Ethics - Professional Indemnity Insurance 1 Flashcards
What is Professional Indemnity Insurance mandatory for?
Surveyors working in practice
What is the purpose of Professional Indemnity Insurance?
To protect clients, surveyors and third parties against negligence claims when there is a duty of care breached and a claim for damages arises
What are the details set out in regarding Professional Indemnity Insurance?
RICS “Professional Indemnity Insurance Requirements” w.e.f. 1 April 2022
What must all members ensure regarding Professional Indemnity Insurance?
An adequate and appropriate level of insurance is in place for each instruction having considered potential liabilities which may exist
Who must underwrite all policies regarding Professional Indemnity Insurance?
An RICS approved insurer, as found on the RICS website
What are the minimum indemnity requirements based on turnover of the firm?
£100,000 or less: £250,000
£100,001 to £200,000: £500,000
£200,001 and more: £1,000,000
What do firms have to consider when deciding upon their level of insurance needed?
Their likely risk profile to negligence claims
What should new businesses do regarding their turnover and insurance adjustments?
Estimate the turnover and adjust in due course accordingly
What is the maximum level of uninsured excess required by RICS based on turnover?
Up to £10 million: The greater of 2.5% of the sum insured or £10,000
Over £10 million: No set limit
