Errors and Omissions Insurance for Home Inspectors

Errors and omissions (E&O) insurance for home inspectors protects against claims of negligence, mistakes, or missed issues during inspections. It covers legal defense, settlements, and judgments, ensuring inspectors avoid costly financial losses.

Why Home Inspectors Need E&O Insurance

Home inspections are high-stakes. Buyers, sellers, and real estate agents rely on your expertise to make major financial decisions. A single overlooked issue, like hidden mold, a faulty roof, or outdated wiring, can lead to a lawsuit costing tens of thousands of dollars.

E&O insurance protects inspectors from these risks by covering:

• Legal defense costs – even if the claim is false.

• Settlements and judgments – financial damages awarded to clients.

• Administrative expenses – court fees and expert witnesses.

Without coverage, inspectors may face out-of-pocket expenses exceeding $50,000–$100,000 for one claim.

What Does E&O Insurance Cover?

Typical policies cover:

• Oversights or missed defects in a property.

• Failure to identify safety hazards.

• Errors in reports or documentation.

• Claims of professional negligence.

Some policies also include general liability coverage, protecting against bodily injury or property damage caused during an inspection.

Cost of Errors and Omissions Insurance for Home Inspectors

Premiums vary based on experience, claims history, and coverage limits. On average:

• Small firms/independent inspectors: $750–$1,200 per year

• Larger inspection businesses: $1,500–$3,000 per year

• Deductibles typically range from $1,000–$5,000

Choosing higher coverage limits (such as $1 million per claim) can raise premiums but offers stronger protection.

Benefits of Having E&O Insurance

• Financial security – avoid bankruptcy from a single lawsuit.

• Credibility – builds trust with clients and real estate agents.

• Contract compliance – many states and agencies require inspectors to carry insurance.

• Peace of mind – focus on your job without fearing every mistake.

How to Choose the Right Policy

When comparing insurers, look for:

• Coverage for subcontractors or employees.

• Retroactive coverage (protects for past work).

• Flexible deductible and limit options.

• Bundled general liability and E&O policies for savings.

Final Thoughts

Errors and omissions insurance is essential for home inspectors. It shields you from lawsuits, protects your finances, and strengthens client trust. With coverage as low as $2 per day, it’s a small investment compared to the risks of operating uninsured.

✅ With nearly 30 years of expertise, we search through almost 100 insurance carriers to find the best coverage at the best price. Fill out the form below to get your personalized home inspector E&O insurance quote.

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