Clarke Williams Ltd Insurance Brokers
Compare Surveyors Professional Indemnity Insurance
Surveying is one of the oldest professions to hold Professional Indemnity. You are the problem solvers, organisers and calculators, making sure that properties are safe or providing technical services to construction sites. Providing bespoke solutions isn’t always easy– let us do the same for you and review your Professional Indemnity Insurance.
Surveying is a diverse industry involved in land, real estate, infrastructure and construction,but our specialist account managers have experience dealing with various disciplines such as structural surveys, quantity surveying or surveys and valuation for lending.
Why Professional Indemnity Insurance?
Whichever surveying discipline you specialise in, the potential for making a mistake is always there. Unfortunately, we live in a blame culture. Professional indemnity Insurance covers a business for the cost of defending against allegations of professional negligence (such as giving your client incorrect or wrongful advice) and if unsuccessful, the cost of damages awarded against you.
Professional Indemnity Insurance is written on a ‘claims made’ basis, which means that when a claim is received, it’s the current insurer in place that will respond rather than the insurer in place when the negligent act occurred. This is particularly important for surveyors, as errors in the property industry can sometimes take a while to come to the surface.
For example, if a surveyor was insured for a period of 12 months with ABC Insurance, that insurance company would meet the claims that were made during that policy period as a result of any surveying activity which had been undertaken in the past, subject to the terms of the policy. The same would also apply in the next year, for any claims that relate to the previous year of trading. This is particularly important to remember if you change insurers, as you will need to make sure that the policy has a retroactive date so your previous work continues to be covered under the policy.
Clarke Williams can provide cover limits ranging from £250,000 – £10,000,000 depending on your requirements and a surveyors wording will typically include the following extensions:
- Defence costs
- Worldwide cover including USA & Canada if required
- Criminal prosecution defence costs
- Cyber liability
- Cover for previous firms and retired principals as declared
- Awards by Ombudsmen
- Cover for consultants and self-employed staff
- Mitigation costs
- Court attendance compensation
- Cover for loss of documents with no excess applicable
- Representation costs for disciplinary hearings
Call 01732 252 898 or email us today for a comprehensive insurance policy at a competitive price.
The best way for us to understand your business and get the best premium back from the market is for you to complete our proposal form. If you have already completed a proposal form, please feel free to send a copy to email@example.com
Alternatively if you renewal is not due yet, register with us now so that we can contact you nearer the time.
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Not sure what else you need? The below guide should help.
Public and Public Liability Insurance, covers you for any bodily injury or property damage which arises in the course of your day today activities, such as visiting a client’s premise.
Employers’ liability Insurance is a legal requirement for all employers within the UK. The minimum required limit is £5,000,000 although most insurers give £10,000,000 as standard. The policy is designed to protect employees’ who sustain an injury or illness during their normal business activities by providing compensation.
Buildings & Contents Insurance. Cover your computers, equipment and other workplace property such as business records against fire, flood, theft and more so you can have peace of mind that you’re protected against the unexpected.
Business Interruption Insurance. We can help you get back to work after a crisis. Business Interruption can insure you against lost business income and any additional expenditure that you might have incurred following a loss.
Our account managers will arrange Professional Indemnity and Liability policies at a competitive price with comprehensive wordings, which are acceptable to your clients or Professional Body.
As a member of RICS, you have a code of conduct which makes it mandatory to carry adequate PI Insurance.
We have years of experience dealing with RICS surveyors and have detailed some of your Professional Indemnity Insurance requirements:
All wordings must be underwritten on a civil liability basis and the policy must be underwritten by a RICS listed insurer. RICS has compiled a list of approved insurers, these are a mix of insurance companies and Lloyds of London syndicates, all of whom have agreed to provide a minimum level of cover set by RICS to its members. A full list of these can be found on the RICS website.
The policy must also be fully retroactive to cover all previous trading activities. The retroactive date of your policy should be stated as none or since establishment date, with cover provided for past and present employees.
RICS Professional Indemnity Policy Requirements
Limit of Indemnity
So, what limit to buy? RICS recommend the minimum levels of cover. However depending on the activities you undertake, client requests or project sizes it may be prudent to hold a higher Professional Indemnity Limit.
|Last year’s turnover||Minimum level of cover|
|£100,000 or less||£250,000|
|£100,001 to £200,000||£500,000|
|£200,001 or more||£1m|
Professional Indemnity Insurance can sometimes come with high excesses depending on the surveying activities undertaken (for instance S&V or work with Asbestos can attract a high excess). However, there are maximum levels of excess that a RICS regulated firm can carry:
|Limit of indemnity||Maximum uninsured excess|
|Up to and including £500,000||The greater of 2.5% of the sum insured, or £10,000|
|Over £500,000||2.5% of the sum insured|
As Professional Indemnity Insurance policy works on a ‘claims made’ basis, run-off cover comes into effect when the insured stops trading, and covers any claims that relate to previous work carried out by the practice. RICS requires run-off cover for a minimum of six years if your firm ceases to trade.
