Business Liability Insurance for Inspection Companies
As the owner of an inspection company, you know that your work comes with various risks. Damage can occur due to an improperly conducted inspection or an incorrect report by your an employee of your company.
A business liability insurance is therefore indispensable to protect you from claims arising from such incidents. This way, you can allow your inspectors to do their work with peace of mind.
What is Business Liability Insurance?
Business liability insurance covers damage caused by your company, employees, or products to third parties. This can include material damage, such as damaging property during an inspection, or personal injury caused by your activities.
For inspection companies, it is crucial to be well insured because mistakes in inspections can have serious consequences.
Depending on your choice, you are insured per claim up to a certain limit, for example, € 2.5 million per incident.
What Does Business Liability Insurance Cover?
This insurance provides coverage for inspection companies, including but not limited to:
- Damage to third-party property: For example, if part of an installation is accidentally damaged during an inspection.
- Personal injury to third parties: For example, if a client is injured due to a mistake made during an inspection
- Environmental damage: For example, if environmental damage occurs during an inspection, such as contamination caused by damaging pipelines.
What Does Business Liability Insurance Not Cover?
Below are some items that are generally not covered:
- Damage to yourself, your business, or services you sell
- Pure financial loss (loss without material damage or injury)
- Damage that you caused intentionally
- Costs for redoing your work because you did not do it correctly
- Damage due to a professional error, such as an incorrect measurement
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Run-Off and Retroactive Coverage
Business Liability Insurance can include optionally coverage for retroactive and run-off risks.
Retroactive Coverage
Retroactive coverage covers damage caused before the start date of the insurance but reported after the start date. This only applies if you were unaware of the damage when taking out the insurance. This coverage is possible for up to 3 years back.
Run-Off Coverage
Run-off coverage covers damage caused during the policy period but reported after the policy end date. This is especially useful when switching or terminating insurance or closing your business, ensuring coverage for claims originating during the insured period.
Care, Custody, and Control Coverage
Protect your business against unexpected costs with Care, Custody, and Control (CCC) Coverage.
As the owner of an inspection company, you don’t want to face surprises. Imagine renting tools for a job and accidentally dropping them. Or you’re inspecting a solar panel system on a customer’s roof, and something goes wrong.
These situations can lead to significant costs. Fortunately, with CCC coverage within your Business Liability Insurance, you can easily cover this risk.
How Much Does Business Liability Insurance Cost?
The cost of your premium depends on various factors, including:
- Your annual turnover
- Your chosen liability limit
- Your business activities and industry
- The number of employees
- The chosen additional coverages
In general, the greater the risk, the higher the premium. For an exact quote, it is advisable to request an offer from an insurer through us.
How Do I Request a Quote for Business Liability Insurance for an Inspection Company?
- Contact us: Call us or use our contact form.
- Risk Assessment: Schedule an intake meeting to identify your risks and needs.
- Application Form: Fill out our application form so that we receive all the necessary information.
- Quote: We request quotes from different insurers, compare them, and provide you with the best options for your situation.
- Choice: Choose the best quote and finalize your policy.
- Policy: Pay your premium and receive your policy.
What Other Insurances Do Inspection Company owners Often Take Out Besides Business Liability Insurance?
In addition to Business Liability Insurance, business owners often take out the following insurances:
What to Do After a Loss?
- Record the date and time of the incident.
- Report the damage as soon as possible.
- Take measures to prevent further damage.
- Keep receipts for the costs of any measures.
- Do not dispose of damaged parts until they have been cleared by the insurer.
- Take clear photos of the damage.
To report a claim or for more information on the next steps, visit our informative claim reporting page. Learn more about reporting claims!
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Frequently Asked Questions
A Business Liability Insurance covers damage that your company accidentally causes to others. This insurance reimburses the damage and the legal costs to the injured party.
If you suffer damage caused by someone else and want to hire a lawyer to recover this damage, it is not covered by Business Liability Insurance. For this, you need Business Legal Expenses Insurance. This insurance covers the costs of legal assistance when you suffer damage caused by someone else and want to recover it.
A Business Liability Insurance protects you against third-party claims but not your damages.
Yes, the insurance premium is generally tax-deductible. The premium is considered a business expense, which means you can deduct the premium from your profits when filing your tax return. However, tax laws vary by country, so it’s advisable to seek professional tax advice to ensure compliance with local regulations.
Yes, business liability insurance also covers temporary workers, interns, family members working in the business, and volunteers.
Yes, if you want to be covered as an entrepreneur against damage that your company, employees, or products cause to third parties, you need a Business Liability Insurance. Personal liability insurance that you have taken out as an individual does not provide coverage for business liability.
You can cancel in writing or by email, observing your notice period.
Yes, however, business liability insurance has limited coverage for environmental damage. It is a standard coverage.
You are insured for:
- Sudden environmental contamination that you have caused. In this case, only the damage to persons caused by the contamination is covered.
- Sudden environmental contamination caused by a defect in your product. In this case, only damage to others’ property is covered.
All other damage is not covered. Think, for example, of damage that occurs gradually, such as from a leaking transformer that pollutes the ground over the years. For these types of risks, you need Environmental Damage Insurance.
Business liability insurance covers damage to property and persons, while professional liability insurance covers financial loss due to professional errors.
No, Business Liability Insurance is not legally required, but many entrepreneurs choose to take one out anyway. Accidents can happen quickly, whether by you, an employee, or your product. This is, of course, unpleasant, and it can sometimes cost a lot of money. With Business Liability Insurance, you are insured against these costs, saving you both money and worries. Sometimes Business Liability Insurance is required, for example, if a supplier, client, or financier demands it for extra security.
