ICC Permit Technician Practice Exam

Which type of insurance may building officials purchase to protect themselves from liability due to errors?

1. Indemnification

2. Full indemnification

3. Variable indemnification

4. Errors and omissions

The correct answer is: Errors and omissions

Building officials often purchase errors and omissions insurance as a safeguard against potential liability arising from their professional responsibilities. This specific type of insurance is designed to protect professionals from claims made by clients or third parties, alleging negligence, inadequate work, or errors in judgment while performing their duties. In the context of building officials, who may be involved in reviewing plans, issuing permits, and ensuring compliance with building codes, errors and omissions insurance provides crucial support. If a building official makes an error in their assessment or misses a significant code violation, this insurance can cover the costs of defense against claims as well as any settlements or judgments that may arise from a lawsuit. Navigating complex regulations and standards increases the risk of making mistakes, making this type of coverage particularly relevant for building officials. The other options don't represent the appropriate type of insurance relevant to this context. Indemnification generally refers to a contractual obligation to compensate for harm or loss, rather than a specific insurance policy. Full and variable indemnification also refer to the general concept of indemnification rather than being recognized insurance products tailored to the specific needs of building officials in managing risk related to potential errors in their professional duties.