E&O insurance for home inspectors

Errors and omissions insurance for home inspectors, often called E&O or professional liability, is coverage for claims that an inspection or report missed something or left it out. It is not the same policy as general liability, which addresses bodily injury and property damage during the visit. This page is education, not insurance advice.

Policies are contracts. Exclusions, limits, and whether a claim is covered are questions for a licensed broker and, if you are in a dispute, for your own lawyer. Nothing here is a quote or a promise that a carrier will pay.

What E&O is for

ASHI’s general-liability note describes errors and omissions claims as allegations of mistakes or oversights in the inspection report, and general liability claims as allegations that the business caused third-party property damage, bodily injury, or personal and advertising injury. InspectorPro, a home-inspector insurer, draws the same line: general liability for accidents during the visit, and E&O when a client says the inspection or the report was not adequate.

InterNACHI’s insurance page says home inspectors typically need both professional liability (E&O) and general liability. Carrying a policy is not the same as your state requiring one. Read the declarations page you are offered, not a summary on a blog.

Whether your state requires it

Some states require E&O, general liability, or both before you inspect for a fee. Others do not. This page does not list the states, because the list changes and a stale list is worse than none. Open your board’s current rule, or call the board, and ask what proof of insurance the application and the renewal require.

ASHI’s general-liability note says inspectors should carry both E&O and general liability even when the state does not require them. That is the association’s guidance, not a statute. If you are still getting licensed, the sequence is in how to become a home inspector. Insurance sits with the rest of the business setup in how to start a home inspection business.

Questions to ask a broker

Take this list to a broker who writes inspector policies. Write down the answers on the quote, not from memory.

1. Does my state require E&O, general liability, or both—and will you put that in writing as your understanding, while I confirm it with the board?
2. What limit and what deductible are on this quote, and what do I pay out of pocket if there is a claim?
3. Is the policy claims-made? If it is, what is the retroactive date, and what happens to earlier inspections if I switch carriers?
4. Which ancillary services I offer are covered, and which are excluded? Name radon, wood-destroying organisms, sewer scopes, or anything else you actually sell.
5. Is general liability in this policy or separate?
6. What belongs in the claim file: the agreement, the report, the photos, and anything else?
7. Who defends the claim, and does defense spending reduce the limit?

What affects the premium

There is no single national price on this page. InspectorPro writes that higher coverage limits cost more, that a higher deductible generally lowers the premium, and that claims history is one factor they review—including whether you were at fault, how you cooperated, and what the claim cost. Insureon also names the services you offer, the size of the business, revenue and inspection volume, experience, and location. Another carrier can weigh a different set. The number you budget is the quote, not an average from an article.

Why the report is part of the file

A clear report does not decide whether a claim is covered. It is the record of what you were hired to do, what you could not inspect, and what you observed. Photos that sit with the finding make that record easier to read than a camera roll assembled later. ASHI’s Code of Ethics says inspectors do not disclose inspection results or client information without client approval, with a narrow allowance for immediate safety hazards. Keep the file. Do not treat documentation as a substitute for the policy.

A workspace that keeps the photos on the same job as the words is a separate choice from the insurance. See the inspection software guide. You still publish the report yourself.