Generally speaking, the most important coverage for a home inspector to carry is almost always Professional Liability.
Also known as E&O or Errors and Omissions insurance, this coverage is designed to protect a home inspector against the potential costs of a lawsuit.
Beyond E&O, most home inspectors should also carry General Liability. This coverage can help with the cost of an injury or damage sustained by a third party that was caused by your business operation.
If you rent or own an office for your home inspection business, you’ll likely also want to look into Commercial Property Coverage.
Designed to cover the cost of repairing or replacing damaged property, this coverage can help reimburse a home inspector for the cost of recovering from a fire, theft, or other loss.
Along the same lines, Business Interruption insurance is another important coverage to consider. Also known as Business Income Insurance, this coverage can help reimburse the policyholder for income lost during the recovery phase of another covered loss.
As a self-employed electrical contractor, you should probably carry a Commercial Package Policy. Abbreviated as a CPP or PKG, this bundled coverage is designed to protect your business’s buildings, property, and other business assets. It also protects you from legal liabilities created by your business operations.
A typical CPP for a home inspector includes three basic coverages — all important for every type of business to carry:
- Commercial Property Insurance: Commercial property insurance covers your firm’s office, property, and assets in the unfortunate case of a loss or damages.
- General Liability Insurance: General liability insurance is one of the most common and important coverages in the small-business world — well beyond the world of insurance for home inspectors. It should generally be included in every small-business insurance policy. General liability coverage can protect you against financial loss from lawsuits filed against your business.
- Business Income Insurance: This insurance is designed to protect against an unexpected loss of income. For example, in the unfortunate case of a flood at your office, your business income insurance would help cover lost wages while you rebuild or recover.
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