Architects professional indemnity insurance is a requirement for practicing architects. You can either get an individual policy or you can also be covered from your employer’s policy. As a practicing architect, you can choose to be a sub-contractor to your fellow architects or you can also work for licensed corporations. Whichever you choose, it is essential that you are covered by professional indemnity insurance which you can get on your own or through your employer.
What is an Architects Professional Indemnity Insurance?
Architects professional indemnity insurance can protect you in the event that your client is disappointed with your service. This can cover the legal costs for defending yourself as well as the compensation cost that will be awarded to your client.
How much does an Architects Professional Indemnity Insurance cost?
There are many factors that can affect the cost of your insurance. For instance, it will depend on the coverage options that you choose like its level of excess, policy limit, etc. If you are an employer, then it will also depend on the number of employees that you have as well as your total turnover.
Why do you need an Architects Professional Indemnity Insurance?
Architects are expected to provide their clients with their expertise. Hence, when a client suffers from a financial loss due to the negligence of an architect, then the client can take some legal action. Loss does not pertain to financial only, it can also pertain to material and even physical.
Most often claims can take many years before they can be settled. As a result, you will be paying a huge amount for legal and compensation costs. This is the reason why you need professional indemnity insurance. It can help you defend claims that could be very expensive.
Who are the potential candidates for Professional Indemnity Insurance?
Aside from architects, professional indemnity insurance can also help other professionals such as accountants, doctors, lawyers, financial advisors, and even web developers. They purchase this policy in order to protect their business as well as their assets.
However, nowadays, professional indemnity insurance has been used by a wide range of industries. Aside from professionals, they are also taken out by business owners to secure their employees. Some insurance policies are actually optional. However, professional indemnity policies are sometimes required by law before they will be able to operate their business.
Moreover, insurance providers are now offering industry specified insurance policies which can cater to every distinct industry. It is very important that you should take out the right professional indemnity insurance from a reputable insurance provider who can provide you with a specific architect’s professional indemnity insurance policy.
What can be covered by Architects Professional Indemnity Insurance?
As a trained professional architect, you have enormous confidence in your work. But like any other businesses which provide professional service, they can be susceptible to claims of negligence. With an architect’s professional indemnity insurance, your business will be protected against any legal costs that may arise from defending yourself as well as the cost of the settlement. Look for architects professional indemnity insurance policies that can be tailor-made to meet your business as well as your clients’ requirements. Having a comprehensive policy can cover a lot of things including negligence, defamation, breach of confidence and infringement of intellectual property rights. Your client may file a claim for negligence in case you’ve delayed a project or you have given inaccurate advice or design. You could also be held liable for defamation, in the event that you are making untruthful statements which can likely damage a person or an organization. Breach of confidence refers to the act of exposing confidential or sensitive information to others without your client’s consent. Infringement of intellectual property rights occurs when you are accused of using copyrighted designs without securing the permission of the owner. Or maybe you are using designs and contents from a publication or website without the owner’s permission. Or perhaps you are blamed for issuing warranties, certifications, or approvals without any prior inspections.
Aside from professional indemnity insurance, you might also consider having public liability insurance for architects. Before taking out insurance for your architectural business, it’s worth thinking about what sort of risks will your company be facing. When your clients visit your premises or you visit them are their home, then you could be held liable for any injuries or damage to their properties.
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