Lawsuits... Limiting liability

Originally Posted By: justin watts
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I am thinking about starting my own home inspection business part-time in California, orange county area, but want to cover myself. I have heard that inspectors get sued a lot…


Does anyone have any good advice regarding incorporating, LLC's, and regarding FREA insurance (e and O)... I want to cover my own assets

What is the average number of lawsuits an inspector should be prepared for? I guess a lot depends on the inspector, and reporting systems..

Any advice, I would greatly appreciate it!
![icon_biggrin.gif](upload://iKNGSw3qcRIEmXySa8gItY6Gczg.gif)
Take Care,
Justin Watts


Originally Posted By: Nick Gromicko
This post was automatically imported from our archived forum.



Porter Vally Software’s Lorne Steiner and I spoke a bit about risk management at the Southern California Chapter meeting Sunday night. Our attorney Joe Ferry has done a lot of work in this area too.


One in 50 people, and therefore, one in 50 of your clients... is nuts.


Nick


Originally Posted By: gjohnson
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Justin,


I would advice the you err on the side of caution. The problem wiht the home inspection business is that we are basically inspecting the house at the time we are there. There are times were something could fail that you have no control over or that is not your fault.

Your clients don't know that. They will want recompase for it. My advice is to take the following steps:

Always talk to an attorney to see what you need to do to limit your liablity.
Form some type of Corporation to limit your liablity
and Always use a contract for the inspection.

You don't want to go into busines wiht all of your assetts exposed. Of course the other problem is that a good laywer can blow right through most small corporations and get right to the principals. However, forming a corporations is a great step.


--
Gary (Snicker's) Johnson - Free NACHOS
The NACHI Foundation
Executive Director

301-591-9895

Originally Posted By: ekartal
This post was automatically imported from our archived forum.



Personal assets are suppose to be protected by your E&O insurance.


That’s the only reason I have it.


Erol Kartal


Originally Posted By: gjohnson
This post was automatically imported from our archived forum.



True, the are… “And a burgular entering your house should not be able to sue you for hurting themself by falling on your floor”, but lawsuits happen all the time… You always want to do the best you can to protect yourself.



Gary (Snicker’s) Johnson - Free NACHOS


The NACHI Foundation


Executive Director


301-591-9895