surveyors professional indemnity insurance
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As a chartered surveyor, you understand that there isn’t much room for error in your work. You’re also aware that RICS Professional Indemnity Insurance for Quantity Surveyors is essential in the event that a mistake is made and the margins are reduced to nil. Precision is, of course, an important component of the job for surveyors. This is because sloppy measurements, ambiguous valuations, slight errors, and other oversights can cause serious problems for clients. As well as for you.

How much does it cost?

For a multi-discipline firm, rates for this insurance typically vary from 1% to 3% of fee income, depending on the standard risk variables and market competition. However, depending on the work done, the claim history, and other factors, rates may be higher. For fresh start-up businesses with no history or legacy to insure, rates are reduced.

You should also keep in mind that different insurers have different minimum premiums. The insurance company’s starting point for insuring risk is the minimum premium, which might vary greatly. For example, depending on the insurer, a minimum premium for an RICS member firm may be £500 or £1,500.

Professional indemnity insurance should not be ‘commodity-based only on price. Professional indemnity is commercial insurance, so coverage disputes might happen no matter how good the policy wording is. To get solid guidance, consult a qualified broker.

Getting a professional indemnity insurance quote

RICS advises all members to get professional indemnity insurance advice from a specialised broker, and practically all firms do so. A broker lowers premiums while also providing crucial advice and help during the insurance period, particularly when it comes to claims. You may also read Why You Need An Insurance Broker in our guide.

How is the premium calculated?

An RICS firm’s rating, or any professional indemnity risk, is a complicated process. Underwriters must be highly skilled and have access to a large quantity of data in order to generate a quote that appropriately reflects the risk they are pricing. Premiums are determined by a variety of factors, including:

  • Size of the firm (fee income)
  • Type of work being undertaken
  • Claims history
  • Number of partners or directors and staff ratios
  • Experience

The underwriter will need a fully completed proposal form to analyse the risk, which they will carefully consider. They will also look at the company’s website as well as dig into the company’s history, including Companies House and any online reviews.

The marketplace for Chartered Surveyors professional indemnity insurance for quality surveyors

The PI insurance market has stiffened since 2020, which is a normal part of the global insurance market cycle. This is due to claims outnumbering premium income, but COVID has only exacerbated the market’s woes. The market is currently exhibiting symptoms of softening.’

The premium income from professional indemnity insurance for the profession is expected to be in the neighbourhood of £ 100 million. The 10,000+ enterprises that operate in the UK pay for this. Firms range in size from lone practitioners to multibillion-dollar worldwide corporations.

Brokers dominate market distribution, arranging PII on behalf of almost all RICS member businesses, with just a tiny number of firms arranging cover directly with insurers. You’ll find the good, bad, and ugly in any market, so if you want some sound advice on which insurance is ideal for your company, please contact us at any time.

The insurance market for the property sector has been considered ‘challenging’ since 2019. Premiums have risen, compliant coverage has become more difficult to come by, and valuation surveyors have been particularly hard hit. Our Guide to the Hard Insurance Market has further information about the hard insurance market (and how to minimise its impact!).

Who are the main insurers?

The surveyors PI market is now represented by roughly 30 insurers. Most RICS firms benefit from robust competition and a variety of options as a result of this. When a company engages in higher-risk activities, such as surveying and appraisal, the number of insurers available drops dramatically. Most insurance firms will only accept inquiries from brokers who are part of their network. Many of the leading insurance providers working in the surveyors’ professional indemnity insurance market are available to us.

What is the assigned risks pool?

The Royal Institute of Chartered Surveyors established the Assigned Risks Pool (ARP) to provide temporary cover for their members’ firms that are unable to get professional indemnity insurance on the open market. A company’s inability to obtain PI insurance could be due to a number of factors. It’s usually because they’ve become a ‘distressed risk’ as a result of claims issues, and no insurer wants to insure them.

We help accounting businesses that have found it essential to enter the ARP and are now trying to return to the open market to get professional indemnity insurance.

Creating the right Impression

The way you market your company to insurers is more essential than you might realise. It will affect how a prospective insurer perceives your company, and if the material is incorrect, it may affect both their judgement and the rate they give.

Simply put, they’re weighing whether or not your company poses a risk to them. Ensure that all information, including essential promotional items such as a corporate brochure and website details, is clearly okay.

How much cover do I need?

