Using subcontracted inspectors does not automatically remove a Building Inspection business’s responsibility to its client. The contractual arrangements, supervision and insurance program should reflect how the services are delivered.

Should subcontracted inspectors have insurance? #

Consider each subcontractor’s:

• Professional Indemnity Insurance.
• Public Liability Insurance.
• Insured activities and policy limits.
• Qualifications, licensing and registration.
• Building inspection experience.

Their policy protects their business and does not automatically replace the principal business’s insurance.

Does experience matter? #

Yes. The specialist Building Inspector facility available through Webber Insurance generally requires at least three years of experience specifically undertaking building inspections.

Broader construction experience alone may not satisfy that underwriting requirement. Other insurers may apply different criteria.

How should subcontracted work be managed? #

The business should have clear systems for:

• Defining the inspection scope.
• Allocating responsibility.
• Setting report and photographic standards.
• Reviewing work and final reports.
• Recording access limitations.
• Handling complaints and potential claims.

Written subcontractor agreements should address responsibilities and insurance requirements.

Must subcontracting be disclosed? #

Tell Webber Insurance about subcontracted inspectors, particularly where they perform a material proportion of the work.

The insurer may ask who performs the inspections, what services are outsourced, how quality is controlled and whether subcontractors maintain their own insurance.