E&O & General Liability Explained

Home Inspector E&O & General Liability Explained

You are responsible for examining homes and identifying defects to help home buyers make an informed decision and give them peace of mind. At any point, one overlooked detail could trigger an expensive lawsuit from a client. An issue that goes unnoticed, failure to report damage, or a minor oversight of an inspection could destroy your reputation and have significant financial consequences. It is important for you to focus on taking care of the interest of your clients, not worrying about a potential legal disaster. You need the protection of a comprehensive insurance program designed specifically for Home Inspectors.

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.

General Liability
OREP’s exclusive Errors & Omissions (E&O) professional liability product 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.  Click for Policy Coverage Details.