I don't know Gary, that is a question that only you can answer. Though many inspectors do not carry E&O, I would not recommend doing an inspection without it, even if you do business as an LLC. In this business, your name is everything. If you operate under the umbrella of an LLC and after building the business for XXXX years, then have to fold to prevent a lawsuit that E&O would have covered, you have to start all over again from square one and re-build the business with a new name. Even then, it will be difficult for you to explain to those who remember you from your last business why they should trust you with their inspection when you are willing to fold up instead of making it right.
3 inspections in 2 years is not a good start. Are you not confident in yourself, do you have any construction experience? In this business, you will continue to learn new things all of the time, if you want to provide the best inspections to your clients. Getting sued is a real fear and I hope that I never have to face it, but the more value that your client gets from your inspection, the less likely you will get sued. Don't bow down to anybody and down play issues. Your #1 priority is to provide an inspection, at the best of your abilities, to the person buying the home. Remember that if you do bow down for the sake of referrals, you are the professional that was hired to give the inspection and in enough time you will most likely be sued.
Working for another company may be a good start for you, but you may find it hard to get on with a company only having 3 inspections under your belt. Try to find a company that has you go with them on inspections during your training period. It will help you learn and increase your confidence. If you do go with a company, you may have to sign a no compete clause that will prevent you from starting your own business and marketing in their service area for a period of time after you terminate employement with them. You may be doing 2-3 inspections/day and have to work weekends while only getting about 1/4 - 1/3 of the fee for each inspection.
I like working for myself. No body can tell me that I have to inspect homes in certain areas (although I haven't turned one down yet), you make your own schedule and have to answer to no body except for the clients who are ultimately your real boss anyway. If you are very thorough in you inspecting and documentation and it takes you 4-5 hours to inspect a home, that is the way you schedule them. If you are less thorough in your inspecting or documentation and can do 2 in a day, you decide if that is something that you want to do. You make all of the business decisions, provide your own
insurance and do your own marketing, but keep all of the profit. But you have to market, at least in the beginning. If you offer a good product, referrals will keep you busy in the future but you need to market now in order to even have the opportunity for future referrals.
Good luck with whatever you decide.