13 - PII Flashcards

1
Q

What is PII?

A

Professional Indemnity Insurance - Insurance policy required by RICS members

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2
Q

Who does PII protect and what for?

A

clients, surveyors and third parties against negligence claims and claim for damages.

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3
Q

What is the relevant RICS document surrounding PII?

A

RICS Professional Indemnity Insurance Requirements, Jul 2024

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4
Q

What must all members ensure with regards to PII?

A

All members must ensure that an adequate and appropriate level of insurance is in place for each instruction having considered potential liabilities which may exist.

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5
Q

What are the minimum requirements of PII?

A
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6
Q

What are the maximum requirements of PII?

A
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7
Q

What level of Professional Indemnity Insurance does your firm have?

A

My firm has a policy to provide a minimum of at least £5,000,000 per instruction, adjusted depending on the nature of the instruction.

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8
Q

How might a new business determine PII?

A

Estimate the turnover and adjust in due course accordingly.

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9
Q

Where would it be stated the level of Professional Indemnity Cover that you intend to offer your client?

A

In the terms of business, which must be agreed before the instruction is undertaken.

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10
Q

What does the RICS say about Pro-Bono Work for Charities or Friends?

A

You are required to draw up terms of business and maintain Professional Indemnity Insurance.

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11
Q

What is the RICS Requirement for Run-Off Cover once a firm closes?

A

The RICS requires that for consumer cover, a firm maintains at least £1,000,000 of cover for 6 years.

For commercial firms, the firm should decide the appropriate level of cover for 6 years after.

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12
Q

What does the RICS say about Professional Indemnity Insurance?

A

The RICS states that a chartered surveying practice must seek cover from an RICS approved insurer.

It must have a Retroactive Policy, and provide a PII Certificate as part of the annual return to the RICS.

Early notification to insurers is required when a potential claim arises.

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