Key Changes to RICS Minimum Terms for PII

RICS has made notable updates to its minimum policy wording in recent years, culminating in significant enhancements effective July 1, 2024. These changes reflect an effort to balance market sustainability with the need to protect professionals and their clients. Key highlights include:

Fire Safety Coverage:

• Coverage for fire safety claims is now mandatory for buildings of five storeys or more, provided work is conducted after July 1, 2024.
• Claims related to External Wall System (EWS) and Fire Risk Appraisal of External Walls (FRAEW) are now covered for buildings up to 18 meters, but only for professionals certified through the RICS EWS Assessment Training Programme.

Improved Scope for Smaller Buildings:

• Full civil liability coverage remains mandatory for buildings up to four storeys, ensuring comprehensive protection without retroactive exclusions for pre-July 2024 work.

Cyber Coverage Alignment:

• To keep pace with industry standards, RICS has aligned its cyber coverage requirements with the International Underwriting Association’s model clause, offering clarity and consistency across policies.

These updates mark a significant shift in the PII landscape for surveyors and construction professionals, reflecting both market feedback and the increasing complexity of fire safety regulations.

Implications for Surveyors and Construction Businesses

The expanded requirements underscore the importance of rigorous risk management and meticulous record-keeping for professionals involved in building safety assessments. With retroactive exclusions applicable to fire safety coverage for taller buildings, firms must ensure they have accurate documentation of prior work to mitigate exposure.

Additionally, the need for specialised certification—such as the RICS EWS Assessment Training Programme—emphasises the value of upskilling to remain compliant with the evolving insurance landscape.

How AssuredPartners Can Help

At AssuredPartners, we understand the unique challenges faced by surveyors and construction businesses in securing adequate PII coverage. Our team works closely with clients to navigate these changes, offering:

• Tailored Insurance Solutions: Customized policies designed to meet the specific needs of your profession and adhere to RICS’ updated requirements.
• Claims and Risk Management Support: Guidance in managing claims, identifying exposures, and implementing strategies to reduce future risks.
• Expert Market Insights: Leveraging our industry knowledge to help you secure the best coverage at competitive premiums.

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