Why architects need professional indemnity insurance

These days, nearly every profession runs the risk of being sued by a disgruntled employee or a dissatisfied client or business associate. This is why there are so many different kinds of insurance policy available to cover the specific needs and legal risks of each line of work.

An illustrative example of this is professional indemnity cover for architects and architectural technicians. As well as the daily risks involved with the profession, architects are also subject to legislation, with some professional trade bodies requiring their members to have at least a minimum level of cover.

Who needs cover?

There are certain levels of risk associated with different types of architectural jobs. For example:

• Town planning – low risk
• Feasibility studies – low risk
• New build architectural work – higher risk
• Condition surveys – higher risk

Typical examples of professional indemnity claims include failure to request planning permission (potential settlement: up to £9,000); negligent design (up to £75,000); insufficient supervision; failure to accurately specify materials (up to £500,000).

Without comprehensive professional indemnity cover – including public liability – your architecture business could be left facing crippling legal costs and expenses.

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