Inspection Bureau Insurance Policy Information
Inspection Bureau Insurance. Inspection bureaus evaluate and assess compliance with standards, rules, or regulations relating to a specific type of industry and provide reports of their findings to their clients. Many industries need periodic independent reviews to assure compliance with known standards, rules, or regulations.
The inspection bureau may identify ways for them to improve compliance with standards, rules, or regulations. For example, an inspection may reveal workplace safety issues that need to be brought into compliance with OSHA regulations.
Inspections for insurance purposes, inspections of product safety controls, and inspections of the accuracy of machine calibrations may also be offered.
Regulation of inspectors, certification and educational requirements vary by state.
Inspection bureaus play a role in numerous different fields of industry and commerce, from construction to electricity providers, where they act as independent contractors. These businesses perform vital services and can be extremely successful.
inspection bureaus also, on the other hand, face a range of risks that could threaten their financial future, unless they have taken adequate steps to protect themselves.
How can investing in the right types of inspection bureau insurance help - and what kinds of coverage might be needed? For more information, keep reading.
Inspection bureau insurance protects your compliance assessment and evaluation business from lawsuits with rates as low as $47/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked inspection bureau insurance questions:
- What Is Inspection Bureau Insurance?
- How Much Does Inspection Bureau Insurance Cost?
- Why Do Inspection Bureaus Need Insurance?
- What Type Of Insurance Do Inspection Bureaus Need?
- What Does Inspection Bureau Insurance Cover & Pay For?
What Is Inspection Bureau Insurance?
Inspection Bureau insurance is a type of insurance that covers losses or damages that occur as a result of an inspection of a property. This type of insurance is typically taken out by property inspectors, surveying companies, and other professionals involved in property inspections.
The insurance covers losses or damages caused during the inspection process, such as damage to property or personal injury. The coverage may also include legal fees and expenses incurred as a result of any legal action arising from the inspection.
How Much Does Inspection Bureau Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small inspection bureaus ranges from $47 to $69 per month based on location, size, revenue, claims history and more.
Why Do Inspection Bureaus Need Insurance?
Like companies in any other branch of commerce, inspection bureaus can be confronted with numerous perils that could negatively impact their financial outlook virtually overnight. Inspection bureaus have to consider both universal risks and hazards unique to their industry when they decide what types of insurance they may need.
Your office premises may, for instance, be struck by an act of nature, such as an earthquake, a wildfire, or a serious storm. Both your building and its contents could suffer extensive damage in the process, to the point where you may have to temporarily close your business. Theft, vandalism, and accidents are three further examples of perils that could cause serious property damage.
In addition, a client may allege that you missed something during an inspection. Especially if this alleged professional negligence is associated with serious harm, that could lead to time-consuming and financially-devastating litigation, whether or not your company did anything wrong. An employee may be injured during an inspection, or a client visiting your office could slip on a wet floor.
The list of perils that could cost you more than you can comfortably deal with on your own is almost endless. Thankfully, investing in a comprehensive inspection bureau insurance plan gives businesses in this industry the peace of mind that will allow them to focus on what they do best.
What Type Of Insurance Do Inspection Bureaus Need?
When it comes to insurance, there is no "one-size-fits-all" answer - the types of coverage inspection bureaus should carry depend on factors like the location where the business operates, the field of commerce it serves, the value of its equipment, and even its number of employees.
Because acquiring the right inspection bureau insurance can be complex, consulting a skilled commercial insurance broker who is deeply familiar with your line of work is essential. With that in mind, some of the types of inspection bureaus must have on their radar include:
- Commercial Property - Despite all the measures you take to protect your commercial property from harm, perils like acts of nature, theft, and vandalism remain a threat. This form of insurance covers repair and replacement costs relating to your building as well as its contents.
- Commercial General Liability - To defend yourself against bodily injury or property damage claims filed by third parties, this form of inspection bureau insurance is essential. It helps you cover attorney fees, settlement costs, and other related legal expenses.
