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Professional Liability / Errors & Omissions (E&O) Insurance

Home Inspectors Professional Liability / Errors & Omissions (E&O) Insurance

Available in Arizona, Connecticut, Illinois, Massachusetts, Maryland, North Carolina, New Jersey, New York, Pennsylvania, Texas, and the District of Columbia

Professional Services” means those services the insured is legally qualified to perform for others in the practice of Professional Property Inspection Services.

“Professional Property Inspection Services” means the non-invasive visual examination of the readily accessible installed systems and components of a dwelling, as identified and agreed to in writing by the insured and the insured’s client prior to the inspection process, performed for a fee and a written property inspection report generated.

Professional property inspection services shall also include ancillary professional property inspection services, provided the specific ancillary professional property inspection service is individually identified and agreed to in writing by the insured and the insured’s client prior to the inspection process, performed for a fee and a written property inspection report generated.

Ancillary Professional Property Inspection Services (Sublimit May Apply):

  • 203(k) inspection and consulting.
  • Bulkhead, seawall or dock inspection.
  • Draw inspection.
  • Energy audit inspection.
  • Exterior insulation finishing system and stucco inspection.
  • Green building inspection.
  • Indoor air quality inspection.
  • Infrared thermography inspection.
  • Lead paint inspection.
  • Mold inspection.
  • Pool or spa inspection.
  • Radon inspection.
  • Rodent inspection.
  • Septic or water testing inspection.
  • Unmanned drone inspection; or
  • Wind mitigation inspection.

 

“203(k) Inspection and Consulting” means a non-invasive, visual inspection, including any inspection report generated, of readily accessible installed systems and components of a dwelling, including assistance in completing and filing the required paperwork for ascertaining, for their client, additional mortgage funds to be used to repair, improve, or upgrade a residential dwelling, by an individual who is approved to perform 203(k) inspections by the U.S. Department of Housing and Urban Development (HUD).

“Mold Inspection” means a non-invasive, visual inspection, including any inspection report generated, of readily accessible installed systems and components of a dwelling for the presence of mold (including the gathering of mold samples to be analyzed by an independent, accredited and insured testing laboratory), by an individual who is certified to perform non-invasive visual inspections for the presence of mold, as the result of satisfactory completion of a mold inspection and or sample gathering training program approved by one of the following organizations:

  1. Council-certified Residential Mold Inspector (CRMI);
  2. International Association of Certified Indoor Air Consultants (IAC2);
  3. National Association of Mold Remediators and Inspectors (NAMRI);
  4. National Organization of Remediators and Mold Inspectors (NORMI);
  5. National Association of Mold Professionals (NAMP); and/or
  6. American Council for Accredited Certification (ACAC); or
  7. Another organization that is acceptable to the insurer and is licensed, if required by law.

 

“Radon Inspection” means a non-invasive inspection, including any inspection report generated, of readily accessible areas of a dwelling for the presence of radon by an individual who is certified to perform radon inspecting and testing services as the result of satisfactory completion of a radon inspection training program provided by one of the following organizations:

  1. American Association of Radon Scientists and Technologists, Inc.; or
  2. National Radon Safety Board; or
  3. Another organization that is acceptable to the insurer and is licensed, if required by law.


“Rodent Inspection”
means a non-invasive, visual inspection, including any inspection report generated, of readily accessible areas for a dwelling for the presence of rodents by an individual who is certified to perform rodent inspections as the result of satisfactory completion of a rodent inspection training program provided by one of the following organizations:

  1. International Association of Certified Home Inspectors;
  2. American Society of Home Inspectors; or
  3. Another organization acceptable to the insurer; and are licensed, if required by law.


“Septic or Water Testing inspection”
means a non-invasive inspection, including any inspection report generated, of readily accessible installed septic or water systems and components of a dwelling by an individual who is certified to perform inspections, evaluations or testing of any onsite waste collection or disposal system or sanitary water or well system, as the result of satisfactory completion of a septic or water testing training program provided by one of the following organizations:

  1. International Association of Certified Home Inspectors;
  2. American Society of Home Inspectors; or
  3. Another organization acceptable to the insurer; and are licensed, if required by law.


“Termite and Wood Destroying Insect Inspection”
means a non-invasive, visual inspection, including any inspection report generated, of readily accessible areas of a dwelling for the presence of termites and other wood destroying insects by an individual who is certified to perform termite and wood destroying insect inspections as the result of satisfactory completion of a termite and wood destroying insect training program provided by one of the following organizations:

  1. International Association of Certified Home Inspectors;
  2. American Society of Home Inspectors; or
  3. Another organization acceptable to the insurer; and are licensed, if required by law.

“Unmanned Drone Inspection” means an inspection utilizing an unmanned drone by an individual who complies with Federal Aviation Administration (FAA) operating limitations for small unmanned aircraft systems.

“Wind Mitigation Inspection” means a non-invasive inspection, including any inspection report generated, of readily accessible installed systems and components of a dwelling for wind mitigation by an individual who is certified to perform wind mitigation inspections as the result of satisfactory completion of a wind mitigation inspection training program approved by one of the following organizations:

  1. International Association of Certified Home Inspectors;
  2. American Society of Home Inspectors; or
  3. Another organization acceptable to the insurer; and are licensed, if required by law.

