Professional Indemnity Insurance Regulations

10-Feb-12

Any member of the public with a legitimate claim against a member of the RTPI has a right to expect that member to have the means of meeting the claim. It is the responsibility of the RTPI to ensure that this is the case.

Am I required to carry professional indemnity insurance?

All categories of the RTPI’s membership who act in a consultant capacity may be subject to the RTPI’s professional indemnity insurance regulations. To help you decide whether your type of employment falls within the RTPI regulations, please ask yourself the following questions:

  • Are you a director or partner, or are you ‘held out’ as being a director or partner, in a firm offering planning services1 to the public2?
  • Are you employed3 in a firm offering planning services1 to the public2 where your name is published on business stationery, the firm’s website, and/or any other business communication or material? (this question does not apply to members employed by Local Authorities)
  • Are you a consultant to a firm offering planning services to the public?
  • Are you a consultant offering planning services to the public?
  • Do you undertake planning services for clients, or offer voluntary advice, on an ad hoc or occasional basis?
  • Do you act as an unpaid, voluntary professional planning adviser to organisations or individuals (including family, friends and acquaintances) otherwise than as a registered volunteer with an RTPI Planning Aid service4?
  • Even if you are not doing so now, have you acted in any of the above capacities at any time within the last six years?                            

1.'Town planning services' covers all work which town planners hold themselves out as being professionally qualified to undertake. It Includes training but does not include teaching or lecturing.

2. The public' includes professional, corporate and institutional clients. 

3. Members employed by a firm offering planning services to clients must ensure they hold appropriate PII cover under the firm’s insurance, or alternatively hold their own PII insurance.

4. Members who act in a voluntary capacity only through an RTPI Planning Aid service should answer ‘NO’ to this question. 

5. The regulations are published in The Code of Professional Conduct.

If your answer to any one or more of the above questions is 'yes' then you will be subject to the RTPI’s professional indemnity insurance regulations5.

 

What type of cover will I need?

The minimum cover required is as follows:

  • £100,000 for each and every claim if in the preceding year your practice's gross income was less than £40,000; or
  • two and a half times the gross income for each and every claim if it was between £40,000 and £200,000; or
  • £500,000 for each and every claim if more than £200,000;

The policy must have a maximum uninsured excess (i.e. the amount the practice has to find from its own pocket for any claim) of: 

  • not more than £7,500 if the limit of indemnity is £250,000 or less;
  • not more than 2.5% of the sum insured, or £10,000, whichever is greater, if the limit of indemnity is more than £250,000.

Run off cover

Professional indemnity insurance is provided on a claims-made basis. You will only be protected if cover is in place in the event of a claim being made against you, rather than the date when the relevant advice was given. Members are strongly advised to consider holding run-off cover for a period of six years after they have ceased trading.

Further information is available under annex A7 in the Code of Professional Conduct.

Low income scheme

Ever been asked for advice? Considering part-time consultancy work or semi-retirement? The RTPI has introduced a scheme with insurance brokers Perkins Slade Ltd, to provide a cost-effective option for members who offer free advice, or whose income from uninsured advice is £20,000 or less per annum.

  • The scheme provides the required level of insurance cover, with a £300,000 limit of indemnity, for an annual premium of just £125.
  • Further details of the scheme are available from Perkins Slade Ltd (details below)..

Further advice

For further advice and information on any of the items in this advice note please contact RTPI professional indemnity insurance, 41 Botolph Lane LONDON EC3R 8DL

t: 020 7929 9494 e: pii@rtpi.org.uk 

Where can I buy insurance cover from?

We have listed below the contact details of four leading PII insurance brokers in the UK but more can be found in your Yellow Pages.  Please note that the RTPI does not approve or regulate any PII broker. Members are strongly advised to obtain quotes from at least four brokers to ensure they receive a competitive quote, and to review their insurance premium on an annual basis. 

3 Broadway, Broad Street, Birmingham B15 1BQ t: 0121 698 8000

Wessex House, 4 Greystoke Business Centre, Portishead Bristol BS20 6PY t: 01275 843000

Bevis Marks House, 24 Bevis Marks, London EC3A 7JB (contact Karan Kolare 0845 371 1433).

The St. Botolph Building, 138 Houndsditch London EC3A 7AG  (contact Marc Rowson or Brian Boehmer) Tel:+44 (0)207 933 2034

 

All reputable insurance providers will be registered with the Financial Services Authority

 
Author:
Chris Sheridan
Publisher:
The Royal Town Planning Institute
Date:
10-Feb-12
Categories:
Planners in the Workplace 
Sections:
Member Services

This article has been read 15807 times.