- Errors And Omissions - Inspection bureaus also need "E&O insurance", alternatively called professional liability insurance, to manage the costs associated with cases that you failed to carry your professional duties out as agreed. Once again, these policies will cover a significant portion of your legal fees in case of professional liability claims.
- Workers Compensation - Should an employee suffer an occupational injury or illness, this form of insurance shoulders the cost of their medical bills, while also taking care of the income they lose while they are unable to work. Simultaneously, carrying workers' comp reduces the risk that employees will sue you.
- Commercial Auto - Inspection bureaus will certainly rely on multiple professional vehicles to drive to client locations. If such a vehicle is involved in an accident or is stolen, commercial auto insurance shoulders the related costs.
To ensure that you are covered against all major threats, it remains important to talk to a trusted commercial insurance broker. That is because you may need additional forms of inspection bureau insurance coverage, depending on your individual risk profile.
Inspection Bureau's Risks & Exposures
Premises liability exposure may be limited at the firm's office due to lack of public access. If clients visit the premises, they must be confined to designated areas so they cannot view or overhear conversations regarding other clients' proprietary information.
To prevent slips, trips, or falls, all areas accessible to clients must be free of obstacles with floor coverings in good condition. The number of exits must be sufficient and well marked, with backup lighting in case of power failure. Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slips and falls. There should be a disaster plan for unexpected emergencies.
Off-site exposures are extensive as inspectors visit customers' premises and job sites, including access to sensitive areas. They may be involved with customers of the client to understand all aspects of the operations. There must be training, procedures, and policies regarding appropriate off-site conduct and methods of ensuring confidentiality.
Complaints about inspectors should be dealt with quickly. Personal injury liability exposures include allegations of assault, discrimination, and invasion of privacy.
Professional liability exposure is significant from rendering evaluations, opinions, findings, and results as ineffective advice or incorrect testing practices can result in substantial damage to property or injury to people. Customers can suffer financial loss if they must pay fines or cease operations due to a government order because of inspection-related issues.
The hazards increase if the firm fails to conduct thorough background checks to verify employees' training, background, and education, or if error checking procedures are ignored or are inadequate. Documentation must be clear, and testing procedures followed.
Other exposures include allegations of breach of a client's confidentiality or a conflict of interest.
Environmental impairment exposure may be a concern if samples are taken due to the potential for air, ground, or water contamination from the use of chemicals during the testing process. There must be a documented method of disposal for all items tested as well as disposal of solvents or acids used in testing protocols. Any disposal must adhere to all federal and state regulatory requirements.
Workers compensation exposure can be very high from office operations and off-site visits to customers' premises. Work done in the office is done on computers. Potential injuries include eyestrain, neck strain, carpal tunnel syndrome, and similar cumulative trauma injuries that can be reduced with ergonomically designed workstations. Travel may be extensive.
Off-site exposures may include working at construction sites, at heights, on rough terrain, or in isolated areas. Inspectors may be exposed to a variety of chemicals and conditions. Back strains, hernias, and related injury can occur when lifting, obtaining samples or attempting to view processes.
Inspectors may be injured by trips and falls, falling objects, respiratory ailments from inhaling pollutants, dusts, or other allergens, foreign objects in the eye, hearing impairment from noise, assaults, attacks by unrestrained animals, or in vehicle or aviation accidents.
Since inspectors often work alone, injuries may go unnoticed, which can lead to delayed response and delayed first aid. Employees should have appropriate safety gear when working in laboratories or when visiting a job site.
Property exposure is primarily that of an office. Ignition sources include wiring, heating and air conditioning systems, wear, and overheating of equipment. There may be storage of client information in paper form, although these are now often digital instead of paper format. Storage of paper should be in fireproof cabinets.
Fire suppression systems must not damage the papers. If there is a testing laboratory on premises, such as facilities for the taking of samples to assure noise, air, water, or soil acceptability, chemicals must be separated from combustibles and stored in fireproof cabinets. Computers and other electronic equipment may be targets for theft.
