E&O S corp

Hello I have seen a lot of post about getting E&O insurance. Well I am in the same boat I haven’t had E&O and have been in business for a year as a S corp. I’m new to the InterNACHI world and reading other peoples post about getting sued or having to appear in court is scaring the s%@* out of me. When I first started the business the person that told me to get a S corp. said that it offers me protection so it’s not necessary to get E&O insurance.
Like I said I’m new to this field and it’s been slow it’s going to be a major investment for me to get it. My other concern is that if the home inspection business does not pan out for me and I don’t carry the insurance anymore and a past client comes back to haunt me I’m going to be screwed because I will no longer be covered

Do you carry car insurance?

Aside from your decision to buy E&O insurance or not… you should never do any work for consumers. Your corporation should be the one contracting with consumers and providing inspection services for consumers. You should work for the corporation only, and never for consumers.

Very, very bad advice. The corporate veil can be pierced in hundreds of ways. There are many lawyers and firms that specialize in it. Simply fighting the legal action that seeks to pierce the veil can wipe out a business (and its shareholders), financially.

This is a very legitimate concern. E&O insurance is only in effect while the policy is current. Because you were insured in 2012 when you did the inspection that gets you sued in 2020 … you are not covered unless, in 2020, you are still actively insured.

Correct. Which leads me to additional advice… never own anything personally.

A Business just does not pan out. I believe any business you do you are either all in or all out!
If you are all in, “what are you thinking inspecting homes as a newbee without E&O insurance.” Nothing fully protects you from a lawsuit.
What is a major invesment?
$3500 on insurance?
Not sure why you are a s-corp when you are by yourself either?

If you need more business start by identifying your business where ever you post a comment at. Like this board.
Who are you?
what are your credentials?
What is your business name?
what is your phine number?
what is your website?

Are you all in or all out?

I agree completely.

People don’t succeed at many things because they can’t fully commit to it, especially in the very beginning when the task looks so huge and everyone is telling you about all the ways you’ll fail.

Form a Corporation
and be employed by the Corporation.
Inspectors should not be Owners and/or Officers of the Corporation.


I second that motion