There is no single Professional Indemnity limit suitable for every architect or architectural practice.

The appropriate limit can be influenced by:

• Registration requirements
• Client contracts
• Tender requirements
• Project exposures
• Professional services
• Potential severity of a claim

What factors should be considered? #

These can include:

• Project size and complexity
• Current and previous project values
• Annual professional fees
• Client types
• Residential, commercial, government or infrastructure work
• The architect’s role on the project
• Contract administration
• Project management
• Consultant coordination
• Design and construct involvement
• Potential rectification costs
• Potential delay losses
• Defence costs
• Aggregate limits
• Reinstatements
• Excesses

A contractual or regulatory minimum should not automatically be treated as the appropriate overall limit for the practice.

Contracts can also require Professional Indemnity Insurance to remain in place for a period after the work has been completed.

Because Professional Indemnity Insurance is generally claims-made, previous work and continuity of cover should be considered before reducing or changing insurance.

Webber Insurance has a specialist facility for Architects.

Contact our team if you would like us to review a Professional Indemnity limit against your projects and contractual requirements.