Why professional indemnity cover deserves closer attention

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Why PI Insurance Might Matter More Than You Think

BC Team Co-Founder, by stephen barnes

we talk about professional indemnity insurance a lot. It’s not glamorous. It’s definitely not a quick social post. It’s the quiet promise that sits behind every report, at bc team building consultancy.

In our latest BC Team Podcast installment, co-founder Stephen Barnes sits down with Marketing Director Andy Clow and sets out why PI insurance should be front and centre for clients and surveyors alike, and how our approach is built to protect both.

compliant and fit for purpose.” Stephen Barnes, “pi insurance is our promise to clients that our advice is right

Professional indemnity is not public liability

including advice, some in the market have confused public liability with professional indemnity. public liability deals with physical incidents on site. pi covers the professional output itself.

That is why the scope and quality of the PI policy matters. It is also why exclusions and sub-limits can quietly erode the real protection a client thinks they are buying.

“Most people presume all surveyors’ quotes sit behind adequate PI. They don’t.”

The Problem with Exclusions & Sub-Limits

Stephen highlights two common exclusions that should ring alarm bells:

• Fire – exclusions or low sub-limits on anything from fire doors to compartmentation.
• Basements – widely excluded, yet many UK buildings, especially in London, have them.

what is the real value of the report? Clients rarely see policy documents and may never know the limitations unless they ask, if a firm is not insured to advise on these areas.

Vague Guidance, Real-World Risk

in practice, rics requires “adequate and appropriate” pi cover. stephen is clear that.

A hands-on rule of thumb is proportionality. PI limits need to reflect that exposure, if you are purchasing a £10 million building or running a multi-million pound project.

“Adequate and appropriate PI must be proportionate to the value and risk of the instruction.”

Our Approach at BC Team

Daniel Atkinson at Romero Insurance Brokers, from day one we set out to remove the ambiguity. each year we work closely with our broker.

We Then Do Three Things Internally:

1. 1. Educate the whole team Everyone sees and understands the policy and how it applies to their work.
2. Run a director-led model Two directors on every job. Every output passes both an Admin QA and a Professional QA before it goes to the client as a draft.
3. we review their previous firms’ policies with them. It is an eye-opener. It also helps us explain clearly to clients where gaps often exist in the market, train for the market reality when people join us.

then back it with PI that has no exclusions.”, “we build our business around experienced people and rigorous checks

Personal liability: a note for surveyors

PI is not only a client protection. It safeguards surveyors too. Cases such as Merrett v Babb (2001) underlined the potential for personal liability if a company fails and adequate PI is not in place. We therefore make sure our policy covers the services we deliver, and we build protective clauses into our appointments. No one should ever face the risk of losing a home or livelihood because of a professional mistake.

Questions clients should ask

Stephen recommends one simple addition to every request for proposal:

limitations or sub-limits, “please confirm in writing whether your professional indemnity insurance is subject to any exclusions

respondents must answer it. It creates a level field and lets you compare quotes on substance, if you ask the question.

disclose any PI exclusions or sub-limits. Transparency protects everyone.”, “alongside your fee

What Surveyors Should Do

remember the longer obligations to maintain cover at the stated level, every chartered building surveyor should see and understand their firm’s pi policy. know the limits. know any exclusions. operate within them. if your firm provides services under deed.

“Do not work on assumptions. Ask to see the PI policy & understand it.”

Setting a Higher Standard

transparent disclosure and proportionate limits would raise standards and reduce risk. Until that happens, we believe the industry can do better. clearer guidance.

or to sense-check your current approach, if you would like to talk through pi in the context of your assets or programmes.

Listen to the full discussion on BC Team Podcast: The Building Podcast for hands-on pointers, real examples and the exact wording to include in your next RFP:

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