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Home Inspector Insurance

Home Inspector Insurance

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When you work as a home inspector, there are many risks that could affect your business, from accidental property damage or bodily injury to professional liability lawsuits. Clients rely on you to provide them with accurate information about the homes you inspect; if they believe your inspection was negligent, they could sue your business. Purchasing a comprehensive range of business insurance can provide financial protection from a variety of hazards. 

What insurance coverage do I need as a home inspector? 

There are many types of insurance coverage to consider, but these policies are particularly relevant to home inspectors:

General Liability Insurance

General liability insurance covers incidents of accidental third-party property damage, bodily injury, personal injury, and advertising injury. Since home inspectors regularly visit other people’s homes, there is always a possibility that they might accidentally damage someone else’s property or cause an injury in the course of their work. If this happens, your company could be sued. 

General liability insurance can provide financial protection if your company is held liable for an incident. General liability insurance also includes a personal and advertising injury component, which can cover third-party non-physical injuries and reputational damage from libel, slander, copyright infringement, and more.


Professional Liability Insurance

Professional liability insurance provides financial protection if clients accuse you of negligence, failures, or mistakes in your professional work or advice. Clients rely on home inspectors as a key part of their home-buying process, and they could sue your firm if they believe you were negligent in your work, misrepresented your services, or violated a good faith agreement. Even if you are not at fault, defending a lawsuit can be costly and time-consuming. Professional liability insurance can step in to pay for your legal fees and any resulting settlements or judgments against you.

Additionally, professional liability insurance for home inspectors typically includes coverage for third-party bodily injury and property damage caused by your professional services. A common misconception is that this type of injury is covered by a general liability policy; however, most general liability policies come with endorsements that specifically exclude professional services from property damage and bodily injury coverage. If a mistake or omission in a home inspection results in a homeowner getting injured or property being damaged, professional liability insurance can provide coverage.


Commercial Property Insurance

Commercial property insurance covers the value of your business’s property, including owned or rented office space, furniture, office supplies, tools, equipment, and other business items. If your business operates from commercial office space, you’ll likely need this coverage. Commercial property insurance can provide funds to replace or repair damaged property in the event of a fire, storm, explosion, or other covered peril.

Commercial property insurance covers the following:


Inland Marine Insurance

Inland marine insurance provides financial protection for your business property that does not remain at a fixed location and is not covered by a standard commercial property policy. This could include equipment, tools, and other items. This is an important coverage to consider if your home inspection services rely on valuable equipment you transport from location to location, such as cameras or radon detectors. Inland marine insurance will protect your property no matter where it is.


Commercial Auto Insurance

Since home inspectors drive from house to house to perform inspections, it’s important to make sure that you have adequate auto insurance coverage. If your business owns or leases vehicles, commercial auto insurance is a key coverage that is legally required in most states. If your employees are involved in a car crash, commercial auto insurance can provide coverage for physical damage to vehicles, third-party bodily injury, and property damage. Commercial auto insurance can also provide coverage for damage to your vehicles caused by covered perils, including theft, falling objects, fire, and more.

If your employees drive their own vehicles for work purposes, their personal auto insurance may not be sufficient to cover any claims if they’re at fault in an accident while on the job, and your company could be held liable. Hired and non-owned auto insurance will cover these incidents. It can be added as an endorsement to a commercial auto, general liability, or business owner’s policy or purchased separately.


Business Owner’s Policy

For qualified small and midsize home inspection companies, a business owner’s policy (BOP) may be a good way to purchase a wide range of coverage in one convenient bundle. A business owner’s policy provides coverage for key property and liability risks that most businesses face, including general liability, commercial property, business income, and extra expense coverage. Buying a business owner’s policy can help you save money on premiums, as the cost is typically lower than purchasing each coverage separately.

Additional Coverages

Pricing and Quotes

Pricing for home inspectors insurance will vary based on the type of insurance coverage and the risk profile of your business. Insurers consider factors such as:

Businesses with higher risks will have higher premiums than those deemed lower risk. For example, a home inspection business with a history of frequent claims will face higher premiums. Premiums also rise as you increase the limits of insurance. Different insurance companies have different models for rating risks, so it is worth comparing pricing across different insurers.

In order to get an accurate estimate on pricing, it’s best to get a quote from a reputable insurance company. Below we’ve highlighted a few of our trusted partners who offer coverage for home inspectors:

ProviderGeneral LiabilityProfessional LiabilityBusiness Owner's Policy

Final Word

When you work as a home inspector, it’s important to prepare your company for the risks you could face. No matter how expert and meticulous you and your employees are, there’s always a possibility that you could make a mistake or cause property damage or injury. Clients could also sue you for perceived errors even if you have done nothing wrong. In addition to professional errors, your business could be affected by common hazards that most businesses are subject to, such as fires or accidents. Securing a wide range of insurance coverage will ensure that if a catastrophe occurs, your company will be financially protected.

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