As a licensed home inspector, you play a pivotal role for real estate professionals, buyers, and sellers with your accurate and reliable assessment of the client's property’s current condition. This expertise requires home inspectors to have extensive knowledge of building construction and the five main systems: foundation & structure, roof, plumbing, HVAC, and electrical. However, in the high-stakes real estate market, where an inspection report can make or break a deal, home inspectors face potential liability risks. For instance, an error or omission in your report can open the door to a costly lawsuit. Additionally, you or an associate may sustain injuries from slipping and falling on a wet driveway, or your company vehicle might be involved in a minor accident while traveling to a client appointment.
To mitigate these and other risks, a commercial insurance policy is essential. It provides the liability protection you need to protect your personal and business assets, as well as your professional reputation in the community.
Do Licensed Home Inspectors Need Insurance in Florida?
Yes, all licensed home inspectors working in Florida are required to carry commercial general liability (CGL) insurance that meets the state’s minimum coverage requirements of $300,000 for third-party property damage and bodily injury. Please be aware that state insurance requirements are subject to change. Contact your CIS agent for the latest information.
What Kind of Insurance Do Home Inspectors Need?
For complete coverage, home inspectors should consider the following types of policies:
Commercial General Liability (CGL)
This mandatory policy for home inspectors covers claims of third-party bodily injury and property damage that are not a result of your professional services. For example, if a client trips over your equipment and is injured, or if you accidentally damage a client's property while on-site, a CGL policy would cover the resulting medical and legal expenses.
Professional Liability (Errors & Omissions)
While not mandatory, an E&O is an inexpensive and essential add-on policy. It covers claims alleging professional negligence, errors, or omissions. It also pays legal fees and any settlements or judgments, up to the limits of your policy, that arise from a client claiming you missed a defect or provided inaccurate information.
Commercial Auto Insurance
When using a vehicle for business purposes, a commercial auto policy is a must to provide coverage in the event of accidents, theft, or damage while on the road.
Workers' Compensation
Although not required for an independent home inspector without employees, workers' comp is mandatory if you have any employees in your business. It covers medical bills, a portion of lost wages, and other benefits for an employee who is injured on the job.
What’s Covered:
A typical commercial insurance package for home inspectors in Florida would cover:
- Third-Party Bodily Injury & Property Damage
- Errors and Omissions
- Legal Fees & Settlements
What’s Not Covered:
- Car Accidents (without a commercial auto policy)
- Non-work-related Medical Expenses
- Breach of Contract
- Poor Performance
- Criminal Acts
Other Coverage Options for Home Inspectors
Talk to your CIS agent about other insurance options that your business may need, such as:
- Inland Marine Insurance is essential for protecting your valuable inspection equipment, such as moisture meters, thermal cameras, and ladders, against theft, damage, or loss while traveling to or from a client.
- Commercial Umbrella Insurance provides additional liability coverage for CGL and Commercial Auto claims that exceed your existing policy’s limits.
Best Commercial Insurance for Home Inspectors Near Me
At Commercial Insurance Specialists, we pride ourselves on being a Trusted Choice independent agency committed to delivering outstanding results with insurance solutions for home inspectors in the Southwest and Central Florida areas. We serve a range of professions, including locksmiths, general contractors, and engineers, from Sarasota County to Polk County, including Pinellas Park, Bradenton, Lakewood Ranch, and Safety Harbor.
Reach out to CIS, and one of our licensed independent agents will assist you in finding the most competitive rates and coverage options for your home inspector business from leading insurance providers. Contact us today for a complimentary, no-pressure quote on professional liability insurance!
