months (I know one!).

Feb 16, 2010 04:27 PM
Dennis Chamberlain
Eastern WA Home Inspections, LLC - Moses Lake, WA
Eastern WA Home Inspections

I have E&O insurance with my new company, I hope it will be a waste of money. Makes me feel a more comfortable having it in place. I know just in case i make a mistake.

Apr 08, 2010 09:05 AM
Jen Wing
JPW Field Inspections - Chico, CA
Field Inspections Since 2007

One area I don't mind wasting my money on.

Apr 13, 2010 04:45 AM

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