EXCLUDED: Inspections of commercial buildings, unless the commercial building’s tenancy is apartment, condominium/cooperative, retail, warehouse or office;

EXCLUDED: Professional Property Inspection Services performed for or on behalf of any home warranty company or for the purposes of obtaining a home warranty policy or contract.

EXCLUDED: Based upon asbestos, fire retardant treatments, toxic or flammable materials, formaldehyde, including but not limited to “Chinese Drywall”.

EXCLUDED: Based upon any inspection, evaluation or testing of or failure to inspect, evaluate or test:

  • Any underground items, including but not limited to underground storage tanks or other underground indications of their presence, whether abandoned or active;
  • Any recreational facility including but not limited to saunas, steam baths, exercise or athletic areas, playground or other similar equipment and associated accessories, however this exclusion shall not apply to a pool or spa inspection covered on the Schedule;
  • Any docks, bulkheads, portable appliance, alarms, intercoms, speaker systems, radio controlled devices, security systems or lawn irrigation systems, however this exclusion shall not apply to a bulkhead, seawall or dock inspection covered on the Schedule;
  • The proper completion of any construction project

Additional Insureds: 

  • Franchisor, included as an Additional Insured, but solely as respects liability arising out of Professional Services rendered by or on behalf of the Named Insured.
  • Referring real estate agents, real estate brokers, mortgage lenders, or relocation companies are included as an Additional Insured, but solely as respects to Claim Expenses resulting from vicarious liability caused by a Wrongful Act of the Insured in providing Professional Services.


Note:
As a condition of coverage, the insured agrees to obtain a written agreement from each client before the commencement of each professional property inspection service.

PLEASE BE ADVISED:

Please be advised that the above titles, headings, definitions, terms, and descriptions are for illustrative purposes only and are not a contract. Please review the policy and all endorsements for a complete description of coverage, as certain Conditions & Exclusions apply.

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Submission Requirements:

  1. Signed & Dated New Business Property Inspection Professional Liability Application.
  2. Copy of current Department of State license for all licensed professionals.
  3. Copy of your pre-inspection agreement.
  4. Copy of the firm’s current E&O Declarations Page and Retroactive Date Endorsement.
  5. General Liability Insurance Company Name & Expiration Date.
  6. Sample Letterhead.

New York Regulation 194, attached. (For NY Applicants)

Very Important. Coverage cannot be bound until all required documentation and the premium due are received, reviewed, and accepted by Underwriters. Coverage cannot be back-dated, so please ensure your information is submitted on time. All submissions are individually underwritten to determine program eligibility and terms.

Please email or fax completed forms to: newbusiness@plcsi.com

Fax to: (914) 592-6508

Whether you have a question about our company or your policy, we're ready to help!

PLCSI-IM-Home-Inspectors-P1

Attorneys and law firms face several professional liability exposures, including:

Negligence: Failing to meet professional standards or deadlines, including not conducting proper legal research, missing filing deadlines, failing to advise clients appropriately, giving incorrect or incomplete legal advice, and lacking due diligence in reviewing legal documents or contracts.

Conflict of Interest: Representing clients with conflicting interests, such as multiple clients with adverse positions or personal interests that interfere with professional duties, and failure to disclose conflicts or obtain proper consent from all affected parties.

Breach of Confidentiality: Disclosing client confidence or sensitive information without proper authorization and failing to protect client information, especially in the digital age.

Failure to Supervise: Failure to properly supervise associates, paralegals, or other employees leads to errors or omissions and inadequate oversight of subordinates’ work, especially in cases involving complex legal issues.

Fraud or Misrepresentation: Making false representations or failing to disclose material facts that could influence a client’s decision or the case outcome and engaging in fraudulent conduct or misusing client funds.

Incompetence: Taking on cases outside one’s expertise or failing to provide competent legal representation and not staying updated on changes in law or legal procedures relevant to a case.

Client Relations and Communication: Poor communication with clients leads to misunderstandings, dissatisfaction, or loss of trust, as well as failure to provide updates, manage client expectations, or adequately explain legal terms or processes.

Failure to File or Meet Deadlines: Missed filing deadlines, court dates, or failure to comply with procedural requirements can lead to negligence and malpractice claims. In cases involving statutes of limitations, missing deadlines can be particularly problematic.

Litigation Strategy and Decision-making: Poor strategic decisions in litigation include taking unwarranted risks, failing to pursue meritorious claims, and misjudging the likelihood of success or settlement opportunities.

Client Mismanagement: Failing to manage the client’s legal affairs organizationally, resulting in economic loss, penalties, or legal consequences.

Conflict with Third Parties (e.g., opposing counsel, courts): Claims may arise from mishandling interactions with third parties, such as opposing counsel or the courts, which may harm a client’s interests.

Alleged Violation of Ethical Standards: Claims arising from perceived violations of the professional code of ethics, such as misconduct, dishonesty, or breaches of fiduciary duties.

The above exposures highlight the complex nature of legal work and the importance of maintaining high professional standards, staying informed about legal developments, and ensuring effective client communication and management. Legal malpractice claims can arise from minor oversights, so adequate professional liability coverage is crucial for all practicing attorneys.