Inland marine exposures consist of accounts receivable if the firm offers credit, computers, special floater, and valuable papers and records for contracts, research projects, and clients' information. Inspectors may carry audiovisual equipment, laptop or portable computers, ladders, flashlights, measuring equipment, and scientific instruments with them to job sites.
Computer systems must be backed up regularly and have adequate security features to prevent unauthorized access due to the potential for industrial espionage or by hackers. There may be a bailees exposure if the inspection bureau takes physical custody of customers' goods.
Crime exposure comes from employee dishonesty, including theft of clients' property, and various types of fraud since many businesses are dependent on certification or approval by inspectors. The exposure can be quite serious as inspectors have access to clients' personal and proprietary information.
Potential for theft, particularly industrial espionage, is great. Background checks should be conducted on all employees. Monitoring procedures and securing of all records should be enforced to prevent unauthorized access to client information.
here must be a separation of duties between persons handling deposits and disbursements and reconciling bank statements.
Business auto exposures are moderate as inspectors travel to job sites or high if workers pick up and deliver samples and results. Inspectors may rent vehicles when sites to be inspected are not local.
If vehicles are supplied to employees, there should be written guidelines regarding the personal and permitted use of the vehicle by employees or their family members.
All drivers must have appropriate licenses and acceptable MVRs. Vehicles must be maintained, and records kept in a central location. If samples of hazardous materials are transported, special handling procedures may be required.
What Does Inspection Bureau Insurance Cover & Pay For?
Inspection bureaus can be sued for various reasons, usually related to alleged negligence, errors, or omissions during the inspection process. Insurance can help protect them by providing coverage for legal fees, settlements, and judgments in such lawsuits. Some common reasons inspection bureaus are sued and how insurance can help are:
Negligence: If an inspection bureau is accused of failing to exercise reasonable care and competence during an inspection, they may be sued for negligence. In this case, professional liability insurance (also known as errors and omissions insurance) can help cover the legal costs, settlements, or judgments associated with the lawsuit.
Errors or omissions: If an inspection bureau fails to identify a critical defect or safety issue, they may be sued for errors or omissions. Professional liability insurance can help cover the costs associated with defending against such claims and any damages that may be awarded.
Breach of contract: An inspection bureau may be sued for breach of contract if they fail to fulfill the terms and conditions of their agreement with a client. Commercial general liability insurance can help cover the legal expenses and damages awarded in a breach of contract lawsuit.
Misrepresentation: An inspection bureau may be sued for misrepresentation if they provide false or misleading information during an inspection. Professional liability insurance can help cover the costs associated with defending against such claims and any damages that may be awarded.
Personal injury: If an inspection bureau is sued for causing physical harm or injury to someone during an inspection, commercial general liability insurance can help cover the costs of defending against the lawsuit, as well as any settlements or judgments that may be awarded.
Property damage: An inspection bureau may be sued for causing damage to a property during an inspection. Commercial general liability insurance can help cover the costs of defending against the lawsuit and any damages that may be awarded.
Employee-related claims: If an inspection bureau is sued for wrongful termination, discrimination, or harassment by an employee, employment practices liability insurance can help cover the costs of defending against the lawsuit and any settlements or judgments that may be awarded.
By having the right insurance coverage, inspection bureaus can mitigate the financial risks associated with lawsuits and focus on their core business activities.
