Joined: 06/19/2014 12:48 AM EDT
Location: Carmel, IN
See how over $1 million has been saved for home inspectors already by going to www.RWSinsurance.com to get a free quote!
RWS Insurance Services has saved home inspectors nearly $1 million already on their Professional Liability Insurance and we have reduced our deductible to $3500 as of June 1st, 2022.
Question we had from an inspector: "A client asked for a copy of my Insurance...should I give it to them? Should I cancel the inspection?"
Answer By P. Nathan Thornberry of RWS Insurance Services, LLC: YES!!!! (Give them the insurance, book the inspection!)
I say "new answer" because it has long been a talking point amongst inspectors that a client asking for a copy of your insurance before they have even had an inspection is someone that has a high likelihood of causing you grief. This, as it turns out, is untrue. This is one of those bad myths in home inspection that comes from a perfectly logical over analysis of a scenario. Is it logical to think that someone would be more likely to ask for insurance if they had a plan to utilize it at some point? Yes, that does make some sense. Is it logical to think that someone who is aware such a policy exists knows such because they have been involved in a bad situation before (potentially as a plaintiff against a home inspector)? Yes, that is also logical.
Not all things that can be justified with logic hold true and in this case the logical assumptions are demonstrably false.
For the last several years we have encouraged clients to start answering to any requests from a potential client for insurance in the affirmative and send them a copy of their insurance right away. The results were exceptionally clear and proved to be zero net increase in claims. This was not a small sampling either, this was thousands of inspectors in every market and over a period of several years.
In fact, in all that time, we did not have a single instance of a client asking for insurance prior to booking an inspection that resulted in a claim.
Since we have established there is no disadvantage to sharing your insurance information, Is there an Advantage to sending out a copy of your Insurance to a prospective client that asks?
This wasn't something we could measure quite so accurately as the potential increase in liability, but it certainly seems that saying "yes" when a client asks will yield better results than telling them "no". Another advantage is that you don't fire a potentially great client (and future referral source) before they have a chance to utilize your services over something so trivial as showing them a copy of your insurance plan. It is immeasurable unfortunately but it is almost a certainty that many have shared their experience that an inspector was seemingly "shady" when they refused to prove they were insured and even cancelled their inspection.
If you really want to impress a client, always use this script when you are asked for proof of Insurance:
"It sounds like you did your homework on home inspection! I am going to send you proof of not just our General Liability policy but our Errors and Omissions as well, both with $3 million in overall coverage. If you are shopping inspectors today make sure not to just ask for a copy of their policy but for policy limits as well. Some have limits that are too low and you need to make sure they have at least $1 million per occurrence. I wish more home buyers were as informed as you!"
Claim your $3 million policy at a fraction of what you currently pay by applying at www.RWSInsurance.com