Insurance Flashcards
What are the Levels of PI required by RICS
<£100k turnover = £250k cover
<£200k turnover = £500k cover
>£200k turnover = £1m cover
What is the maximum level of excess
2.5% of the sum insured OR £10,000 if the sum insured is <£400k
What are the requirements for a PI policy?
- Each and every basis, or aggregate plus unlimited round the reinstatement
- Fully retroactive
- underwritten by RICS approved insurer
- Cover all past and present employees
- Use or better RICS minimum policy wording
What is run off cover?
Insurance after a firm has stopped doing business
What are the RICS requirements related to run off cover in a consumer context?
- Fully retroactive
- 6 years from the cessation of the PI policy
- RICS minimum policy wording
- £1m in all
What are the RICS requirements related to run off cover in a non-consumer context?
- Fully retroactive
- 6 years from the cessation of the PI policy
- RICS minimum policy wording
What is the Run off pool?
If a firm is unable to get cover through other means, they can apply to the RICS Run-Off Pool for cover
What is the assigned risk pool?
When a firm can’t get adequate PI, they can apply to the RICS ARP for cover.
Who underwrites the Assigned Risk Pool?
All RICS Listed Insurers, and it is managed by Miller Insurance Services LLP
What are the requirements to use the Assigned Risk Pool?
- RICS regulated for at least 12 months
- Exhausted all other options
What is the maximum policy the Assigned Risk Pool offers?
- £1m in aggregate with round the clock reinstatement for a 12 month period (depending on info provided)
- for periods longer than 12 months, a firm must reapply
What case law shows the importance of run off cover and PI?
Merrett v Babb - where Babb was held personally responsible for advice given after their company went bankrupt with no ongoing cover
What was the update to PI in 2024
3 new areas added to the minimum wording:
- Fire Safety coverage (above 4 floors)
- External wall assessment
- Cyber security wording
