In Alberta, to become licensed for a home inspection business you need to take a mock inspection test, provide proof of $10,000 surety bond, Provide certification of education(Internachi), Provide a Police Check and Proof of E&O/ Liability insurance.
Once I received certification from Internachi, I did the mock inspection in late February and passed. I needed the surety bond because i don’t have the 10 thousand hiding underneath the mattress but the insurance agant said i needed the insurance first.
In Alberta they said the minimum premium cost for E&O/ Liability insurance would be $4,500. Now I was taken back by how expensive that was, but felt I needed it to start working. I knew it would probably be even more for me because I was a brand new inspector.
I gave the insurance agant all my info. She asked for a copy of the contract i was going to use for customers, my resume and my certificate from Internachi. I then recieved an email from her about a week later asking if i “had 5 years of Bon afide Home Inspection Experience?”
She then explained most insurance companies wouldn’t even consider coverage for me without 5 years experience. So now I’m thinking having my own business is out of the question and i might have to send resumes to all the local home inspectors in hopes that one of them is hiring.
Any advice would be helpful and much appreciated. I’m also curious what the requirements are in other provinces and states for getting licensed?
Alberta and BC are the only provinces that require licensing. Something don’t seem right. They typically may ask something like if you have a background in construction, etc., related to the home inspection industry. However, you don’t need 5 years home inspection experience to get insurance. Who did you talk to for insurance?
Yeah, it seemed funny when she said the insurance companies were asking if i had “5 years of Bon afide Home Inspection experience”. I was thinking how could I get experience when I don’t have a license and how could I get a license when I don’t have experience?
Anyways, she was a local insurance agent in Edmonton that applied to Totten Insurance on my behalf. Apparently they are one of the few companies that cover home Inspectors in Canada. They are based out of Toronto.
These guys will set you up @scroswell , ask for Chris Mahoney.
Insurance was hard to get a couple of years ago, I got the same run around for 12 weeks until speaking with Chris, super helpful and one of few agents that know what the industry is like.
You were probably talking to Hub insurance. That $4500 was that they quoted me 8 years ago. The third year in business on my own I went self insured. What these insurance companies and licensing bureaucrats are setting up for liability is imho ridiculous. I am glad I am now retired. In 8 years I paid out one claim because my ozone machine ruined a set of high end natural rubber bike tires ($300) and I replaced two GFCIs that failed during an inspection that could have caused trouble.