A home inspector’s job is important because it lowers the risk potential home buyers face when buying a home. Your yes or no is often the determining factor when it comes to closing a real estate transaction. However, along with that responsibility comes a measure of liability. As a consequence, this can leave a home inspector financially vulnerable to a lawsuit.
Protect your home inspection company from financial loss with small business owners insurance, especially if it includes errors and omissions coverage. You may be more vulnerable than you thing. For example, any disgruntled client may hold you responsible for omitting building flaws in your report. Your legal costs are likely to be covered in these cases.
A real estate agent often refers a home inspector to the buyer. It is interesting to note that agent is also covered from loss under your business owners insurance policy. So clients, friends and business associates can freely refer your services without risk. As you can see, it pays to have the right insurance coverage. You can even make your insurance protection part of your business marketing plan.
Homeowners will also be more comfortable if you have insurance coverage. This is because your own general liability insurance will cover the damages if you fall off the roof and suffer injury or damage the siding while probing for wood rot, not their homeowners insurance.
Your home inspector insurance policy can be tailored to meet your insurance needs. You can include cover for inspections related to insect or rodent infestations, well and septic systems, radon readings and more.
An important part of your small business owners insurance is Errors & Omissions insurance. Imagine you are called to conduct a home inspection for a prospective real estate buyer. You note that the 15 year old furnace is operating well. However, it is getting old. However, you do not perceive it to be a problem. You are surprised to receive a letter six months later, in the dead of winter. It is from an attorney. He advises that the home buyers have filed a lawsuit against you.
They claim you passed over the need of a furnace replacement in your report. They want you to pay for a new one. You feel your inspection report was clear. The home buyers feel they were led to believe the existing furnace would be fine for a couple of years. Now, after only six months, the furnace has stopped working beyond repair.
Your home inspection business does not have to just cave in. This is because you have errors and omissions insurance. The final result will be decided by the court or through arbitration. Meanwhile your insurance will cover things like attorney fees to represent your interests and court costs.
Your omissions insurance will cover costs if your home inspector service is found liable and compensation is awarded to the home buyer.
Your home inspector business is protected against injury and property damage claims by your general liability insurance. That represents the core of your small business owners policy. Errors and omissions insurance protects against claims filed by clients who take issue with the validity of your real estate reports. That’s the minimum insurance to meet your insurance needs and protect your business from a devastating lawsuit.
Small business owners often feel their risk is minimal and premiums are high. Perhaps you don’t know that a qualified insurance agency can help save you money on premiums. However, you might feel your risk is small because you trust in the basic kindness and understanding of your clients.
When people purchase real estate, they are likely making the largest investment of their lives. They may have used all their savings and be feeling a little cash poor for a year or two. They put their faith in your home inspection report. So, if you do happen to overlook a detail and that results in an unexpected expense for them, they are coming after you.
You may want to bundle other policies into your business owner insurance. For example, property insurance, which will protect for the building you work from. Another example is coverage for expensive tools and equipment. We also offer a policy for loss of business income. This covers lost income as well as operating costs for up to one year. Of course, you are required by law to carry workers compensation insurance for your employees.
Insurance policies can be tailored to meet your home inspector insurance needs. Insurance is a cost of doing business. Besides, it is tax deductible. Most importantly, your personal property will be safe from claims against your business assets. Find out more about the best insurance coverage for Home Inspectors. Contact John today!
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