-
Cautionary Note 35 – Uninsured advice can be costly
July 1, 1998
Based on data collected from inspection of over 35,000 buildings we issue the following advice.
We are aware of a number of cases or claims where the building or pest consultant were uninsured.
This has led to considerable complications and hardship for clients and loss of reputation for their legal advisers. In one case, the uninsured consultant threatened that in the event of successful legal action, they would wind up their business rather than make any payment to their client.
Whilst the cost and inconvenience of any complaint can be high, every consumer should have the protection of the implied “guarantee” provided by indemnity insurance.
Often what appears to be a mistake or omissions by a building consultant turns out to be a misunderstanding that needs careful handling as part of good after sales support by the building consultant.
We think that competence and an established track record are the best guarantee to your client. However, the safety net of a complaint handling process and satisfactory insurance is essential.
If you intend to engage or advise your client to engage a building and pest consultant, we recommend that you investigate the complaint record including:
- the number of legal matters where a substantial payment has been made to a client;
- whether the firm has a specific complaint handling procedure;
- whether the firm has substantial indemnity insurance including the extent of cover.
Please leave a comment below and it will be submitted for approval.