Professional Indemnity Insurance for Architects
Why is it important?

The law and architects’ code of ethics requires an architect to exercise their skill at an appropriate level expected of that profession. But professionals are only human and mistakes do happen. Any financial loss arising from a mistake or failure by that professional to do so, may result in an award in favour of a third party. You may also be held to be liable for a mistake even though there was no negligence (i.e. breach of the Trade Practices Act). Generally an employee architect is covered by the employer’s PI cover but appropriate and adequate PI insurance is essential for those undertaking any consulting or contracting work for which they are liable.

An architects PI policy is designed to protect the personal assets of a consulting architect against damages awarded against them by a court, or resulting from an approved negotiated settlement, in relation to an act, error or omission committed by the professional during the conduct of their professional business activities. It also covers the costs and expenses of defending claims.

In today’s litigious society, no architect undertaking consulting or contracting work can therefore ignore the real possibility that a claim may be brought against them by a disgruntled client. A PI policy offers peace of mind, allowing you to carry on your architectural services business activities knowing you’re appropriately protected by the relevant coverage.