Professional indemnity Insurance

Question 1

Professional Indemnity insurance provides cover for…

Answer 1

legal costs and expenses incurred in your defence as well as any damages or costs that may be awarded if you’re alledged to have provided inadequate advice, services or designs to your client.

Question 2

Registered Architects are required to hold current PI insurance by..

Answer 2

The NSW Architects Code of Professional Conduct, monitored by the Board of Architects

Question 3

The ‘insuring clause’ describes…

Answer 3

What, who and how much is covered under the policy

Question 4

Limit of indemnity

Answer 4

Limit of the insurer’s liability ie the most they will pay out for one claim

Question 5

Limited retroactive cover

Answer 5

Cover will be given on and after the specified date

Question 6

Unlimited retroactive cover

Answer 6

Cover is provided irrespective of when the acts, errors or omissions which gave rise to the claim occurred

Question 7

Common policy exclusions from PI…

Answer 7

• the Architect falling below the standard of care etc defined by what you agreed to under the contract
• asbestos : don’t engage the hazmat consultant
• non-conforming building products
• refund of fees (commercial matter)
• those outside jurisdiction
• Claims and circumstances known at inception

Question 8

When to hold PI insurance

Answer 8

During any period you are practicing and for a period after

Question 9

When to notify your insurer?

Answer 9

• check policy
• when you receive a claim alleging a breach
• when you become aware of circumstances that may result in a claim
• when there is a suggestion/need to change your contract with your client