The appropriate level of cover depends on several factors, including the types of inspections you carry out, the frequency and complexity of your work, and any regulatory requirements or association standards that apply. 

In Queensland, certain types of inspections require professional indemnity insurance of $1,000,000 cover. More information can be found here.

In Victoria, building inspectors need to be licensed and meet the VBA’s insurance requirements. This cover is either:

• $1,500,000 when defence costs are included in the limit of indemnity; or
• $1,000,000 if defence costs are in addition to the limit of indemnity

Other states currently do not have mandatory insurance requirements for building inspectors. While not always mandatory, many Professional Associations and clients expect building inspectors to hold at least $1,000,000 – $2,000,000 of professional indemnity cover.