Ethics - Professional Indemnity Insurance 2

Question 1

What basis do PII policies work on?

Answer 1

Policies cover claims that are made during the period of insurance regardless of when the negligent act occurred

Question 2

What should be sent to the RICS on an annual basis as part of the firm’s annual return?

Answer 2

The PII certificate

Question 3

What is required when a potential claim arises?

Answer 3

Early notification to firm’s insurers

Question 4

What is the minimum aggregate cover required for consumer claims over a period of six years?

Answer 4

£1,000,000

Question 5

What is needed for ‘pro-bono’ (unpaid) work?

Answer 5

PII cover

Question 6

What is available at a cost for members who cannot arrange cover?

Answer 6

RICS Assigned Risk Pool

Question 7

What does RICS recommend to manage risks associated with professional work?

Answer 7

The use of liability caps

Question 8

What should be made clear regarding third-party reliance?

Answer 8

Advice can only be relied upon by the client named in their terms of engagement