Professional Indemnity Insurance legal requirements.

Tim Toolman

I have recently started my own business which involves the preparation of architectural drawings and planning applications. Once the planning application has been submitted my work is done, in that I don't inspect any works or provide any documentation beyond that during the construction. A separate architect/engineer will be employed at that stage to oversee the work. I am currently looking for cover of PI insurance but I am unclear as to what the legal requirements are regarding insurance. I am not affiliated with any architectural governing bodies like CIAT. Do I need to be a member of such a organisation. Anyway any help or information on this will be greatly received. Thanks in advance.

EDIT: I have a diploma in Architectural Technology, I believe my profession to be classed as an architectural technician.

mickdw

Tim Toolman wrote: »

I have recently started my own business which involves the preparation of architectural drawings and planning applications. Once the planning application has been submitted my work is done, in that I don't inspect any works or provide any documentation beyond that during the construction. A separate architect/engineer will be employed at that stage to oversee the work. I am currently looking for cover of PI insurance but I am unclear as to what the legal requirements are regarding insurance. I am not affiliated with any architectural governing bodies like CIAT. Do I need to be a member of such a organisation. Anyway any help or information on this will be greatly received. Thanks in advance.

There are people who operate designing dwellings and doing planning applications wiyhout insurance cover. This is foolish as they are instances where claims could arise.
Re professional body, I know in my case I have to be a member of the IEI.

muffler

Tim Toolman wrote: »

I am currently looking for cover of PI insurance but I am unclear as to what the legal requirements are regarding insurance.

If you're asking if you are legally obliged to have PI cover then the answer is no. However as pointed out above you would be very foolish not to have it to cover you for "planning work" and the likes.

When looking for cover the proposal form will have to be completed to include all the various types of work that you do so apart from the actual planning issue stuff I assume you will be doing site surveys, construction drawings, land transfer maps etc etc. These need to be itemised on either the proposal form or a covering letter and based on the amount (volume) of work and associated fees the cover will be provided at a certain premium.

If for example you were to include work inspections/certification as part of the daily/weekly duties then the premium would be much higher so you need to be explicit in what you need cover for in order to keep the premium down.

Tim Toolman

Thanks muffler for that, at the moment I am just providing the service for drawings and planning. I don't plan to do construction drawings such as individual working drawings during construction phase. Any required drawings at that stage will be left up to the assigned architect/engineer. My obligation is to meet the requirements of planning and the building regulations. I also don't plan at this stage to do land transfer maps as I don't believe they are worth the hassle insurance wise for me at the moment. It seems that in good practice it is wise to have a PI insurance cover. I am applying at the moment but could not find where it says that you require it specific for architectural technicians.

DOCARCH

muffler wrote: »

If you're asking if you are legally obliged to have PI cover then the answer is no. However as pointed out above you would be very foolish not to have it to cover you for "planning work" and the likes.

+1 on this.

@Tim. It is not unkown for people to be sued over issues related to planning.

I cannot find the statistics/not to hand, but Marsh, one of the main PI insurers (for architects), issued statistics on the main reasons for claims against architects PI insurance. Planning, and mistakes in connection with planning, was pretty high on that list!

wtlltw

Like everyone has stated always have insurance, sadly it seems to be on an upward spiral at the moment. Measured surveys of existing buildings can throw a spanner in the works, especially when it handed over to another consultant. While you may be not responsible for the construction stage of the project, it will be your design that will be scrutinised if issues arise

mickdw

muffler wrote: »

When looking for cover the proposal form will have to be completed to include all the various types of work that you do so apart from the actual planning issue stuff I assume you will be doing site surveys, construction drawings, land transfer maps etc etc. These need to be itemised on either the proposal form or a covering letter and based on the amount (volume) of work and associated fees the cover will be provided at a certain premium.

Ive never seen such detail as that being required on the proposal form. They generally ask percentages of income from architectural, structural, valuations, asbestos related etc. Ive never even thought of giving them specifics such as transfer mapping etc.
Just once they queried the structural aspect and wanted clarification of the type of works I was involved with.

muffler

mickdw wrote: »

Ive never seen such detail as that being required on the proposal form. They generally ask percentages of income from architectural, structural, valuations, asbestos related etc. Ive never even thought of giving them specifics such as transfer mapping etc.
Just once they queried the structural aspect and wanted clarification of the type of works I was involved with.

Your proposal forms are simple. You're an engineer aren't you? :pac:

Nah, seriously, maybe its just my insurers but their forms require me to give a fairly comprehensive (not exhaustive though) list of duties carried out and just like yourself I have been asked for clarification on one or two of the items. One of the points they queried in the past was "property surveys" which I had listed. They wanted clarification if this involved carrying out structural surveys which it didnt of course. I suppose they have to base the premium on the risks involved with various jobs and knowing the insurers they have hard fast stats showing the percentage claims against various tasks.

The percentage fees attributed to the various jobs has to be listed as does sub contract work (taken and given) but Id imagine thats applicable in every case.

Mellor

DOCARCH wrote: »

+1 on this.

@Tim. It is not unkown for people to be sued over issues related to planning.

I cannot find the statistics/not to hand, but Marsh, one of the main PI insurers (for architects), issued statistics on the main reasons for claims against architects PI insurance. Planning, and mistakes in connection with planning, was pretty high on that list!

Claims against or successful claims against?
PI would be handy to have just to deal with the spurious variety.

I'd recommend have PI just to cover yourself, and to deal with any unsubstantiated claims. But out of curiosity, can anybody think of a situation where somebody who prepared a planning application could be held liable?