Professional Indemnity claims against Building Inspectors can arise when a client alleges that an inspection or report failed to identify an issue that should reasonably have been detected or communicated.

Common allegations can include:

• Failure to identify significant building defects
• Failure to identify visible signs of water damage or moisture issues
• Failure to identify pest or termite damage where this forms part of the agreed inspection
• Inaccurate, incomplete or unclear inspection reports
• Failure to adequately explain the limitations of an inspection
• Inadequate photographs or supporting documentation
• Disputes about whether a particular area or issue was included within the agreed scope
• Alleged negligence or misrepresentation following a property purchase
• Failure to recommend further specialist investigation where appropriate

A claim can arise even where the inspector believes the inspection was completed correctly.

For example, a purchaser may discover a defect after settlement and allege that it should have been identified during the pre-purchase inspection. The Building Inspector may then need to demonstrate the agreed scope of work, what could reasonably be inspected at the time and what was recorded in the report.

Professional Indemnity Insurance may provide cover for defence costs and insured liabilities arising from these allegations, subject to the policy terms, conditions and exclusions.

If you receive a complaint, demand or allegation that could result in a claim, contact us as soon as possible rather than attempting to resolve the matter yourself.