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Professional indemnity insurance for building surveyors

Professional indemnity insurance for building surveyors

We generally recommend professional indemnity insurance for building surveyors and have developed an on-line quote and buy system to streamline the process.

If you are a RICS member then you will have to be insured on a RICS approved surveyors wording. If you are not a RICS member than a construction professionals wording will be more than sufficient and you should be able to buy a policy online through our site, subject to the proposed risk satisfying the underwriting criteria stipulated by the insurers.

Why buy professional indemnity insurance for building surveyors?

As a building surveyor you provide a service that comes with an expectation of a certain level of professionalism and specialist knowledge.

Professional indemnity insurance covers you in respect of compensation that you may have to pay to your clients arising out of problems associated with the work you have carried out for them. The insurance is designed to cover the cost of defending you against any allegations of wrongdoing as well as covering damages that may be awarded against you. It may also cover the cost of correcting mistakes in order to avoid a more costly legal action.

Regardless of how many years’ experience your firm may have, there is always the possibility you (or one of your team) could make a mistake.

Example claims against building surveyors

Negligent survey report

“A residential survey failed to identify cracking on the ground floor wall that was adjacent to a large tree. After the property was purchased, the buyer had to pay for remedial work to the building including a substantial amount of underpinning. The claim was eventually settled against the surveyor for £ 30,000.

This claim was pursued by a lender against a surveyor following repossession and subsequent sale of property. Claim settled at £ 75,000.

What will professional indemnity insurers look for in order to assess the risk ?

  • Company size – The overall size of the firm. The insurers will want to understand the size of your firm in terms of the number of directors and qualified staff who give and also the turnover of the firm.
  • Qualifications and experience – Insurers will most probably want to see a CV which shows that the relevant people within the firm have a minimum of five year’s experience.
  • Type of work – Insurers will want to understand the nature of the work that you are involved in.
  • Contract sizes – Insurers will be interested in the total contract values that you are involved in and not just your own fee income for the job. Insurers see a direct correlation between the contract values and the potential exposure that they could face to large claims.
  • Retroactive exposure – Does the business have an exposure to claims arising from past work, whether in the current business or a previous company.
  • Overseas exposure – Does the practice carry out work for overseas clients.
  • Claims experience – The claims experience is an important factor in the assessment of a risk. This information reflects on the type of work carried out by a company. It also reflects the quality of the company’s work, experience, staff & Internal risk management.

Typical professional indemnity insurance for building surveyors, on RICS approved wording.


Policy Coverage would include:

  • Professional negligence of the insured
  • Breach of intellectual property rights – Unintentional (other than patents)
  • Breach of confidentiality – Unintentional
  • Dishonesty
  • Loss of Documents – third party or data
  • Libel and Slander
  • Breach of civil liability
  • Unintentional defamation
  • Computer virus transmission
  • Negligence of sub-contractors
  • Irrecoverable fees
  • Rectification and loss mitigation costs
  • Bodily injury or property damage arising from breach of professional duty
  • Defence costs
  • Court attendance costs

For further advice and information, please do not hesitate to contact us.


Other Insurance Services

Professional Indemnity Insurance
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Injury & Incapacity Benefit Insurance
Director & Officers Liability Insurance
General Office Insurance
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Insurance For Property Owners
Bespoke Business Insurance
Contract Works Cover
Trade Liability Insurance

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