Professional Indemnity Insurance

Question 1

Purpose of PII

Answer 1

Protects clients, surveyors adn 3rd parties against negligence claims when there is a duty of care preached and a claim for damages arises

Question 2

All policies must be…

Answer 2

Underwritten by an RICS approved insurer

Question 3

The current minimum requirements absed on turnover of the firm are:

Answer 3

Firms turnover in preceding year / min level of indemnity required for each and every claim

100,000 or less = 250,000
100,001 to 200,000 = 500,000
200,001 above = 1,000,000

Question 4

The maximum level of uniunsured excess required by RICS is:

Answer 4

Firms turnover in preceding year/ max uninsured excess

up to £10m = greater of 2.5% of the sum insured or 10k
over £10m = no set limit

Question 5

How do RICS know?

Answer 5

Certificate be sent to the RICS on an annual basis as part of the Firms annual return to RICS

Question 6

Whats your firms PII cover?

Answer 6

CBRE currently have a standard base of £5m PI cover for each claim, however we can get up to £100m.

I.e. valuation terms dictate standard base of £20m cover, whereas our

Residential terms only has £1m standard cover as we are only buying and selling property (less services / services lines).