The incidence of inspector professional indemnity insurance notifications and claims is increasing as ‘major’ defects are wrongly reported on as ‘minor’ defects.
The following quick guide will help inspectors better understand how to determine defect types in the different elements of construction.
Major defects: are defects of significant magnitude where rectification has to be carried out in order to avoid unsafe conditions, loss of utility or further deterioration of the property. Major defects need to be reported on using a defect statement. As a guide, when making a defect statement the inspector should always consider:
- what is it;
- where is it;
- what is wrong with it;
- a recommendation for further investigation or advice, where applicable; and
- how quickly should any recommendation be implemented.
Minor defects: Clause 220.127.116.11 of AS 4349.1-2007, indicates that the report shall describe the overall extent of minor defects. Most properties have minor defects, especially if preventive or routine maintenance has not been carried out. Minor defects are normally rectified as part of normal on-going property maintenance.
For a Professional Indemnity and Public Liability quote click here.
Conditions apply for each policy and the information expected from you for a policy to trigger. Coverage may differ based on specific clauses in individual policies. Please ask your broker to explain the additional benefits and exclusions pertaining to your policy.
The information provided is general advice only and does not take account of your personal circumstances or needs. Please refer to our financial services guide which contains details of our services and how we are remunerated.