Pre-Inspection Agreement or Contract

In order to be covered by insurance in case of a claim, to help prevent frivolous claims, and to ensure that expectations are properly set before the tank inspection is performed, you must have a pre-inspection agreement or contract.

Not having a signed pre-inspection agreement can make it extremely difficult for the insurance company to defend your claim. No contract means no parameters, and the client can demand almost anything. The cost of such a suit has the potential to make an inspector uninsurable, which can put them out of business.

Since it’s so difficult to limit liability without a contract, most carriers won’t cover claims arising from inspections lacking a signed pre-inspection agreement. Clients signing your contract before you release the inspection report doesn’t cut it. It’s important that all of your clients sign your contract before you start the inspection. That way, you stay compliant with your insurance policy and eligible for its coverage.

The InspectorPro Insurance blog has a wealth of information about insurance, inspection agreements, and other relevant legal topics. We highly recommend reading the material presented on the blog. (https://www.inspectorproinsurance.com/blog/)