New License Bond Regulations pertaining to Home Inspectors in Kansas and Georgia

Category: Uncategorized
Published: Mar 11, 2009
According the recently enacted Kansas House Bill 2315 (HB 2315), home inspectors are now required to register with the Home Inspectors Registration Board if they wish to legally operate in the state of Kansas. They are required to submit proof of a fidelity bond of no less than $10,000 to the Board, which will cover dishonesty of the home inspector. Additionally, home inspectors are required to separately submit proof of financial responsibility. This proof can come in the form of a surety bond (license bond, which is a type of commercial bond) for at least $10,000, one that cannot be terminated without at least 30 days advance written notice to the Board. In addition to the surety bond option, home inspectors can meet their proof of financial responsibility requirement with an irrevocable letter or credit (no less than $10,000), or with an escrow account with a minimum balance of $10,000. Additionally, financial responsibility can be demonstrated via an errors and omissions insurance policy.

However, a similar bill was defeated in the state of Georgia. If passed, Georgia Senate Bill 485 (SB 485) would have required home inspectors to be officially licensed, purchase liability insurance for a specific amount that would be determined by regulation, and either purchase a surety bond or maintain no less than $100,000 in net assets.

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Victor Lance is the founder and president of Lance Surety Bond Associates, Inc. He began his career as an officer in the U.S. Marine Corps, serving two combat tours. As president of Lance Surety, he now focuses on educating and assisting small businesses throughout the country with various license and bond requirements. Victor graduated from Villanova University with a degree in Business Administration and holds a Masters in Business Administration (MBA) from the University of Michigan's Ross School of Business.

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