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Watch employer's insurance to avoid personal liability minefield

By: Series: Architects' Journal ; 16(213) 26 April 2001, 48(1)Publication details: 2001Subject(s): Summary: Discusses the case of "Merrett v Babb", in which a surveyor, Babb, conducted a valuation report on behalf of his employer for a building society which related to a house for which Merrett wanted a mortgage. When Babb's employer became bankrupt and the firm's professional indemnity insurance was stopped, Babb was held personally liable to Merrett for incorrectly valuing the house. The case shows that whilst employers will usually be liable for their employees' actions, it is important for surveyors who often give important advice, to ensure they are covered personally by their employer's insurance and to consider personal insurance if this protection ends.
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Journal article London Journal article ABS64037 (Browse shelf(Opens below)) 1 Available 112618-1001

Discusses the case of "Merrett v Babb", in which a surveyor, Babb, conducted a valuation report on behalf of his employer for a building society which related to a house for which Merrett wanted a mortgage. When Babb's employer became bankrupt and the firm's professional indemnity insurance was stopped, Babb was held personally liable to Merrett for incorrectly valuing the house. The case shows that whilst employers will usually be liable for their employees' actions, it is important for surveyors who often give important advice, to ensure they are covered personally by their employer's insurance and to consider personal insurance if this protection ends.