The RICS has announced details of its collective policy on professional indemnity insurance — on offer to the institution’s 80,000 members from April 19.
“During the past five years or so professional indemnity premiums have roller-coasted,” states the RICS, “one year peaking, the next year levelling out or even falling. This has made budgeting in this region of a firm’s finances a very hit and miss affair.”
The RICS’ collective policy aims to stabilise this situation by offering long-term “run-off” cover for a single premium payment where there is no other continuing insurance protection. Up until now, liabilities have been protected only by annual continuing insurance costs.
Under this policy, cover would be available to practices which have been insured in the “London” market for at least three years.
After the expiration of the five-year period, “run-off” would be provided free for so long as the collective policy arranged by RICS Insurance Services continued — and assuming that the insurance market at that time is prepared to continue this benefit. If death occured in service, cover would be provided free to members insured with RICSIS.
This policy is a collective policy rather than a master policy such as that adopted by the Law Society because — unlike solicitors — chartered surveyors are not a statutory profession.
This status allowed the Law Society to impose a master policy on its members during the 1970s in a way forbidden to the RICS.
