New Inspector Insurance Coverage

[John Achin]

I would love to get some feedback about what type of insurance coverage I should get. I am a new inspector also offering radon testing. Some insurance companies have told me that I can only get general liability coverage by purchasing E&O. E&O is so expensive and is it necessary even though the inspection agreement states that the client is only entitled to reimbursement of the inspection fee? I live in a rural area and only expect to get a few inspections a week. The cost of E&O seems so high for the amount of work that I will be doing. Also, it seems like the E&O coverage is only for each policy period, so someone could sue you just as easily a couple years down the road. Any input would be appreciated....

[Scott Patterson]

I would love to get some feedback about what type of insurance coverage I should get. I am a new inspector also offering radon testing. Some insurance companies have told me that I can only get general liability coverage by purchasing E&O. E&O is so expensive and is it necessary even though the inspection agreement states that the client is only entitled to reimbursement of the inspection fee? I live in a rural area and only expect to get a few inspections a week. The cost of E&O seems so high for the amount of work that I will be doing. Also, it seems like the E&O coverage is only for each policy period, so someone could sue you just as easily a couple years down the road. Any input would be appreciated....

Check the requirements in your state. I know that VA has the screwy "Volunteer" license program, but you need to go ahead and bite the bullet and become legit. Get your state license. From talking with other inspectors in VA, most real estate agents only recommend those that have the state license.

Yes, E&O is expensive when compared to other types of insurance you are use to buying. But, as a new inspector you stand a greater chance of needing it. It is a great deal less expensive to have E&O if you are sued for screwing up than if you don't have it and you have to foot the legal bill by yourself.

I have great memories of going to the BSA Camp Goshen. Back in I think it was 1971-72 I was at camp when a hurricane came up and caused a great deal of flooding. Knocked out the roads and bridges, we were stuck at camp for a couple of weeks before they could get temporary bridges built. Kids loved it and the parents, well you can imagine!

[Billy Stephens]

John,

Check out FREA.

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