Professional Indemnity Insurance can respond to certain claims alleging that a Building Inspector’s professional services, report or advice caused financial loss. Cover depends on the services accepted by the insurer and the policy wording.

What allegations can arise? #

Examples include:

• Failure to identify a defect or visible sign of damage.
• Inadequate inspection.
• Inaccurate or unclear reporting.
• Incorrect advice.
• Disagreement about the inspection scope.
• A client relying on the report when purchasing property.

A missed defect does not automatically establish liability. The scope, access available, engagement terms, report wording, professional duty and evidence all matter.

Can defence costs be covered? #

Professional Indemnity Insurance may cover certain legal costs associated with defending an insured claim. Defence costs may reduce the policy limit or apply in addition, depending on the wording.

What if there is only a complaint? #

Tell Webber Insurance if a complaint or circumstance could reasonably develop into a claim. Professional Indemnity Insurance is generally claims-made, so notification timing can be important.

Preserve the engagement agreement, inspection notes, photographs, report, correspondence and details of any access limitations.

Is Public Liability also needed? #

Professional Indemnity focuses on liability arising from insured professional services. Accidental injury or property damage during an inspection may instead require Public Liability Insurance.

The policies should be considered together because they address different exposures.