Iron Clad Contract

[Greg S. White]

Forgive me if this question had been asked. I am new to the business- recently completed all of iNachi first year requirements, have been on 3 "tag along" inspections and recently purchased Home Inspector Pro. I would like to get started, but the cost of E&O insurance is slowing me down. Is there an "iron clad" contract that would make a lawsuit (California) unlikely? I am incorporated, but I want to make sure I protect my personal assets. I have heard that there are two types of home inspectors: those who have been sued, and those who will be! Please advise.

[Larry J. Michael]

No such thing as Iron Clad. NACHI has a great contract, but nothing is bullet proof. You have taken most of the right steps especially being incorporated. Make sure that you don't do anything that could pierce the corporate veil. Keep all business and personal separate.

[Nick Gromicko]

http://www.nachi.org/newagreement.htm

[Nick Gromicko]

How inspectors can avoid lawsuits.

[Larry J. Michael]

Great info Nick

[Greg S. White]

Thanks, Nick

[Brian E. Kelly]

incorparating is not protection for you as the one who did the home inspection.

[Nick Gromicko]

Yes it is. Why wouldn't it be?

[Gary Farnsworth]

It is protection from someone placing a judgement against your personal property.

[Greg S. White]

Since I have no corporate assets, I only want to protect my personal assets

[Nick Gromicko]

Your personal assets aren't at risk if the inspection was provided by your incorporated inspection company.

[Nick Gromicko]

I'm the all-time king of asset protection... and I'm a bit of an ****hole on top of it. Basically indestructible from an asset protection standpoint. When I tell someone "so sue me," I'm essentially inviting them to waste their money.

[Greg S. White]

Nice- Then I'll follow up with a "dumb" question: If I am incorporated and the corporation fee is $800 per year, why would I ever purchase E&O insurance for thousands?

[Vaughn Hill]

Originally Posted by gwhite2

Nice- Then I'll follow up with a "dumb" question: If I am incorporated and the corporation fee is $800 per year, why would I ever purchase E&O insurance for thousands?

When someone sues you they are likely to sue you (the person) and not your company.

[Greg S. White]

Nick-what say you? Really? In California, I don't think so