Home Inspection Insurance provides coverage for professional home inspectors. A typical comprehensive insurance plan for Home Inspectors should include both General Liability and Professional Liability / E&O insurance. Some states require inspectors to carry General Liability, Professional Liability / E&O, or both forms of coverage. It is important to check with your specific state requirements. Home Inspectors should carry insurance that includes both types of insurance to protect against the many hazards and risks associated with Home Inspection.
It is important to understand the difference between General Liability and Professional Liability / E&O insurance coverages. A General Liability policy will offer a Home Inspector protection against situations occurring at the time of inspection or due to the inspection process which may lead to personal bodily injury or property damage. For example, if an Inspector were to step on and break a water pipe during the course of the inspection that results in water damage to the property being inspected, the home owner could file a claim against the Inspector for damages. The General Liability policy would provide legal defense against such claims and may pay for the resulting damages.
Professional Liability / E&O insurance, a form of Professional Liability, defends Home Inspectors against claims of negligence associated with the property inspection. For example, if an Inspector was negligent in the performance of the service of a Home Inspection, overlooking a condition that should have been identified by an industry professional that resulted in financial loss to the home owner due to the negligence, the Professional Liability / E&O coverage would provide legal defense and potential property damage claims.