Home Inspector E&O & General Liability Explained
Errors and Omissions (E&O)/Professional Liability Insurance
This insurance protects you and your company from alleged errors and omissions (E&O) in/or arising out of your inspection report.
Examples: after a home inspection, the homeowner discovered the interior foundation had water leaks and damage. Since the home inspector had not reported the issue, the homeowner sues. A home inspector notes that the roof was nearing its life expectancy, but did not note missing shingles or the improperly installed dormer. After the purchase, major leaks occurred, and the homeowner sues the inspector for the cost of a new roof and floor.
OREP’s E&O (professional liability) policy includes an endorsement for General Liability coverage. General Liability can provide protection when someone or something is broken or injured, such as you knocking over and breaking a vase during an inspection or dropping a heavy object from the roof and injuring a home owner. Coverage is also provided in the event an injury occurs due to an error or omission in your report, for instance: a faulty deck collapses months after the inspection and injures the home owner. You failed to note the deck needed repair.
Since the line between E&O and General Liability can seem unclear, both coverages on one policy will provide you with quick, efficient claims handling, along with competitive pricing.