I have a similiar situation here in Quebec. Start up inspector. Major broker will not quote me unless I am a member of InterNACHI Quebec (I am not). Trying to find another broker but application process is tedious and many do not provide E&O in Quebec. Been advised that those who do the rates very high. Apparent high risk of lawsuits for home inspectors.
Open to suggestions from local guys.
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Hey Alfred,
E&O insurance went from just over 200$ a month to the renewal that skyrocketed to double this amount. So… with membership fees, compulsory training costs and insurance , the yearly cost is around 6K. This does not include office and operating overhead and taxes to pay at the other end. Makes you wonder eh?
Hi Geoffrey,
Costs are relevant to the number of inspections one can do in the year.
At an average price of $400 (average of condo and single family) you would need 15 per year to cover these costs.
What would you say is a minimum per year to make a living?
Is it not viable in your market?
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It does cost $ to run a business. In some areas, it is more and less in other areas.
THAT is why it is important to KNOW your cost of doing business (Cost per inspection, for instance.)
Getting E&O insurance in Canada is getting more and more difficult! We at the Quebec Chapter (InterNACHI-Québec) have the lowest E&O rates in our market (province of Québec) and have been with the same insurer/broker for 8 years! Hey Alfred, why don’t you join us?
G
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Did you get anywhere with your search?
I was told by a couple of brokers that there is only one insurance company that will insure Home Inspectors right now (August 2021) in Canada.
That company is Tottens Group. I had a local broker take care of it all, surprisingly the rates were reasonable considering they are the only option, hopefully it stays that way.
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Do you mind sharing how much? I have my insurance with HUB.
I believe it is appropriately $4500 without looking at the paperwork directly. E&O and G/L package.
Where are you located? That’s about the same amount I pay.
Airdrie Alberta. 
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I’ve been taking care of insurance for the Assoiation I founded, first as a Chapter and then officially recognized by the Québec Real Estate Board Since 2007, I’ve been attempting to get E&O insurance for all InterNACHI inspectors across Canada, the whole without much success! I even went to Lloyd’s in London to negotiate with interested parties in 2017! The problem in Canada is that almost every jurisdiction, i,e, province, requires a specific licence.
As well, we have 2 types of law, Common Law everywhere but Québec, where there is a France-inspired “Civil Code”! Add to that what insurer’s have been going through recently (natural disasters, Covid, Ukraine, etc. and they are not in a mood to take more than they want in terms of risk! And just to add a little gas to the fire, we have been “negotiating” with the Québec Government for the last 2.5 years regarding inspector legislation! This legislation, now law, will require PERSONAL & PERPETUAL responsibility for practically every act an inspector engages in during the inspection of a residential property! This is unique and unheard of in the World!
So, on balance, you. can imagine what insurers are / will propose, if anything. Some current premiums are now $10,000 CDN a year ($2Million aggregate).
There is NO solution except the Government changing its position! Otherwise, a lot of inspectors will leave the profession and do “something else” with less risk!
Stay tuned…
G
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Thanks Gil, you summed up all of my concerns into a nutshell right there!