The Consequences of a Mistake in the Home Inspector Report . Great responsibility means great liability. Protect your small business with home inspector insurance tailored to the way you do business and the risks you encounter. 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.