Business Risk Partners has launched a new standard E&O (errors & omissions) policy form for home inspectors. The policy, underwritten by Lloyd’s of London, reflects improvements across the board as a result of emerging exposures and market demand. In addition, a CGL (commercial general liability) policy, also backed by Lloyd’s, is now available to all home inspectors that purchase or renew E&O coverage.
‘Many home inspector E&O claims are preventable, but human beings make mistakes—and even claims that have no merit must be defended,’ says Lisa Doherty, president of BRP, which has been endorsed by the American Society of Home Inspectors for over a decade.
Doherty says that today’s inspectors are more exposed than ever as people have come to rely on their services when not only buying homes and commercial properties—including ones in disrepair after foreclosure—but after severe weather events like Hurricane Irene. As well, home inspectors increasingly perform a diverse array of specialty inspection services from radon testing to property preservation.
With the new BRP standard form, many previous endorsements are now built-in to each policy. Some of the new coverage components include:
- A 50% deductible credit for claims settled through mediation
- Automatic coverage for supplemental services such as radon testing, commercial inspections up to 50,000 square feet, and referring party coverage for real estate agents, etc. Energy Star inspections can also be included at no additional cost.
- Subpoena compliance outside of a claim in the event an insured receives a subpoena without being party to the litigation
- Protection against libel/slander
- Liability coverage in the event of a breach of your clients’ private information
The policy also offers ‘pay as you need’ additional coverage for property preservationists as well as mold, pool/spa, septic, termite and lead paint inspections.
Policy holders receive two free hours annually of risk management advice, including contract review, and a toll-free hotline.
The policy is being offered nationwide on a non-admitted basis to home inspector firms with revenues of up to $5 million. Policy limit capacity of up to $1 million per claim and $1 million in the aggregate is available with deductibles starting at $3,000.
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