The policies a home inspection business carries
A home inspector's biggest claim is a missed defect: a buyer finds a problem after closing and says the report should have caught it. That is what errors and omissions insurance is for, and it is the policy Insureon lists first for this trade.
| Policy | Average a month |
|---|---|
| Errors and omissions (professional liability) | $82 |
| General liability | $45 |
| Tools and equipment | $48 |
| Commercial auto | $160 |
| Workers' compensation | $49 |
| Business owner's policy | $74 |
Averages are what Insureon's customers who are home inspectors pay, from Insureon's cost page; most of its customers have fewer than five employees. Across all its small business customers, general liability runs $265 to $3,030 a year.
Claims home inspectors plan for
- A buyer finds a roof leak after closing and says you missed it
- A ladder scuffs a seller's siding
- A panel cover is dropped and damages a floor
- A seller says an appliance broke during testing
Ask your agent, in these words:
- Would my policy pay if a buyer finds a roof leak after closing and says you missed it?
- Would my policy pay if a ladder scuffs a seller's siding?
- Would my policy pay if a panel cover is dropped and damages a floor?
- Would my policy pay if a seller says an appliance broke during testing?
Name the work you sell
A policy covers the work you describe on the application. From the home inspection services list, name each of these and ask whether any is excluded: full inspection, 2,000 sq ft home; 4-point inspection; pre-drywall inspection; yearly checkup; termite inspection; roof inspection; foundation inspection; hvac inspection; radon test; sewer scope; mold air sampling; thermal imaging.
Thermal cameras, meters, ladders and drones are worth listing on the tools policy. On the tools list, the items to list on the policy are handheld thermal camera; drone; combustible gas detector; radon monitor; sewer camera or a partner who has one, and from the starter kit, articulating ladder; flashlight and a headlamp; nonconductive voltage tester; outlet and gfci tester; moisture meter for building materials.
State rules in the license
Many states license home inspectors, and some of those license laws require errors and omissions or general liability insurance. Check your state's home inspector board before your first paid inspection.
Cities, commercial customers and your contracts can still ask for more than any state rule.
Workers' comp and bonds
The SBA says every business with employees must carry workers' compensation, unemployment and disability insurance. Insureon's average for home inspectors is $49 a month, priced per $100 of payroll. A bond protects the state or the customer, not you; Insureon puts its yearly cost at a share of the bond amount:
| Bond amount | Estimated yearly cost |
|---|---|
| $5,000 | $25 to $500 |
| $10,000 | $50 to $1,000 |
| $50,000 | $250 to $5,000 |
Certificates of insurance
Real estate agents, buyers and some lenders ask for proof of insurance before the inspection. Keep a PDF on your phone so you can send it the day they ask.
Sources
- Insureon: Insurance cost for home inspectors, checked October 9, 2026
- Insureon: General liability insurance cost, checked October 9, 2026
- Insureon: Workers' compensation insurance cost, checked October 9, 2026
- Insureon: Surety bond cost, checked October 9, 2026
- SBA: Get business insurance, checked October 9, 2026
Last checked October 9, 2026. This page is general information, not legal or tax advice. Rules change and differ by state and city, so confirm with the agency named before you act.