Today’s litigious society puts a home inspector clearly in the cross hairs of a possible lawsuit. It is not difficult to imagine the ramifications of a mistake, real or imagined, and the response of an angry new homeowner. The cost of legal defense coupled with potential judgments can cripple a small business.
Securing an effective errors and omissions (E & O) policy is a must, but how much should home inspector insurance cost? The median annual E & O cost is $758 or $63 per month, but several factors determine the cost of a particular policy. Here’s a quick look at what you need to consider when figuring a budget for home inspector insurance cost:
Deductible options: Premium cost will partly be determined by the cost of the deductible. Deductibles generally range from $1,500 up to $2,500 and $5,000.
Liability options: Depending on the size and the scope of the company, E & O can offer liability backing from $100,000 to $2,000,000 or more.
Services offered: Not every home inspection company is the same. Some providers offer more services: and open themselves up to more litigation: and thus require a more comprehensive policy.
How much should you pay for an E & O policy? Consider your company’s needs and determine the scope of insurance required.