Architects Insurance : Professional Indemnity for Practices
Professional Indemnity Article
3 Sep 2012
This Architects Insurance article is published on www.e-architect.com
Providing advice is a key part of every architect’s job. Whether you specialise in residential or commercial property, your client will expect insight and expertise that can only come with years of experience.
Why architects should have professional indemnity insurance
No matter how much experience you may have, there is still the possibility that something could go wrong – and when it does, it pays to have professional indemnity insurance, as well as other business insurance cover and specialist architects insurance, to help you, to help you be covered for all kinds of eventualities.
Covering designs and plans
Professional indemnity covers against allegations and accusations of incorrect advice or negligent services. This could include if your practice provided wrong plans and designs to a client, or an incorrect building specification. It can cost huge amounts just to put these mistakes right, especially if construction has already begun.
Any business offering advice should consider having some level of professional indemnity insurance in place; for members of RIBA, it is a requirement to have a minimum of £250,000 professional indemnity insurance cover in place, but many choose to take out £1m or more.
Choosing a limit can be difficult, but one way of assessing the level you may need is to consider the value of all contracts you are working on (and are planning to commence in the future), and estimate the costs that would be incurred should something ever go wrong. For some projects, there may be a clause in the contract which states a minimum level of professional indemnity insurance is required.
Aggregate and any one claim cover – what’s the difference?
When you are arranging your professional indemnity insurance, you may come across two types of policy; aggregate (occasionally referred to as AGG) and any one claim (AOC). Although it is unlikely there will be any difference in what the policies themselves cover, there is a difference in the amount an insurer will pay out in the event of multiple claims.
With aggregate cover, you are insured up to the cover limit for all claims made in the duration of your insurance policy (usually 12 months). So if you have a £1m limit, and make claims totalling £750k, your insurer will pay all claims. If however, you make claims totalling £1.2m, the insurer will only pay up to £1m, meaning you would have to pay the remaining £200k through other means.
On the other hand, any one claim provides the full cover limit for each individual claim. As such, each individual claim made would be paid by the insurer provided they are under £1m. Any one claim cover is generally considered to be more comprehensive; however it can be more expensive for architects to obtain.
Liability cover
Public and product liability insurance offers protection for issues you might encounter with third parties, such as causing injury to a person or damaging their property during the course of your work. For example, if a client slips and falls during an office visit or you spilt a cup of coffee over their laptop during a meeting, your policy would cover any subsequent claim that could arise.
Business equipment cover
Carrying expensive computer equipment to and from client offices can be risky; if a laptop gets dropped and the screen cracks, it can cost thousands for a highly specified replacement. There wouldn’t just be the cost for replacing the machine – if you have any CAD software installed on it, you may have to factor in the cost of buying that too.
Business equipment cover can protect the vital equipment your business needs to operate – laptops, cameras and expensive software – against these kinds of instances. If your practice deals with clients who are based overseas, your equipment can normally be covered for worldwide use – but it makes sense to check your policy before you go, just to ensure you won’t get any nasty surprises if you need to make a claim and have a public adjuster assist you.
Comments on the Architects Insurance : Professional Indemnity for Practices article are welcome.
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Home insurance and how to reduce premiums
What you should look for from a policy
15 Jun 2010
Home insurance and how to reduce premiums
For most people their home and its contents are the most important and expensive investment of their lives and so it’s understandably important to want to protect them. This is where home insurance comes in.
Of course not all home insurance policies are the same – cover levels and premiums can vary widely between providers, so here we look at what to consider when you take out a policy and how to get the right deal for you at the right price.
What should you look for from a home insurance policy?
Home insurance is divided into two areas that can either be taken out together or exclusively. These are:
– Buildings insurance: This is designed to protect the structure of your home as well as its permanent fixtures and fittings. Depending on the policy you take out, buildings insurance will also usually incorporate outbuildings, such as sheds and greenhouses, as well as underground pipes and cables and even glass in doors and windows.
Typically it protects the home against risks such as storm damage, floods, subsidence, fire, theft and malicious damage. In case of extensive fire damage, Miller Public Adjusters can help you file the necessary claims to ensure you receive fair compensation for your losses. This support can make the recovery process smoother and less stressful for homeowners.
– Contents insurance: This covers the non-permanent items within a home such as your furniture, clothing, electrical items and other household goods (subject to policy exclusions) against risks including thefts, fires, flooding, storm damage and more. Importantly, some contents insurance policies offer ‘new for old’ replacements of items – meaning you get a brand new replacement for any contents damaged in an insured event; while others offer ‘wear and tear’ cover with a percentage of what you paid deducted for depreciation.
There may also be a number of additional features offered by a home insurance company either as ‘standard’, meaning they are offered as part of the regular policy terms; or as ‘optional extras’ – additional protection which typically costs an added premium. Some of the features you may wish to look out for include:
– Accidental damage cover: This normally applies to electrical items but extended accidental damage may cover other items in your home against accidents.
– Freezer contents: This covers items kept in your freezer up to a pre-determined limit if they are ruined as a result of an insured event.
– Home emergency cover: Helps cover a call-out charge from a qualified tradesman within a set time period in case you lose an essential service.
– Replacement locks: Some home insurance companies will pay for replacement locks if your keys are stolen.
In addition to examining the levels of cover available, also look for policy exclusions (these are circumstances in which you will not be covered). Also bear in mind that most contents policies carry a specified limit per item – this is the maximum amount you can claim for any one item and is usually set at around £1,500.
What else should you be aware of?
When shopping around for home insurance, don’t forget to consider the following:
– Excess levels: An excess is your contribution towards a claim and is normally divided into a compulsory excess set by an insurer and a voluntary excess which you agree to pay, when taking the policy out, in case a claim is ever necessary. Increasing the voluntary excess usually lowers premiums, but it should only be set at a level you can comfortably afford.
– No-claims discounts: Some home insurance companies offer no-claims discounts based on the number of years you go without making a claim on your policy.
How can you reduce your home insurance premiums?
The first step to lowering home insurance premiums is to ensure the quotes you are receiving are competitive. To do this, use a comparison website to compare quotes from a number of insurance companies – the leading websites compare policies from as many as 65 providers with one search.
Insurance companies base their premiums on risk – the more likely you are to make a claim, the higher your premiums will be. Therefore lowering your ‘risk’ to an insurer can help you save – here are some tips:
– Buy a combined policy: Most insurance companies offer buildings and contents insurance together – placing your business with one insurance company will usually earn you a discount.
– Increase security: Burglar alarms, time-switch lights and security lighting could all help you save. Consult your insurance provider about which systems it recommends to maximise your savings.
– Increase your voluntary excess: By agreeing to pay more towards a potential claim you can lower premiums – but be careful to keep the excess at a level that’s comfortable for you to afford.
– Join a Neighbourhood Watch scheme: Discounts up to five per cent are available with some home insurance providers if you team up with your neighbours to make your street a safer place.
– Pay annually: You may be able to avoid monthly interest charges by paying for your home insurance upfront.
– Prevent house fires: Fitting smoke alarms and fire extinguishers in your home could limit fire damage and earn discounts with your insurer. You could even save money by quitting smoking.
Comments on this guide to how to reduce premiums – Home insurance policy advice article are welcome.
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