ABSTRACT
This chapter explains why an architect needs professional indemnity insurance (PII). PII is an essential safety net. It describes the extent of the cover such insurance provides. Both the Architects Registration Board and the RIBA have strict rules relating to the maintenance of PII cover. Put simply, PII is a compulsory requirement for practising architects. The chapter provides an overview of the provisions of a typical professional indemnity insurance policy. A good PII policy will state that legal defence costs and expenses will be in addition to the limit of indemnity; otherwise legal costs will eat into the headline indemnity figure. The chapter discusses the risk management strategies an architect can adopt to reduce the possibility of claims. Risk management is the process of reducing the number of opportunities for mistakes to occur, and so reducing the number of claims that may be made against an architect.
