Under what condition can an inspector be held liable under regulatory liability?

An inspector can be held liable under regulatory liability for noncompliance with federal, state, or local regulations because their primary responsibility is to ensure that all inspections and assessments adhere to the established laws and regulations governing asbestos management and safety. This accountability is crucial because the inspector's role is integral in protecting public health and the environment.

When an inspector fails to comply with relevant regulations, it can lead to significant risks, including exposure to asbestos, health hazards for workers and the public, and potential environmental damage. Regulatory bodies expect inspectors to be well-versed in the legal requirements of their field, and failing to meet these can result in penalties, fines, or other legal actions.

The other options do not adequately capture the broad scope of regulatory liability. Personal negligence, for example, does not encompass the failure to adhere to laws, whereas administrative errors alone may not invoke liability unless they result in regulatory breaches. Furthermore, the lack of provided insurance is more of a contractual or business management issue rather than a direct violation of regulations. Hence, noncompliance with regulations stands out as the primary condition under which liability may be imposed.