Commercial Insurance And Business Industry Classification
- SIC CODE: 4785 Fixed Facilities and Inspection And Weighing Services For Motor Vehicle Transportation, 6411 Insurance Agents, Brokers And Service, 7549 Automotive Services, Except Repair And Carwashes, 9651 Regulation, Licensing, And Inspection Of Miscellaneous Commercial Sectors
- NAICS CODE: 524298 All Other Insurance Related Activities, 541350 Building Inspections Services, 541990 All Other Professional, Scientific and Technical Services, 926140 Regulation of Agricultural Marketing and Commodities, 926150 Regulation, Licensing, and Inspection of Miscellaneous Commercial Sectors
- Suggested Workers Compensation Code(s): 8720 Inspection of Risks for Insurance or Valuation Purposes NOC, 8721 Real Estate Agency - Outside Employees & Collectors, 9410 Municipal, Township, County, or State Employee NOC
4785: Fixed Facilities and Inspection And Weighing Services For Motor Vehicle Transportation
Division E: Transportation, Communications, Electric, Gas, And Sanitary Services | Major Group 47: Transportation Services | Industry Group 478: Miscellaneous Services Incidental To Transportation
4785 Fixed Facilities and Inspection And Weighing Services For Motor Vehicle Transportation: 4785 Fixed Facilities and Inspection and Weighing Services for Motor Vehicle Transportation Establishments primarily engaged in the inspection and weighing of goods in connection with transportation or in the operation of fixed facilities for motor vehicle transportation, such as toll roads, highway bridges, and other fixed facilities, except terminals.
- Cargo checkers and surveyors, marine
- Highway bridges, operation of
- Inspection services connected with transportation
- Toll bridge operation
- Toll roads, operation of
- Tunnel operation, vehicular
- Weighing services connected with transportation
6411: Insurance Agents, Brokers And Service
Division H: Finance, Insurance, And Real Estate | Major Group 64: Insurance Agents, Brokers, And Service | Industry Group 641: Insurance Agents, Brokers, And Service
6411 Insurance Agents, Brokers And Service: Agents primarily representing one or more insurance carriers, or brokers not representing any particular carriers primarily engaged as independent contractors in the sale or placement of insurance contracts with carriers, but not employees of the insurance carriers they represent. This industry also includes independent organizations concerned with insurance services. Establishments engaged in searching real estate titles are classified in Industry 6541.
- Fire Insurance Underwriters' Laboratories
- Fire loss appraisal
- Insurance adjusters
- Insurance advisory services
- Insurance agents
- Insurance brokers
- Insurance claim adjusters, not employed by insurance companies
- Insurance educational services
- Insurance information bureaus
- Insurance inspection and investigation services
- Insurance loss prevention services
- Insurance patrol services
- Insurance professional standards services
- Insurance reporting services
- Insurance research services
- Insurance services
- Life insurance agents
- Medical insurance claims, processing of: contract or fee basis
- Pension and retirement plan consultants
- Policy holders' consulting service
- Rate making organizations, insurance
7549: Automotive Services, Except Repair And Carwashes
Division I: Services | Major Group 75: Automotive Repair, Services, And Parking | Industry Group 754: Automotive Services, Except Repair
7549 Automotive Services, Except Repair And Carwashes: Establishments primarily engaged in furnishing automotive services, except repair and carwashes. Establishments primarily providing automobile driving instructions are classified in Industry 8299.
- Auto emissions testing, without repairs
- Diagnostic centers, automotive
- Emissions testing service, automotive: without repair
- Garages, do-it-yourself
- Inspection service, automotive
- Lubricating service, automotive
- Road service, automotive
- Rust-proofing service, automotive
- Towing service, automotive
- Undercoating service, automotive
- Window tinting, automotive
- Wrecker service (towing), automotive
9641: Regulation Of Agricultural Marketing And Commodities
Division J: Public Administration | Major Group 96: Administration Of Economic Programs | Industry Group 964: Regulation Of Agricultural Marketing And Commodities
9641 Regulation Of Agricultural Marketing And Commodities: Government establishments primarily engaged in planning, administration, and coordination of agricultural programs for production, marketing, and utilization, including related research, educational, and promotional activities. Establishments responsible for regulating and controlling the grading, inspection, and warehousing of agricultural products; the grading and inspection of foods; and the handling of plants and animals are classified here. Government establishments primarily engaged in administration of programs for developing economic data about agriculture and trade in agricultural products are classified in Industry 9611. Government establishments primarily engaged in programs for conservation of agricultural resources are classified in Industry 9512. Government establishments primarily engaged in programs to provide food to people are classified in Industry 9441.
