Lack of PI cover in the construction industry for fire safety works is an issue that, according to the Construction Leadership Council, has been preventing companies taking on projects and could delay essential work on building safety. We highlighted this issue in our earlier blog. This has also been recognised as an issue at government level. In February 2021 the UK government announced a commitment to work towards a state-backed indemnity scheme for qualified professionals unable to obtain professional indemnity insurance for the completion of EWS1 forms. Recently, RICS have secured new minimum PI insurance terms, due to come into effect by 1 May, which will hopefully ensure greater fire safety cover is available for chartered surveyors. Availability of PI cover underpins the delivery of works to improve building safety and this is a welcome step.
RICS has secured new insurance terms, providing greater fire safety cover for PII and launched new guidance on Risk, Liability and Insurance. As of 1 April 2021 RICS new Minimum Policy Wording and insurance rules for professional indemnity insurance (PII) are in effect, which will allow more chartered surveying firms to obtain improved fire safety cover in their PII. The new Minimum Policy Wording and insurance rules will mean that from 1 May 2021*, PII policies will provide greater fire safety cover for chartered surveyors.