State boards continue to refine minimum insurance standards to protect consumers and clarify inspector responsibilities. For many inspectors, that means updated proof-of-coverage procedures, clarified policy types, and in some places higher minimum limits. Since home inspection is regulated at the state level, the exact language varies. Your job is to verify what applies to you, document it correctly, and keep certificates current.
McGhee Insurance Agency helps inspectors translate evolving liability insurance regulations into a simple, repeatable compliance routine.
Rules differ by state and are updated periodically. Here are examples that illustrate how requirements are being framed today. Use them as a model for the types of documents and proofs you may need to maintain.
Florida’s licensing portal states that applicants “are required to attest that they have obtained commercial general liability insurance in the amount of $300,000.” In 2025, the Florida Senate analyzed a bill that would require both commercial general liability and errors and omissions coverage, each not less than $300,000, with an effective date of July 1, 2025, if enacted. That analysis signals the direction of policy discussions in the state.
The Texas Real Estate Commission requires inspectors to file a commission-promulgated Certificate of Insurance, signed by the insurance agent, at license issuance and at each renewal. Inspectors must also maintain records to document continuous professional liability coverage for the two-year license period.
North Carolina’s rules require licensed home inspectors to maintain general liability coverage and either minimum net assets, a bond, or errors and omissions insurance as specified by statute. The administrative code also clarifies that the GL policy must cover on-premises inspection activities and include both property damage and bodily injury.
Virginia’s licensing materials indicate that a general liability policy is required, with minimum per-occurrence limits of $250,000. They also describe acceptable forms, such as commercial general liability, where the applicant is listed appropriately.
These examples underscore how liability insurance regulations can differ in scope and proof requirements. McGhee Insurance Agency can verify your state’s current language, track pending changes, and align your policy documents accordingly.
General liability covers third-party bodily injury and property damage arising from accidents, such as a client tripping over your ladder or a fixture damaged during the visit. Errors and omissions, often called professional liability, address allegations tied to your inspection work, such as missed defects, incomplete recommendations, or report wording that a claimant says caused financial loss.
When liability insurance regulations specify one or both, they are addressing different risk categories. Many boards require proof of GL at a specific limit, while proof or continuity of E&O is often verified through a certificate, a board form, or audit records. If your practice includes ancillary services, you may also need to confirm that your E&O form lists those services in scope.
Compliance is a process, not a scramble. Build a rhythm that keeps your license and contracts clean year-round.
Start with your board’s current wording and any published FAQs. Identify exactly what must be shown on the certificate, who must be named, and how renewals are documented. McGhee Insurance Agency can compare that language against your GL and E&O forms and adjust endorsements or certificates so they match what regulators expect.
Most E&O policies are claims-made. Track your retroactive date, reporting windows, and any requirements to maintain continuous coverage between renewals. If your state reviews continuity during renewal, keep copies of certificates and endorsements for the entire licensing period.
Many inspectors juggle board requirements and client contract wording at the same time. Keep a standard board-compliant certificate on file, then add project-specific language for entities that require additional insured or waiver provisions on the GL form. McGhee Insurance Agency can issue both, so you never have to choose between compliance and contract deadlines.
Save board guidance PDFs, renewal reminders, and certificate versions in one folder. Calendar 60-, 30-, and 10-day reminders before license and policy renewals. Treat this as part of your quality system.
Need a fast read on your state’s liability insurance regulations? McGhee Insurance Agency reviews your board’s current rules against your GL and E&O, flags gaps, and delivers corrected certificates and endorsements you can use immediately.
You can avoid most licensing snags with clear documents and consistent terminology.
Some boards require their own certificate format or a board-promulgated form signed by your agent. For example, Texas specifies a TREC certificate at issuance and renewal. If your state has a similar requirement, submit that form and keep a copy with your license file.
The legal name on your license application must match the insured name on your policy and certificate. If you operate through an entity and also use a trade name, list both correctly to prevent refusal at renewal.
When your state looks for continuous E&O coverage, showing a current certificate is not enough. Retain prior certificates and any notices of renewal so you can demonstrate an unbroken timeline if audited. Texas explicitly references maintaining records of professional liability coverage over the preceding license period.
If you perform ancillary services, confirm your E&O declarations and endorsements contemplate those services. Boards focus on license scope; carriers focus on covered services. Your paperwork should satisfy both.
Even experienced inspectors get tripped up by small inconsistencies.
McGhee Insurance Agency monitors liability insurance regulations and updates your compliance checklist before issues become expensive.
You want a clear path: confirm the rule, match the policy, file the right paperwork, and get back to work. McGhee Insurance Agency specializes in helping home inspectors do exactly that.
Staying current with liability insurance regulations does not have to be stressful. McGhee Insurance Agency brings state-level knowledge, carrier access, and practical paperwork support to every engagement. If you want your next renewal to be smooth, your certificates to be accepted on first submission, and your coverage to reflect how you actually work, we are ready to help.
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