Why has ARB issued Guidelines that set indemnity levels?
The Architects Act 1997 gives the Board power to issue a Code laying down standards of professional conduct and practice. The current Code specifies that architects should maintain “adequate and appropriate” PII, and the Guidelines are designed to assist practitioners by encouraging adequate and appropriate cover. The Board recognises that the circumstances in which individuals practice, and in which claims can arise, vary substantially. It also recognises that it may be wrong to assume that there is necessarily a link between the level of gross fee income and the potential size of a claim. It is important to understand, however, that it is the responsibility of a professional person to ensure that they have adequate and appropriate cover. This should be done by seeking expert advice from your broker, but in any event an architect is expected to hold a limit of indemnity of no less than £250,000.
