How to Save Money on Home Inspector's Errors and Omission (E&O) Insurance

Home inspector's errors and omission insurance, more succinctly referred to as E&O insurance, offers protection against professional liability claims. Coverage guards your bottom line in the event of claims against you resulting from a home inspection mistake, or even a perceived home inspection mistake.

Policies and coverage details vary, as do the costs. There are several effective ways to save money on errors and omission insurance for home inspectors. While individual companies have their own policies and practices, the following steps may help you save on your premium.

Work with an insurer who offers flexibility and customization with their E & O Insurance plans. The company should be able to scale the policy to your business and otherwise tailor it to makes sense for you, your overhead concerns, and other individual needs.

Membership(s) in home inspectors' associations often entitles you to discounts on errors and omission insurance. Organizations such as: The International Association of Certified Home Inspectors (InterNACHI), the American Society of Home Inspectors (ASHI) or the National Association of Home Inspectors (NAHI) are great ways to receive discounts on your E & O Insurance. Learn more about these organizations and more at:

InterNACHI American Society of Home Inspectors (ASHI).
National Association of Home Inspectors (NAHI)
In addition, look into state-based home inspectors' organizations such as TAREI, CREIA and more for other states. Or simply ask us to start saving on your insurance premium.

Modernizing your home inspection services with contemporary technology provides opportunities to save money on errors and omission insurance. Invest in home inspector's software many are approved for discounts on your insurance premiums. Applications are even available for mobile devices to assist with actual inspections. Software that helps ensure thorough inspections, organize reports, and easily send them where they need to go reduces errors and omissions. Of course, that's a bonus to your insurance company, so it will often be willing to reduce the cost of your E&O plan.

Adopt pre-inspection agreements as a standard practice to protect yourself against some liability. They provide the opportunity to define limitations of your home inspections and to have them acknowledged in writing. For example, strong pre-inspection agreements explain that you are not providing specialized inspection as can be obtained by engineers, geologists, environmental organizations or other niche professionals; they also outline areas beyond the inspector's ability to make evaluations, such as concealed spaces and structures and equipment underground or inside walls. Consistent use of a thorough pre-inspection agreement can often lower the cost of your E&O insurance.

Along with these steps, talk directly with a representative of your home inspector's errors and omission insurance coverage provider. Practices and policies vary from company to company. Your provider can offer suggestions for other measures that would reduce the cost of your E&O insurance plan.