New York State Asbestos Investigator Practice Exam

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What is the purpose of errors and omissions insurance for inspectors?

To cover personal damages incurred during inspections
To protect inspectors from misjudgments based on inspections
To provide coverage against physical injuries at the site
To enhance the accuracy of inspections

The correct answer is: To protect inspectors from misjudgments based on inspections

Errors and omissions insurance is designed primarily to protect inspectors from claims that arise from mistakes or oversights in their professional services. This type of insurance covers the financial costs associated with legal defense and any settlements or judgments that may result from claims of negligence or inadequate work. In the context of asbestos inspection, this means that if an inspector fails to identify asbestos in a property or provides incorrect advice based on their findings, the insurance can help cover the costs related to claims made against them. This form of coverage is crucial for professionals who perform inspections, as it allows them to mitigate financial risks associated with the inevitable uncertainties and complexities involved in their assessments. Overall, errors and omissions insurance acts as a safety net, ensuring that inspectors can operate with a degree of assurance that they will be supported in case of errors in their professional practice.