A home inspector's core coverage is Errors and Omissions (E and O), which responds when a missed or misreported defect causes a buyer a financial loss, plus General Liability for on-site injury and property damage. Many states require E and O and/or GL to hold the inspector license — confirm your state's rule with its licensing board. Inspectors who offer radon, mold, or sewer-scope services should confirm those are covered, as they can be excluded.
Home inspection is a claims-prone profession: a defect you miss (or a buyer says you missed) becomes a financial claim, which is why E and O is central and, in many states, mandatory to license. This guide covers the coverage stack, the licensing mandate, the claims inspectors face, and the specialty add-ons. It is general education; confirm your specific requirements with your state board.
The home inspector coverage stack
Errors and Omissions (E and O)
The flagship coverage: responds when a missed or misreported defect causes a buyer a financial loss. Usually written claims-made.
General Liability
Covers on-site bodily injury and property damage — you or your equipment damaging the home, or someone injured during the inspection.
Specialty service coverage (radon, mold, sewer scope)
Ancillary services can be excluded from a base policy. If you offer radon, mold, sewer-scope, pool, or wind-mitigation inspections, confirm they are covered or endorsed.
Commercial Auto / Tools / BOP
Commercial auto for driving to inspections, coverage for your inspection tools, and a BOP if you have an office. Workers comp if you have employees.
Options matched to your inspection business.
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The licensing mandate
Home inspection is a licensed profession in many states, and a number of those states require proof of E and O and/or general liability to issue or renew the license — the requirement and any minimum limit are set by each state's board. Because the rules vary and change, confirm your state's specific requirement with its home-inspector licensing board rather than relying on a secondary summary.
Common home inspector claims
Home inspector sub-niches
Residential inspector (the core), commercial property inspector (higher limits, distinct exposure), and specialty inspectors — radon, mold, sewer-scope, pool, and wind-mitigation — who need those services covered. Because E and O is usually claims-made, mind your retroactive date and tail when you switch carriers. See occurrence vs claims-made.
Frequently Asked Questions
Do home inspectors need E and O insurance?
Yes — it is the core coverage, responding when a missed or misreported defect causes a buyer a financial loss. Many states also require proof of E and O and/or general liability to hold the inspector license; confirm your state's rule with its board.
Is E and O required to be a licensed home inspector?
In many states, yes. A number of states require proof of E and O and/or general liability to issue or renew the license, and set any minimum limit. Because it varies, confirm the requirement with your state's home-inspector board.
Does home inspector insurance cover radon or mold inspections?
Not always. Ancillary services like radon, mold, and sewer-scope can be excluded from a base policy. If you offer them, confirm they are covered or add the endorsement.
What is the difference between E and O and general liability for inspectors?
E and O covers financial loss from a professional error, like a missed defect. General liability covers on-site bodily injury and property damage, like damaging the home during the inspection. Inspectors typically need both.
Is home inspector E and O claims-made?
Usually yes. Protect your retroactive date and buy tail coverage when you switch carriers so prior inspections stay covered.
What are the most common home inspector claims?
Missed or misreported defects — roof, foundation, and moisture/mold issues are frequent — plus damage caused during the inspection. E and O responds to the professional-error claims; general liability to the physical damage.
Quick glossary — home inspector terms
- Errors and Omissions (E and O)
- Coverage for a buyer's financial loss from a missed or misreported defect; the core home-inspector coverage.
- Ancillary services
- Add-on inspections (radon, mold, sewer scope, pool) that may need to be specifically covered.
- Referral / drop coverage
- Some policies address liability tied to referrals; check how your policy treats it.
- Claims-made
- The usual E and O policy form — protect your retroactive date and buy tail when you switch.