George,
I've been meaning to take a poll here on whether the local AHJs are employed by some Municipality or are 'free' agencies that are recognized and authorized to do inspections.
We have several different Agencies to choose from in many areas of Long Island. I don't know details, but believe they must post bond and carry an appropriate amount of Insurance. I have heard of an Agency getting sued recently, so ut seems that they can be held responsible to some degree. There is a member(s) of one of our local Agencies frequenting the boards here now and then.
Bill
