Joined: 04/03/2018 11:51 AM EDT
Location: American Fork, UT
Hi Home Inspection Forum Readers!
Here's a preview of our latest article, which covers the ins and outs of workers' comp for home inspectors.
Several months ago, we were reviewing a home inspector's workers' compensation policy. Unbeknownst to that home inspector, their insurance carrier wasn't familiar with the property inspection industry. Despite their lack of experience in the inspection space, the carrier didn't want to turn the home inspector away. Instead, the insurance company categorized (or grouped) the home inspector in what they perceived to be the closest type of business they already insured: window blind installation.
With a window blind installer's workers' comp policy, the home inspection business lacked coverage for many of the unique risks their employees faced. For example, since there's no need for a window installer to mount a roof, the home inspection company didn't have coverage in case their employees fell off an inspection property's roof. Thus, by pairing up with a workers' compensation provider unfamiliar with their business, the home inspection company's needs were not being met.
What is workers' compensation insurance?
Since 2050 B.C., governments have granted sick and injured laborers payment after workplace accidents. Ancient Greek, Roman, Arab, and Chinese law all dictated precise payments for both bodily impairments and disabilities. Thus, their legislation laid the foundation for the workers' compensation insurance we have today.
Workers' compensation insurance provides employees who suffer from work-related injuries or diseases with access to medical and wage benefits. Unlike general liability (GL) insurance, which covers inspection-related bodily injury and property damage claims for non-employees, workers' compensation looks out for people who work for your company.
By covering job-related injury and illness costs, workers' comp protects both employees and employers. Employees work under less financial risk knowing they're protected on the job. Additionally, employers limit their liability and deter litigation.
Recognizing the need for workers' comp in the home inspection industry, we launched our own workers' compensation insurance program in June 2019. In this article, we go over some of the common questions inspectors do (and should!) ask when shopping for a workers' comp policy. We hope that the information outlined here can help you make an educated workers' comp purchase with us or another provider.