What’s anybody’s opinion about home inspectors needing errors and ommissions insurance?:roll:
You have two options…
A. If you can’t afford like most can’t do your best cross your T’s and dot your I’s and hope you don’t get caught.
B. Once you get caught strong possibility is your going to wish you had E&O.
Some inspectors think that they can just file bankruptcy if they get a big judgement against them. This is not the case, I know a builder who wanted to do that and it was not allowed in his state.
I have always heard that all businesses get sued eventually, not just inspectors.
And then some inspectors are self insured.
In Nevada its state law,100,000 gl 100,000 e&o
Most claims are way below the ded. of the policy. You end up paying anyway.
Move to Florida, your home, health insurance account and retirement funds are beyond the grasp of the greedy lawyers.
For now anyway.
But you have to buy a new roof every couple of years.
Forever.
Whatever
If you get E&O do not let anybody know you have it. It is well known the insurance companies will pay out even if it could not possibly be the inspector’s fault. Sad but true.
As fantastic as it sounds I have know of instances where inspectors use E&O as part of their marketing plan.
How about a statement I saw in a client contract that said the inspector would only be liable for up to the cost of two inspection fees for any oversight or omission. Is that a valid or protective?
How about an LLC?
There has been some in recent years in my area too. They are no longer in business.
They best way to go.
An attorney and/or accountant may be more helpful for your questions.
Limitation clauses are upheld in some states but not in others. Corporate structure, i.e LLC per your question, is going to be more for taxation purposes than liability in most cases.