What is Professional Indemnity Insurance Cover?

When you embark on a self-build project you need to be assured that the professionals who are working with you to make your vision of a new home a reality can be held accountable should their advice turn that dream home into a nightmare.

That’s where Professional Indemnity Insurance (PII) comes in. If one of the professionals – architect, building survey, specialist subcontractor etc – is negligent in the way they have supervised your self-build process and hasn’t ensured that the design is correct or that some of the tradesmen have done their job properly, then they may be a breach of the contract.

That is why your architect, building surveyor or whoever, needs to demonstrate at the outset that they have got PII that will cover a pay out if they are found in breach of contract. The purpose of having the PII cover is so that you know that if you have to make a claim against someone then there will be money to meet the claim.

It’s not a statutory requirement but a practical one, because without being able to prove it was in place when your architect or building surveyor filled out the Stage Payment Certificate, your lender will not drawdown your phased mortgage payment. And if you decide to later sell your property, the purchaser’s lender will refuse to lend if such cover was not in place.  

 

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Written by Heather Campbell

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