In the recent decision of Aquamore Finance Pty Ltd v Australis Consulting Pty Ltd t/a Castles Valuers [2026] NSWC 248 (Aquamore), the Court held that where a valuation report did not contain the specific statements required by the valuers professional indemnity policy, in the event of a claim, the insurer is within their rights to deny indemnity.

In Aquamore, Fagan J, interpreted “development” and “prudent lenders” clauses holding the latter did not include wording equivalent, or even substantially to the same effect, as what was required by the policy wording.

These clauses (amongst many other “profession” specific endorsements) are commonly applied to valuers’ professional indemnity policies. The form of these clauses vary from insurer to insurer, often in substantially different terms to what is set out in APIV Standard 7. We discuss these exclusions and the extent of coverage available for valuers in our professional indemnity for valuers fundamentals.

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