20 - Architects' Professional Indemnity Insurance

Abstract

This chapter discusses some basic insurance principles. The subject matter of an insurance policy may be the property owned by the insured against which the insured wishes to insure, that is, the contract works or the creation of a legal liability against the insured for which insurance protection, that is, professional liability is wanted. The purpose of professional indemnity insurance policy is to protect the insured against the legal liability for claims made against breach of professional duty. The chapter discusses some basic things that should be covered professional indemnity insurance policy. There is a limit up to which insurers will pay claims but not beyond. It is the insured's responsibility to select an adequate limit. The limit may be an aggregate limit covering all claims in every policy year or a limit in respect of each and every claim or series of claims from the same originating cause. A sensible approach to the risks that may affect an architect can eliminate some of them and mitigate the effects of others. It is logical to identify and control risk at the outset, rather than to argue about who is responsible for injury, loss, or damage after it has taken place.