E & O a marketing tool?

In RI home inspectors do not have a licensing mandate yet. So there is no required E&O (errors and ommisions insurance) either. Because of no licensing and no required E&O all of the local real estate offices actually teach realtors not to refer to any specific inspector. The best you can hope for is that the realtor passesd out your card/brochure in the stack of them they give to a client. The thought seems to be if the realtor doesnt specifically refer one inspector and leaves the burden on the buyer to select a qualified inspector, the realtor limits their own liability. i dont agree with it, but i do understand it.

My E&O policy actually has an additionally insured clause that extends to any real estate or construction or financial profesional that refers me. Many policies do not have this protection. (my insurance agent is married to a realtor, so it figures he’d pick a policy that included it)

That being said, the additional layer of protection afforded to those who refer you may sway someone who has no experience with you to begin refering to you.

Thoughts or experience with tis concept?

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If your E&O Insurance offers indemnification…
send an Indemnification Certificate to your Referral after every Inspection…
It works…

Don’t let anyone tell you that the inclusion of the agent/referral indemnity coverage is a violation of RESPA either. That rumor was floating around not too long ago and it was false…

I’ve heard arguments on both sides of whether or not advertising E&O invites a lawsuit. Here is something to ponder… We see A LOT of claims from states such as New Jersey, Louisiana, Mississippi, Alabama. Can you guess what they all have in common?

Licensing and Lopsided Consumer Protection laws?

Fortunately we dont have licensing ot ovekill CP laws. There has been a licensing proposal on the books here scince 2001 or so, but it never passes the state congress vote. The bill is set aside for lack of funding.

If you have it, flaunt it. That is my opinion.

Additional insured for referring parties is actually quite common from what I have seen.

I post proof of my insurance on my website as well as emailing a copy to all REA’s in my area every time I renew.

Yeah…it works for me.

I dont use my E&O and GL coverage as a marketing tool. In my opinion, E&O coverage is there for my protection and my client should hire me because they trust me not because I have E&O insurance.

Again, this is my opinion and I have seen other home inspectors use it for marketing, putting it on their business cards etc - I dont


The client should hire because of qualifications etc…My issue is REA’s are hesitant to refeer you (most will give out 3 names minimum and not refer any inspcector in particular) because of their own liability. If that liability were lowered, they may be less hesitant to refer to you.