Architects Professional Indemnity Insurance

Anyone now trading in the UK and using the description of their services as “Architect” must be enrolled with the Architects Registration Board and observe its Code of Conduct, which requires that Architects Professional Indemnity Insurance must be purchased to a minimum level of cover equivalent to (at the very least) the Registration Boards guidelines.

The following minimum limits of indemnity must therefore be maintained:

£250,000 where the gross fee income of the practice in the last financial year was less than £100,000
£500,000 where the gross fee income of the practice in the last financial year was between £100,000 and £200,000
£1,000,000 where the gross fee income of the practice in the last financial year exceeded £200,000

These are minimum limits only, and for many Architects may not be adequate. The Board will revisit and review these limits periodically. It is important to note that Architects should maintain sufficient cover to enable them to meet claims arising from professional practice and bear in mind that claims may arise from personal injury as well as loss, damage, delay and additional costs. Even those Architects with limited turnover or engaged in private works (outside of their main employment) need to maintain at least a minimum level of cover.

All quotations obtained from this site comply with the ARB’s PII minimum level requirements.

Questions & Answers

Do I need cover for private work I do outside my employment?
Yes. Unless you are covered by your employer's PII for your own private work (which is highly unlikely) you will need to buy your own insurance

I only undertake a little work for friends and family without charge
It makes no difference whether as a professional person you provide advice for a fee, for benefits in kind or free of charge – you still have the same duty of care to their client and exposed to the same liabilities and can be sued for negligence

I am employed by a practice so surely I do not have to worry about Professional Indemnity Insurance?
As an employees you need to be aware that if appropriate insurance is not in place then you could be responsible for outstanding liabilities at some time in the future. This potential liability was recently highlighted by the case of Merrett v Babb in the Court of Appeal. It is therefore important for employees to raise the issue with their employers and if necessary as part of your contract of employment

Useful Links

ARCHITECTS REGISTRATION BOARD (ARB)

ROYAL INSTITUTE OF BRITISH ARCHITECTS (RIBA)

ROYAL INCORPORATION OF ARCHITECTS IN SCOTLAND

DUTIES AND LIABILITIES OF CONSTRUCTION PROFESSIONALS

INSURANCE GUIDE FOR PROTECTING SMALL BUSINESSES