Yet even a pre-inspection agreement won’t cover a home inspector from a wide range of legal action – that’s where E&O insurance comes in. It’s more reasonable to believe that you might never get sued over a mistake, than to suggest that you and your inspectors won’t ever commit a blunder on the job.

Home inspection business without E&O insurance can go belly up after a devastating lawsuit; clients can and do sue for millions of dollars if a home inspector overlooks something that later leads to trouble. A home inspection business with E&0 insurance, however, will only pay the policy deductible, which may be the difference between spending a few thousand dollars and a bankrupt business.

People looking at home inspection training should inquire whether a prospective home inspection school has relationships with professional home inspection associations. Some schools offer waived or discounted membership fees to associations, many of which offer reduced rates on E&O insurance. Don’t wait until it’s too late to protect yourself and your business from a devastating lawsuit.