- Agriculture extension services
- Agriculture fair boards-government
- Food inspection agencies-government
- Marketing and consumer services-government
- Regulation and inspection of agricultural products-government/li>
9651: Regulation, Licensing, And Inspection Of Miscellaneous Commercial Sectors
Division J: Public Administration | Major Group 96: Administration Of Economic Programs | Industry Group 965: Regulation, Licensing, And Inspection Of
9651 Regulation, Licensing, And Inspection of Miscellaneous Commercial Sectors: Government establishments primarily engaged in regulation, licensing, and inspection of other commercial sectors, such as retail trade, professional occupations, manufacturing, mining, construction and services. Maintenance of physical standards, regulating hazardous conditions not elsewhere classified, and alcoholic beverage control are classified here. Private establishments primarily engaged in regulation, licensing, and establishment of standards are classified in Services, Division I.
- Alcoholic beverage control boards-government
- Banking regulatory agencies-government
- Bureaus of standards-government
- Inspection for labor standards-government
- Insurance commissions-government
- Labor-management negotiations boards-government
- Licensing and permit for professional occupations-government
- Licensing and permit for retail trade-government
- Minimum wage program administration-government
- Price control agencies-government
- Rent control agencies-government
- Securities regulation commissions
- Wage control agencies-government
Inspection Bureau Insurance - The Bottom Line
To discover the exact types of inspection bureau insurance policies you'll need, how much coverage you should have and the premiums, speak with a reputable broker that is experienced in commercial insurance.
Additional Resources For Professional Services Insurance
Get informed about small business professional services insurance, including Professional liability, aka errors and omissions (E&O insurance), that protects your business against claims that a professional service you provided caused your client financial loss.
- Answering Service
- Armored Car
- Attorney Lawyer
- Background Music Services
- Business Consulting
- Chemical Engineers
- Civil Engineers
- Claims Adjuster
- Commercial Laundries
- Commodity Broker
- Corporate Wellness
- Court Reporter
- Credit Bureaus
- Debt Collection Agency
- Detective Agency
- Diaper Services
- Electrical Engineering
- Environmental Consultant
- Executive, Career & Life Coaching
- Executive Search Firm
- Expert Witness
- Financial Planner
- Financial Services
- Funeral Directors
- HR Consultant
- Inspection Bureaus
- Insurance Agents & Brokers Insurance
- Mediator - Arbitrator
- Medical Billing
- Music, Drama & Dance Therapy
- Office Machine Repair & Maintenance
- Piano Tuners
- Project Management
- Safety Consultants
- Speakers Bureaus
- Tax Preparer
- Temporary Staffing
- Title Abstractors
- Valet Parking
- Specialty Consultants
- Specialty Service Business
The professional services industry, which includes occupations such as lawyers, doctors, accountants, and architects, often deals with sensitive and complex issues that carry a high risk of liability. These professionals are expected to provide their clients with expert advice and guidance, and any mistakes or oversights can result in significant financial consequences for both the client and the professional. This is where insurance comes into play.
Business insurance provides protection against the financial repercussions of potential mistakes or accidents that may occur while providing professional services. For example, a lawyer may make an error in their legal representation that leads to a financial loss for their client. Without insurance, the lawyer would be personally responsible for covering the cost of this loss. Insurance helps to protect professionals from these types of financial burdens and allows them to focus on providing high-quality services to their clients.
In addition to protecting against financial losses, commercial insurance can also provide legal defense for professionals facing legal action as a result of their work. This can be especially important for professionals in high-stress or high-risk fields, such as doctors or architects, who may be at a higher risk of being sued for professional negligence.
Overall, the professional services industry needs insurance to protect against financial losses and legal action, ensuring that professionals can continue to provide high-quality services to their clients without the added stress and burden of potential financial consequences.
Minimum recommended small business insurance coverage: Business Personal Property, Employee Dishonesty, Accounts Receivable, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Professional Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Building, Business Income with Extra Expense, Earthquake, Equipment Breakdown, Flood, Computer Fraud, Forgery, Money and Securities, Special Floater, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.