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)
| Percentage | Claim |
| 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.) |
| 1.5% | Public Liability |
| 0.5% | Asbestos |
*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.
Service Agreement
| Percentage | Service Agreement |
| 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.