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Errors and Omissions Insurance for Home Inspectors

Whenever a home inspector takes the job to come into a residential home in order to tell someone whether they are making a good investment or not, or to simply approve a new construction for the homeowners to move in, they are taking a risk. This is a risk that can cost them thousands of dollars should the clients file charges against them. This is why it is important to have Errors and Omissions Insurance. What exactly is this type of insurance?

This insurance covers the home inspector should something happen that was really no fault of their own. For example, let’s say that the home inspector gives a couple the go ahead to purchase a house after inspecting and finding nothing really wrong with the home. Two weeks later, the couple moves in only to find out that they have a leaky water pipes. Though, the inspector did not find this at the time of inspection, he or she can still be liable for it according to the clients wishes. Thus, they do not want to face a lawsuit for something they they did not catch or was not there when they first inspected. Thus, where the protection comes in. In addition, many times client may claim that the inspector did not document the problems that were existing in the home, thus it led the clients to have issues once they were in the home that they were not made aware of. When this happens, they can file claims against the inspector in which they will have to pay out of their own pockets, unless they have this insurance.

This insurance is usually available in amounts up to five million dollars, with deductibles that are around $5,000 or so, depending on which policy the person chooses. In regards to which to choose or if the inspector should carry the insurance, then they should consider the state that they are practicing. Most states are requiring that inspects have this type of insurance, as well as requiring that they have certain deductibles and coverage amounts.

Errors and Omissions Insurance for Insurance Agents

There are many types of errors and omission insurance for insurance agents. In several states errors and emissions insurance is required by law. This will cover agents who may have made some sort of errors that create their clients financial problems when the agents make some sort of error in assigning coverage. Since it is extremely costly insurance it should purchased primarily when there is a contractual obligation to do so. It can serve as protection for the agency however so it can be essential in that way.
Since errors and emission insurance is a sort of professional liability insurance quotes are available online for agencies that may this type of insurance. This may be the best way to get this insurance as it could be purchased for a reduced price online, and it would give the agency the ability to compare quotes on the various types of policies available.
E and O insurance as it is known, does not guarantee that your agency won’t be sued, it simply is a protection against a lawsuit that could potentially bankrupt the business. It is important to have some sort of protection against financial ruin.
Some investors require errors and omission insurance before investing in a business so it is good to get this insurance in place before opening an agency. Professional liabilty insurance is also good for those who are independent contractors and are not otherwise covered by an agency policy.
Even those this insurance is expensive it is the cost of doing business and should be in place for agencies. Prior to purchase it is important to consider how large your particular agency is, how many clients you have and whether or not your clients would be likely to sue if they become unhappy. It is important to evaluate your companies need and buy coverage accordingly.

Errors and Omissions Insurance

Errors and Omissions Insurance (E&O) is a separate rider that can be purchased with a business liability policy. This type of insurance is mainly used by professionals that deal in contractual areas of the law. This includes real estate agents, lawyers, accountants and Notary Publics. Other businesses can purchase Errors and Omissions insurance if they believe actions they take may leave them at risk of liability.

An Errors and Omissions Insurance policy protects the individual or company from accepting total liability when a mistake has been made that has caused financial harm to another person. For example, if a real estate agent fails to disclose a property was subject to a natural disaster, and the damages from that disaster later caused monetary damage to the new owner, the purchaser could sue the agent for damages. If the agent has an E&O policy, this policy will cover the damages up to the amount of the policy.

These policies are often cost prohibitive for a smaller company or individual to purchase. Type of profession and risk assessment will determine the cost of the insurance policy. Again, this type of policy is above any business liability policy the company may hold.

Some states require certain professions to carry Errors and Omissions policies to practice their trade in their state. Florida, as an example, requires architects and builders to carry these policies as well as Notary Publics. These requirements are part of their licensing in the state. Each state has separate requirements and this should be verified with the State Department of Insurance.

Accountants often carry this type of policy to cover any mathematical mistakes that may occur in their calculations. If a client is damaged financially through your accounting methods, they can seek damages through your E&O insurance.

Malpractice Insurance is the name for Errors and Omissions insurance in the medical field. This is the exact same type of policy, except it refers to damages that have caused physical harm. All doctors are required to carry malpractice insurance. Now, with the emergence of many nurse-practitioners, malpractice insurance requirements have been extended to other parts of the medical trade.