E&O Insurance- needed or not?

Hi Team,
So I am just starting up my biz and my instructor told me that all I need is General Liability insurance. I feel that I may need E&O insurance as well cause what happens if you miss something and as we all know people are sue happy.
What’s your experience with this?
Alfonso - Cutting Edge Inspections

How lucky do you feel?

There are many schools of thought on this topic, most of which you can find on this forum.
If I were new, just starting out, although your instructor stated that all you need is GL insurance, I would strongly suggest you get E & O insurance for at least the first 5 years. Then you are covered.

The other school of thought is, don’t get it and “judgement -proof” yourself and all of your assets.
Anyone can sue, but as the old adage goes, “you can’t get blood from a stone”!

I do not have E & O…and never have. Nor would I ever have had to use it in 26 years.

I guess I have been lucky. :slight_smile:

Montana will not issue a license without gl and oe insurance.

Alfonso, If you can afford to loose whatever you have accumulated up until this point, and farther down the road, don’t get it. Lawyers have ways to get to your $, even if you try to make it not so. The least little mistake and there it goes.

Just a few days ago, someone forgot to have the client sign the pre-inspection agreement and he missed, what I understand, was a big structural issue in the crawlspace. He had E&O but who knows where that will go?

DO NOT EVER LEAVE YOUR HOUSE WITHOUT A SIGNED AGREEMENT. And if the clients are from out of state, payment in advance of the inspection. I got bit on that one. So, I asked my attorney what I could do and he said get paid in advance or don’t do the inspection. It worked for 20 years or more with no push back from anyone.

I, personally, would highly recommend that you get E&O, as well as the liability, insurance. :smile:

Hi Larry,
Ok that’s great advise. Your right it just makes sense to get. Thanks for the tip on the signed agreement, I would’ve thought of that.

Thanks Alfonso