E & O Coverage

E & O coverage offers you or your company and your employees' additional
protection against claims or lawsuits for mistakes or omissions which may
have caused financial losses for your client. The insurance can be written
to protect you from attorney fees as well as the amount of a settlement if
you are found at fault. Consider the following information about the
insurance coverage as it relates to your business:

* Errors & Omissions Insurance can cover W2 employees and 1099
subcontractors, worldwide.
* Many VC's and other investors require this coverage, including state
and federal requirements for licensing and potential jobs.
* This type of coverage is generally excluded by your Commercial General
Liability policy, and if there is additional coverage for this exposure it
may have limitations that you may not be aware of.

The cost of each home inspector errors and omissions insurance contract
varies with its specifics. Each contract should be written specifically for
you, and should contain the following information:

* Dollar amount for each liability
* Deductible amount for each liability
* Deductible amount for defense costs
* A section explaining what the policy is for: "This policy applies to
errors, omissions or negligent acts in the course of providing or failing to
provide professional services."
* A section listing the services you provide in as much detail as
possible
* The retroactive date for claims ( unless written by an occurrence
form)

Every company can and will make a mistake at some point. Be prepared.
Purchase Errors and Omissions coverage to insure your mistakes, your
employees' mistakes, and even mistakes made by the contractors you hire.