The list of available inspection items (or defects) are found by going to Settings from the dropdown next to your name, in the upper right corner.
When in Settings, click on the Vehicles tab.
Find the Unit Maintenance box and select Maintain DVIR Defect.
Encompass already has a list of defects, but additional items can be added to it. Click Add New to add a new defect.
Enter the name of the inspection item. Make sure that Show in List? is checked—if it is unchecked, it will not be an available inspection item to add to a template. Click Save.