Still unsure about what you require? RICS has details on their website regarding the minimum standards of PI cover required by their members. See www.rics.org for full details.
Have confidence that Clarke Williams can help your business.
Below is a list of the types of surveying work we have experience in. Insurers will be interested in what type of work any surveying firm is involved in, as each discipline has varying potential for risk:
Building Surveyors – Provide professional advice on property and construction sites, completing building surveys, as well as advising on dilapidations of existing buildings, party wall awards or providing design and development support for new buildings.
Quantity Surveyor – Working on large infrastructure building projects such as HS2 undertaking activities concerned with construction project requirements, costs, subcontractor contracts and their payments and BIM, whether working on their own or as part of a sectional team.
Land Surveyors – Involved in land development mapping including topography, planning and all laws relating to the subdivision of land. Surveyors often struggle to obtain competitive Insurance terms when undertaking setting out, the process of measuring and marking out a full size plan of a building or element of a building on site, as it can be considered high risk. As such Insurers are often hesitant to provide cover due claims emanating from incorrect measurements that then have large repercussions for the building project but we have various markets that can accommodate this surveying discipline.
Hydrographic Surveys – A very niche field mapping rivers, oceans and waterways. Hydrography plays an important role in preparation of navigational information for shipping as well as exploration of marine resources. We’ve helpedHydrographic Surveyors who have undertaken mapping in connecting with fisheries or are involved in the renewable energy sector preparing plans for offshore wind farms.
Residential and Commercial Surveys and Valuations – The main area of activity for many surveying practices, this involves the investigation of a property in order to ascertain its condition and market value. This is considered as high-hazard work. Many insurers are often unable to provide cover for practices that undertake survey and valuation work for lending purposes due to the volume and size of claims seen by the market, especially in times of recession when the housing market bubble has burst leaving banks with overvalued assets when repossessed. Clarke Williams have experience in placing surveyors undertaking S&V work, and have markets based in Lloyds of London who can accommodate these activities.
Planning and Development – The formulation of plans and drawings for construction projects, and the application for planning permission with the local planning office.
Project Management and Coordination – Surveyors are often called upon for large projects where assistance is required in management, administration and control of site on behalf of the client.
Rural surveyors – Concerned with all aspect of rural life from conservation, agriculture, livestock auctioneers and asset management.
Dispute Resolution Surveyor – The role of the surveyor is to resolve disputes including arbitration, adjudication and mediation. Typical activities have been where a surveyor has been brought in to assist with contract claims negotiations regarding time delays, projects that are over budget or subcontractor disagreements.
Auctioneering – The work can be diverse ranging from property to art or even livestock. Auctioneers act on behalf of the seller and are involved in each step of the process, from pre-inspection to final contract signing. The risk is variable depending on what is being auctioned.
"It will never happen to me". Still not convinced? Have a look at the below claims examples for Surveyors:
Negligent Survey Report
A residential survey failed to identify signs of subsidence on the ground floor wall which was adjacent to a large tree. Following the purchase,it transpired that a property required substantial underpinning.
Amount paid: £159,000.
Quantity Surveying Claim
A quantity surveyors undervalued the scope of works required by a contractor, this lead to time delays and additional costs which the client had not budgeted for and certainly didn’t want to pay.
Amount paid: £147,000.
Residential Survey and Valuation
Claims for over-valuation of a property are common. A surveyor was pursued by a lender, trying to recoup losses following a property’s repossession and subsequent sale for a diminished value.
Amount paid: £83,000.
Measured Building Surveys
Errors can happen anywhere. An employee made an error in copying measurements which resulted in the final calculation being inaccurate.
Amount paid: £15,000.
A surveyor was accused of mismanaging a site following time delays and an increase to project costs. Talks broke down, the site ground to a halt and both parties required legal representation.
Amount paid: £123,000.
Clarke Williams Ltd are authorised and regulated by the Financial Conduct Authority under reference 758683. The Financial Conduct Authority’s Register can be accessed through http://www.fca.org.uk/ . We are registered in England and Wales with Companies House under number 10317065. Our registered office address is 194 High Street, Tonbridge, Kent, TN9 1BE