Arkansas requires licensed home inspectors to carry E&O (professional liability) insurance
The new requirement includes a minimum coverage limit of $100,000, signaling a shift toward insurance that better matches the actual risks of home inspection work.
Licensed home inspectors in Arkansas are now required to carry more specialized insurance. The state has replaced the former general liability requirement with a mandate for either professional liability insurance or errors and omissions (E&O) coverage, subject to approval by the Arkansas State Insurance Department.
The new requirement includes a minimum coverage limit of $100,000, signaling a shift toward insurance that better matches the actual risks of home inspection work.
In the past, inspectors only needed general liability insurance. Now they must carry coverage that specifically protects against the legal and financial exposures tied to their professional services.
E&O coverage protects inspectors from the problems that happen in real life. Maybe something was missed in a crawlspace, maybe a report note was unclear, or maybe a buyer misunderstood what the inspection covered. General liability insurance does not help in those situations because it was never designed to cover professional mistakes. E&O insurance is. It lines up with the actual risks inspectors face every day.
Clients benefit from it too. When buyers know their inspector carries the right type of insurance, it increases confidence in the inspection process. They feel more secure hiring someone who is properly covered if a serious dispute comes up.
This requirement also keeps things fair. Every licensed inspector has to meet the same standard, which helps maintain credibility across the profession. Over time, it encourages better practices, stronger businesses, and a more professional industry overall.
Mandatory E&O insurance is not a burden. It is a practical move that protects inspectors, reassures clients, and pushes the home inspection industry in the right direction.