Architects Registration Board
The Architects Registration Board (ARB) is the governing body for Architects. They set the guidelines and the minimum standards for professional indemnity cover. The main requirements are:
The policy must be on a civil liability basis; Some policies that you will be offered will be based on a “neglect, error or omission” basis. This is not wide enough to satisfy the ARB criteria. The cover must be on an any one claim basis and the cover must not be subject to an aggregate claims limit. The policy must pay for Legal Defence costs in addition to the policy limits.
Minimum levels of cover
The following levels are minimum requirements of the ARB, they may not be sufficient for some firms.
Fee income less than £100,000 – £250,000 limit of indemnity
Fee income between £100,000 and £200,000 – £500,000 limit of indemnity
Fee income exceeding £200,000 – £1,000,000 limit of indemnity
The ARB does not set a limit or level in respect of excess, they merely state that any excess must be affordable
If the practice ceases, partners must ensure that they purchase run-off cover for at least six years. The limit of indemnity must be maintained at the highest level in the preceding three years to the cessation of the practice