New RICS Insurance Rules
4 May 2021
Professional Indemnity cover continues to be a challenging area for many businesses, but with new rules from the RICS in respect of Professional Indemnity Insurance for surveyors, it’s even more of a headache.
The new rules relate to the RICS Approved Minimum Wording for 2021 and affect fire safety and cyber cover.
Fire safety cover
For the last few months RICS has not required firms to apply for dispensation when insurers have imposed fire safety cover exclusions. That flexibility, designed to make it easier for firms to secure PI cover at a time when the market was particularly challenging, has now been withdrawn.
As of 1 May 2021, insurers are NOT permitted (without specific dispensation from RICS) to exclude fire safety claims on a property of four storeys or less. In addition, fire safety coverage must be provided, as a minimum, on an aggregate, defence-cost inclusive basis.
As of 1 April 2021, RICS now requires its members’ PI insurers to clarify the cyber cover provided. RICS is not imposing any minimum cyber requirements, simply formalising the need for transparency on the nature of the cover.
We’re here to help
These changes make our role as broker even more important to our RICS member clients, as our knowledge and understanding enables us to fully support them with their PI and cyber cover.
If you need help, just get in touch with Charlotte Perkins.