If you’re an architect or draftsperson, then you may need some insurance.
In this page, we explain the types that are more likely to apply to you, what’s mandatory and where you can purchase insurance once you’re ready to proceed!
As an architect, you’re continually providing advice and designs that could be misconstrued or may contain mistakes.
Consequently, if a claim is made against you because of a mistake or negligence, and you’re liable, then you’ll likely face significant out-of-pocket expenses which could kill your business!
A good way to ensure you’re covered if something does go wrong, – is to have insurance. Some benefits of being insured can include:
All practising architects must hold professional indemnity insurance*. Employers usually provide this type of insurance for the architects they employ. However, if you’re an owner, then the responsibility will generally be on you. Professionally indemnity insurance covers architects against claims of breaching their professional duties. In addition to professional indemnity insurance, there are many other types of business insurance you can consider. Continue reading for more information.
For architects, the following insurances may be particularly relevant, in addition to professional indemnity insurance:
Public liability insurance* can provide protection for you and your business in the event a customer, supplier or a member of the public claims against you due to injury or property damage as a result of your negligent business activities. It’s one of the most common types of business insurance and is often required when you lease office space.
Management liability insurance* can provide protection to both the business and its directors or officers for claims of wrongful acts in the management of the business. Management liability is separate to professional indemnity insurance and covers claims such as fraud, discrimination, unfair dismissal and more.
Additionally, it may be necessary to consider the following types of cover:
You may also want to consider insurance like tax audit cover*, a policy that pays for accountancy and tax agent fees in the event of a tax auditor theft cover*. Discover more types of business insurance.
*Please note: All these forms of cover are subject to terms and conditions. Always read your policy’s product disclosure statement (PDS) for a complete overview of what’s covered and excluded by your insurer.
No. Each insurer will provide different types and levels of cover i.e. what’s covered and the figure you’re insured up to. However, some may offer the same level of cover but at a different price. That’s why it’s a great idea to compare!
It’s also important to remember that your premiums may vary depending on the excess you choose. The excess is the amount you are obliged under the policy to pay should you make a claim, before your insurance kicks in. How much should you choose to pay for your excess? This will depend on how much you can afford to pay in the event of a claim, so be mindful of it when applying for cover.
How much cover is enough? It’s a good question that will depend on your unique situation. Think about the sort of projects you work on and the budgets involved. Are there minimum insurance requirements for any projects you are working on? You’ll also need to ensure your sum insured amount doesn’t leave you in danger of being underinsured.
The cost of insurance premiums will depend on a range of variables; including the type of insurance you take out, company size, business type and location. What’s the best way to gauge how much insurance will cost you and your business? You guessed it! Get a business insurance quote!
Run-off insurance* continues to provide professional indemnity cover once your business has closed its doors. If any claims are made from work you completed in the past, then run-off insurance will protect you.