tel: 0117 325 0560
All firms regulated by the Royal Institute of Chartered Surveyors (RICS) are required to have appropriate Professional Indemnity insurance from a RICS approved insurer. All of these insurers have agreed to meet the requirements of the RICS minimum approved policy wording .
RICS requires all of its members to have a minimum limit of indemnity which is calculated based on the firms turnover.
If your turnover is as follows, you will neeed to comply with these limits-
• Up to £100,000 = £250,000
• Over £100,000 up to £200,000 = £500,000
• Over £200,000 = £1,000,000
Depending on the limit of indemnity, the rules also impose maximum excesses:
• If the limit of indemnity is less than £500,000 the maximum excess should be no greater than 2% of the limit of indemnity or £10,000 whichever is the greater
• If the indemnity limit is over £500,000 then the maximum excess is 2.5%
For members of ARLA (The Association of Residential Letting Agents) the minimum limit of indemnity for annual fee levels are:
• £150,000 where fee income is less than £150,000
• If fee income exceeds £150,000 the minimum limit of indemnity purchased must be £500,000
These are only minimum limits of indemnity and depending on your circumstances, you may wish to increase the limit of indemnity where appropriate.
Surveyors who are involved in valuations for lending purposes have faced many challenges trying to obtain Professional indemnity cover. Following the aftermath of the 2008 economic crash, insurers have incurred some heavy underwriting losses and as a result they have implemented strict guidelines or simply withdrawn from the market. As a result, the pool of insurers available remains very limited.
In a very competitive marketplace, we have access to a very wide panel of reputable and RICS approved insurers. This means we can undertake a full independent review with an end goal of obtaining you very competitive terms. We welcome the opportunity to meet you face to face and even arrange tripartite meetings with underwriters. In the long run, this could save your firm both time and money. In the event you have ceased trading and subject to qualification, we can also look to offer quotations for three or six year block run off insurance.