As an architect, you have the power to create masterpieces that are safe, functional, and aesthetically pleasing. However, despite your best efforts, there are always chances of something going wrong. Any small mistake can lead to problems or massive losses, leaving you liable for all such damages or financial losses.
That’s where Architects’ Professional Indemnity Insurance comes in. It protects you against such claims made by the clients on your design or construction.
In this blog, we’ll dive into Architects’ Professional Indemnity insurance. So read further to know what is covered and what is not under this policy.
Architects’ Professional Indemnity Insurance is a type of insurance that provides coverage for claims made against architects for professional negligence. It includes error, omission, or a failure to exercise the reasonable skill and care expected of a competent architect, resulting in damage or financial loss to a client.
This type of insurance is essential for both individual architects and firms, as it provides financial help for legal defence and damages for the claim by the client. For instance, practising architects work as sub-contractors for other architects or offer services through licensed corporations, making it essential for them to take Professional Indemnity Insurance.
When you become a professional, you are legally considered an expert in a particular field. It means you must meet a higher standard of numerous qualifications than the general public in their chosen field.
So if a client or landowner suffers losses due to your failure to perform the professional duty, the client can sue you for such physical, material and financial loss. And sometimes, settling these claims can take many years, adding to the heavy legal bill whether you win or lose.
Therefore, Professional Indemnity insurance can help you when defending a claim. So you won’t bear such damages out of pocket.
Architects’ Professional Indemnity Insurance covers legal charges and liabilities arising from professional negligence. Some of the common reasons for claims include:
Moreover, Architects’ Professional Indemnity Insurance offers you financial protection for the cost incurred in:
However, to settle the case before it results in a claim against you or the organisation, PI helps you through mitigation charges.
While Architects’ Professional Indemnity Insurance provides valuable protection for architects, it may not cover certain situations like:
Some other losses happening due to war, electrical or telecommunication failure, infringement of intellectual copyrights, fines or penalties, and more are not included in professional indemnity insurance. However, every policy has different exclusions, making it crucial to understand what is not covered by your policy. So you can take appropriate steps to mitigate such risks.
When selecting an Architects’ Professional Indemnity Insurance policy, there are several factors to consider in addition to what is covered and what is not. These include:
As an architect, you play a crucial role in designing and constructing complex projects. Any mistake on your part holds the capability to cause serious issues, putting a hefty financial burden on you.
Thankfully, Architects’ Professional Indemnity Insurance protects you as an architect from professional negligence during a claim. We hope all the points discussed above will help you to select the best coverage, helping you mitigate risk.
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