by James Robinson
Up to 12,000 surveyors working in the public and corporate sectors have inadequate professional indemnity insurance and run the risk of being sued for negligence, claims the Royal Institution of Chartered Surveyors.
The institution this week sent out letters to all members working in the privatised industries, local and national government, government agencies and other commercial companies warning them of the findings of a working party report published this week. “Professional Liability in the Public and Corporate Sectors” found that large numbers of surveyors employed in these areas have no professional indemnity insurance and that many more are not adequately covered.
According to RICS honorary secretary and working party chairman Ian Oddy: “If the findings of this report prove to be the norm then thousands of chartered surveyors and members of other professions employed in local and central government and the corporate sector run the risk of legal action in cases of professional negligence.”
The working party’s conclusions were based on 17 examples of professional indemnity insurance policies provided by public and corporate sector employers.
In most cases, aggrieved parties take legal action against the relevant organisation or public body rather than against its employees. But individuals can also be sued, a fact highlighted by several recent court cases.
“The fact that there is a level of exposure is a matter of extreme concern,” says working party member Patricia Monahan.
The RICS is advising its members to check their position and seek to negotiate an indemnity with their employers if they do not already have one. It recommends that those in doubt seek legal advice.
The RICS now plans to liaise with other bodies, including the Royal Institute of British Architects and the Law Society, to bring the matter to the attention of government and “to focus attention on the risk that their members run and that our members run,” according to Oddy.
The RICS is also looking at developing a tailor-made insurance policy that members can take out in cases where their employers refuse to provide satisfactory cover.
