We’ve put together some claims data and general information on Pest Managers and Inspectors collected over the past 3 years.
General conclusion, Professional Indemnity Claims most prone to litigation.
- In recent years the Building and Pest Inspection Profession has become very litigious
- Change in social attitude to litigation – increase the propensity to claim
- General view from claimants – always someone else to blame and at fault
- Claims not settled expediently are more expensive for the following reasons:-
- Aggrieved parties less inclined to accept moderate settlement if they consult a lawyer
- Court cases tend to go against Insurers where delays exist
- Significant burden of legal costs associated with trials
Where are the claims coming from? (statistics sourced from settled claims)
|54%||*Timber Pest Inspection / Termite damage|
|15%||Waterproofing / Decay / Bathroom Leaks|
|12%||Structural Defects (deformation/not built to code)|
|7%||Waterproofing / Decay / Bathroom Leaks|
|6%||*Cracking and Movement|
|4%||Sub-floor (stumps, piers and footings etc.)|
*Termite and Timber Pest Inspections include claims arising from building inspectors.
*The cracking and movement % should increase significantly as there are some claims yet to be settled.
|30%||No Service Agreement|
|32%||Service Agreement sent but NOT acknowledged by client prior to inspection|
|28%||Service Agreement sent and acknowledged by client prior to inspection|
|10%||Other (includes verbally informing at time job booked /terms on reverse side of invoice or sent along with Report|
It must be noted that a higher % of claims were successfully defended if a service agreement was sent.