**DATE: **November 9, 2007 ** **
**TO: **SPI Industry Representatives ** **
**FROM: **Cliff Weed, Compliance Program Manger
Pesticide Management Division ** **
**RE: **Meeting to Discuss Limiting Liability in Contracts ** **
It has come to the Department’s attention that certain inspection firms have clauses in their contracts with clients that limit their liability to just the cost of the inspection.
The Washington Pesticide Control Act (RCW 15.58.460-465) requires Structural Pest Inspectors to obtain and maintain evidence of financial responsibility in the form of errors and omissions insurance policies, surety bonds, or a combination of both in a total amount of not less than $25,000 or not less than $37,500, depending on the form of financial responsibility, in order to be licensed in this state. The purpose of the financial responsibility requirement is to protect people of the state who do business with structural pest inspectors.
It is the position of the Washington State Department of Agriculture, with advice from the Attorney General’s Office, that when such a clause appears in an executed contract, the financial responsibility of the inspector has fallen below the level required by RCW 15.58.460, and the structural pest inspector is in violation of state law by failing to meet the financial responsibility requirements.
WSDA would like the opportunity to discuss this issue with involved industry members before determining an appropriate course of action. We request your attendance at a meeting that will be held:
December 13, 2007 at 10:30 a.m.
Conference Room 259
2nd Floor, Natural Resources Building
1111 Washington St. SE
Olympia, WA 98504