13 - PII Flashcards
What is PII?
Professional Indemnity Insurance - Insurance policy required by RICS members
Who does PII protect and what for?
clients, surveyors and third parties against negligence claims and claim for damages.
What is the relevant RICS document surrounding PII?
RICS Professional Indemnity Insurance Requirements, Jul 2024
What must all members ensure with regards to PII?
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.
What are the minimum requirements of PII?
£100,000 or less = £250,000
£100,001 - £200,000 = £500,000
£200,001 plus = £1,000,000
What is the maximum level of uninsured excess required by RICS?
Under £10m = £10,000 or 2.5% of sum insured (which ever is higher)
Over £10m = No Limit
What level of Professional Indemnity Insurance does your firm have?
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.
How might a new business determine PII?
Estimate the turnover and adjust in due course accordingly.
Where would it be stated the level of Professional Indemnity Cover that you intend to offer your client?
In the terms of business, which must be agreed before the instruction is undertaken.
What does the RICS say about Pro-Bono Work for Charities or Friends?
You are required to draw up terms of business and maintain Professional Indemnity Insurance.
What is the RICS Requirement for Run-Off Cover once a firm closes?
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.
What does the RICS say about Professional Indemnity Insurance?
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.