RICS rules require the following minimum levels of cover, based on the firm’s fee income:

  • £ 100,000 or less                 = £ 250,000 limit of indemnity
  • £ 100,001 to £ 200,000       = £ 500,000 limit of indemnity
  • Over £ 200,000                   = £ 1,000,000 limit of indemnity

You can also read our guidance note, Your Limit of Indemnity, which tells you about other factors you need to consider in addition to the mandatory requirements.

What work is considered high-risk?

All professional employment entails some danger, and the risk in the surveying industry varies greatly based on the sector in which you work. The following list illustrates where the bulk of professional indemnity claims in your field originate:

  • Low-Risk Quantity surveying, estate agency and lettings, planning, and development.
  • Medium-Risk Building surveys, commercial property management, rent reviews, lease renewals, and architectural design.
  • High-Risk Project management, residential surveys and valuations, and commercial surveys and valuations.

Why do Quantity Surveyors need Professional Indemnity Insurance?

Quantity surveyor duties typically include:

  • Conducting feasibility studies to estimate materials, time and labour costs
  • Preparing, negotiating and analysing costs for tenders and contracts
  • Advising on a range of legal and contractual issues
  • Valuing completed projects and arranging for payment
  • Preparing tender and contract documents
  • Providing advice on contractual claims
  • Analysing outcomes and writing detailed progress reports;
  • Maintaining awareness of the different building contracts in current use
  • Understanding the implications of health and safety regulations.

Quantity surveyors’ main responsibilities are to design costs for construction projects. Any faults or errors they make while fulfilling their professional obligations may result in a claim. Professional Indemnity Insurance protects them from claims made by their clients by covering legal fees and damages.

How much RICS professional indemnity insurance for quantity surveyors do you need?

RICS also has an opinion on how much RICS PI insurance you need. It establishes minimum standards.

Remember that certain activities will boost your ‘risk profile,’ affecting whether or not you require additional coverage, such as working with asbestos, performing lending valuations, or managing building projects.

RICS also recommends that PI coverage be in the form of ‘anyone claim.’ That is, if you purchase £250,000 in coverage, your insurer will pay damages up to that amount for each claim made against you throughout the insurance period. Legal fees are also paid separately for each claim, up to the same sum.

Overall, RICS has a lot to say about the types of professional indemnity insurance that surveyors should have. It also wants you to buy coverage from one of the RICS-accredited insurers.

If the worst happens and a claim is, there’s no point in waiting to learn the truth. You must deal with it—and as soon as possible.

Rather than wasting time, effort, and money attempting to figure things out on your own, it’s far preferable to enlist the help of your RICS PI insurance. RICS recognises this, which is why it requires you to have it.

Policy Features

#1. Price

Turnover determines PI premiums, while the number of employees determines PL rates. A minimum premium is by all insurers.

We believe we have negotiated very competitive pricing for this type of insurance, and we will continue to monitor market premium levels to ensure that this is the case.

Due to variable stamp duty rates, premiums vary by state, but our minimum Total Premiums for Professional Indemnity start at $602. (incl. GST).

#2. Purpose

Professional Indemnity (PI) insurance is required by law and should be carried at all times for your personal protection. If the services you offer to a customer result in a claim against that client, the client will most likely file a claim against the provider. In the event that this happens, PI insurance will cover you.

#3. Convenience

The Insurance application procedure takes an average of 5 minutes to complete. In most situations, your application will be approved promptly online, and you will be able to print your Confirmation of Insurance to demonstrate that you have the necessary coverage It’s that simple!! For your records, all other papers, such as your tax invoice, policy schedule, and terminology, will be sent directly to you.

#4. Renewal

You will receive a renewal reminder email around one month prior to your policy’s renewal date, along with a link that will allow you to evaluate your previous year’s coverage and renew the policy even faster!


Do surveyors need insurance?

In general, most chartered surveyors will require professional indemnity (PI) insurance certain organizations and memberships will also make PI cover mandatory too, often at a specific level or amount of coverage.

What does indemnity insurance cover mean?

Indemnity insurance is a type of insurance policy where the insurance company guarantees compensation for losses or damages sustained by a policyholder. Indemnity insurance is designed to protect professionals and business owners when found to be at fault for a specific event such as misjudgment.

Who needs professional indemnity?

You are likely to need professional indemnity insurance if: You provide advice or professional services to your clients (including consulting or contracting) You provide designs to your clients (such as working as an architect or design engineer)

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