Frequently Asked Questions For The Home Inspector Regarding Their E&o Or Professional Liability

The following list of frequently asked questions and answers may help to ensure that as a home inspector you are getting the coverage you need.

Question: Is Professional Liability coverage the same as Errors & Omissions (E&O)?

Answer: Yes Both terms are used to describe your policy and mean the same thing.

Question: What is the difference between General Liability and Premises Liability Coverage?

Answer: Premises Liability is usually an added endorsement to an E & O policy that will provide you with coverage for any bodily injury or property damage claims that arise at a premises that you do not own, rent, lease, or occupy (mean not your office but the job site) during the course of a Home Inspection. An example of a covered claim would be a ladder falling and breaking a window or someone tripping over your tool bag.A General Liability policy will also provide this same bodily injury and property damage coverage, but it will not be limited to home inspections nor have the location limitation, but the examples of covered claims are the same. The General Liability is written separately and is usually more expensive that the Premises Liability endorsement to the E&O policy.

Question: What is a Retro Date or a Retroactive Date?

Answer: Your Retro Date can be found on the declarations page of your current insurance policy. Your Retro Date represents the date that coverage begins for any claims. It is important that you check the date so you do not have any gaps in coverage. For Example: If your Retro Date is July 1, 2009 you will have coverage for any home inspection claims made during the policy period that you performed since July 1, 2009. If you do not currently have insurance then your Retro Date will be the inception date of your policy. The retro date can also affect your premium.

Question: What is a Loss Run or Loss History? And why do I need to provide it to you?

Answer: A loss run is a statement from your previous carrier that will show the dates that you were covered, may include confirmation of your retro date, and if any claims were made against you and some detail about those claim. Providing the loss detail or confirmation that there have been no losses will affect your premium.

Question:What is a binder?

Answer: A binder is temporary proof of coverage showing your business name, your effective date, your policy number, your limits or insurance and endorsements or additional coverages. The binder is usually issued for only 30 days but may be issued for longer. The binder will be replaced by the actual policy when it is issued by the insurance carrier and is considered acceptable proof of coverage.

Question: What is a certificate of insurance?

Answer: A certificate of insurance is a form that shows your business name, the dates that you have coverage, your policy number, your limits of coverage, and endorsements. It can also list a certificate holder or an additional insured if you are required to do so by a contract. These can be requested once coverage is bound by a simple request on our web site at www.eiipro.com

by: Susan McCrossin

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