The Royal Institute of British Architects (RIBA) is taking a deep dive into the world of professional risk and professional indemnity insurance (PII) in the hopes of addressing what it described as a “worsening crisis” in terms of coverage availability and affordability.
“The spiralling cost and declining level of cover provided by PII policies poses a serious threat to the profession, with smaller practices at serious risk of closure or being forced into the unregulated sector,” asserted RIBA, whose members must hold suitable insurance to cover potential liabilities arising from negligence or breach of contract associated with professional activities.
Part of the “thorough review” is an initial survey among the RIBA membership that will run until July 25. Alongside insurance industry experts, the full study will be led by a RIBA Council task & finish group.
“While the ARB (Architects Registration Board) has proposed some welcome adjustments to support the profession in the short term, we urgently require solutions to manage professional design liability and improve the availability of appropriate insurance cover for architects and consumers,” said RIBA president Simon Allford.
“This study relies on data and evidence from our membership. I therefore urge all practices to take part in this initial survey and share their experiences.”
According to RIBA, most chartered practices and other professionals have been facing either restriction or complete cover exclusion in relation to fire safety since the Grenfell Tower blaze of 2017.
Jennifer Dixon, RIBA Council and board member and chair of the PII task & finish group, noted: “By drawing on the vast experience of members and engaging widely with other industry bodies, this study aims to improve the visibility, understanding, and management of design risk, and establish a robust, unified approach to PII across the industry.
“With a total premium level of £75 million, the architectural PII market is small relative to the other built environment professions; however, the role of the architect as lead designer in buildings projects attracts a disproportionately high level of professional liability within the project design team. The survey marks the first step of this programme of work – and I encourage all members to take part.”
RIBA is a charity that serves as a global professional membership body with the goal of driving excellence in architecture. Its review of the PII market is part of a targeted action plan.
