I've been a Realtor for 30+ years and with the prevalant common practice of buyers hiring home inspectors prior to purchasing their homes, buyers proceed with a different confidence knowing a professional more knowledgeable than themselves has inspected the premises.  It changes the financial dynamics of homeownership for buyers, especially first time home buyers.  Good for the consumer.  To limit their financial ability by raising E & O insurance rates for the home inspectors who would remain in the business - which will be passed onto the consumer - would be a giant step backwards into the 1970's.   In what business is blame put on an independent 3rd party for issues that were either not discoverable, inadvertantly missed or arose after services were rendered?  Not all service providers are 100% perfect in performance of duties, but to heap the burden of unlimited liability onto the industry  ~~~ it would kill the home inspection industry and it would be a sad day for consumers not able to pay the excallated prices.