Bholler is the code expert, but the clay liner is not the reason for insulating the liner. It's the clearance of the chimney from the surrounding wood framing that counts. It should be 2" for an interior chimney. 1" for an exterior chimney.
If this is their primary business then they should have done a better job and at least offered the option of installing a block-off plate.
If this is their primary business then they should have done a better job and at least offered the option of installing a block-off plate.