This FAQ is for practising architects, directors and practice managers at UK architectural practices. It covers what the ARB Code requires for PI cover, where the Building Safety Act 2022 changes the risk picture, how collateral warranties affect insurer appetite, and the realities of cladding and fire safety exclusions in the post-Grenfell PI market. The answers reflect the position under the ARB Architects Code and UK law as at May 2026.
The PI market for architects has changed significantly in the last decade. The Building Safety Act, cladding-related exclusions, the long-tail Defective Premises Act amendments and a contraction in insurer capacity have made wording, exclusions and limit far more important than headline premium. For tailored guidance contact Apex Insurance Brokers on 0117 325 0027 or info@apexinsurancebrokers.co.uk. For the general PI position see our main PI FAQ hub.
What does the ARB require for PI insurance?
The Architects Registration Board’s Architects Code (Standard 8) requires every architect registered with the ARB to hold “adequate and appropriate” Professional Indemnity Insurance covering current and previous work. The Code does not set a fixed monetary minimum — instead, ARB publishes general guidance on minimum limits scaled by practice size and work type. ARB’s published guidance has indicated a £250,000 minimum for sole practitioners doing low-risk residential work, scaling significantly upwards for higher-risk activity. The “adequate and appropriate” wording places the responsibility on the architect to assess what is right for their practice; ARB can investigate if cover is plainly insufficient.
How much PI cover do I actually need as an architect?
The minimum is rarely the answer. Cover should reflect the largest single project the practice handles, the contract terms accepted, and the limitation tail. Sole practitioners doing small residential extensions can sometimes justify £250,000 to £500,000; mid-sized practices doing commercial or larger residential typically buy £1m to £2m; practices working on higher-risk buildings under the Building Safety Act (residential 18m+, hospitals, care homes) need significantly more — £5m to £10m is increasingly the norm, and clients on those projects often demand higher. Defence costs alone on a contested construction claim run to six figures.
What is the Building Safety Act 2022 and how does it affect PI?
The Building Safety Act 2022 introduced a new regulatory regime for “higher-risk buildings” — broadly, residential buildings 18 metres or seven storeys in height, plus hospitals and care homes meeting equivalent criteria. The Act extended limitation periods for claims under the Defective Premises Act 1972 — to fifteen years prospectively and (controversially) to thirty years retrospectively in certain cases. For architects involved in residential design, this dramatically extends the tail of potential claims. PI insurers have responded by raising premium, applying exclusions on cladding and fire safety, and restricting capacity for higher-risk building work.
What is a “cladding exclusion”?
A cladding exclusion is a wording on most PI policies issued after 2018 that excludes claims arising from external cladding, fire-stopping, compartmentation or related fire safety failures on buildings of certain heights. The scope of the exclusion varies: some are limited to specific cladding materials (ACM, HPL); others apply to all cladding-related claims on residential buildings above a threshold height; some apply to all fire safety work on higher-risk buildings. The exclusion was introduced because cladding claims were unsustainable for the PI market post-Grenfell. Architects with historic cladding involvement face the hardest renewal conversations.
Can I get PI cover that includes cladding work?
It depends on the practice’s profile and the work involved. Cover that responds to cladding-related claims is available but at premium levels, excess levels and limit restrictions far higher than standard. Many architects working on cladding remediation projects accept that their PI may not respond fully to cladding-specific claims and rely on contractual indemnities from contractors or client-side warranties. The Building Safety Levy and the government-backed Cladding Safety Scheme have changed the funding landscape; the insurance position is evolving and should be checked at every renewal.
What is a collateral warranty and why do they matter?
A collateral warranty is a direct contractual undertaking between the architect (or another consultant) and a third party — typically a funder, future tenant, freeholder or purchaser — duplicating the obligations owed under the original contract. They allow third parties to sue the architect directly without going through the original client. Collateral warranties are routine on commercial and large residential projects. They significantly expand the architect’s exposure and the PI insurer’s risk; insurers ask about collateral warranty practice at proposal, and excessive use of collateral warranties (particularly with onerous terms) can affect both cover and premium.
What are “net contribution” clauses and should I insist on one?
A net contribution clause limits the architect’s liability to the share of damage that the architect actually caused, rather than the full joint-and-several share that would apply by default. Without a net contribution clause, an architect on a multi-consultant project can be liable for 100% of the claimant’s loss if other consultants are insolvent or uninsured. With one, the architect’s liability is capped at their proportionate share. RIBA strongly recommends net contribution clauses; many PI insurers ask whether the practice routinely includes them in appointments. Insisting on a net contribution clause is one of the most valuable contract negotiations an architect can make.
What about design-and-build (D&B) liability?
Design-and-build procurement transfers design liability to the contractor, who in turn novates the architect (and other consultants) onto its design team. The architect typically signs both the original appointment with the employer and a novated appointment with the contractor. This creates “duties to two clients” exposure — the employer side and the contractor side — and can amplify liability. Some PI policies impose specific terms or exclusions on D&B novated work; insurers ask supplementary questions about D&B exposure at proposal. The wording of the novation deed matters significantly to the insurer’s ability to defend.
Does PI cover work for contractors as well as for clients?
Yes, where the architect is engaged by a contractor (typically on a design-and-build project) the policy normally responds to claims against the architect, whether brought by the contractor itself, the original employer or third parties. The wording must not exclude “work for contractors” — most don’t, but some specialist wordings do. Where the architect is engaged direct by a contractor on a turnkey project, the insurer’s appetite can be more cautious because the architect is operating one step removed from the end client; underwriters ask specifically about this proportion of work.
How long does run-off cover need to last for architects?
The ARB Code requires run-off cover for an “appropriate period” without fixing a number. Most architects buy six years minimum, matching the basic Limitation Act period. Practices with material residential or Defective Premises Act exposure should consider twelve to fifteen years given the Building Safety Act extension of limitation. The Defective Premises Act’s thirty-year retrospective extension creates a theoretical maximum that is rarely commercially insurable — most architects accept some residual long-tail exposure as the cost of having traded. Run-off premium typically tapers across the years and can be substantial cumulatively.
What is a “JCT” exposure and what should I check?
JCT (Joint Contracts Tribunal) standard form contracts are the default building contracts on most UK projects. The architect is usually named as the contract administrator and certifier. Errors in administering the contract — issuing incorrect certificates, missed contractor entitlements, wrong extensions of time — are PI claims. Insurers ask about contract administration practice, particularly the proportion of fee income deriving from CA roles and the use of specialist contract administration software. Practices with high-value JCT certification roles should consider this in their limit decision.
Does PI cover party wall surveying work?
If party wall surveying is done within the practice’s professional services and is registered with the practice’s PI, yes. Party Wall Surveyors are not separately regulated by ARB; some architects are appointed as Agreed Surveyors under the Party Wall etc. Act 1996 and others act for one side or the other. Claims arising from party wall surveying — incorrect awards, missed time limits, conflicts of interest — are normally within standard architects’ PI cover. Practices doing significant party wall work should mention it at proposal.
How does ARB’s “appropriate cover” obligation work in practice?
The ARB Code places the obligation on the architect to assess what is “adequate and appropriate” for their practice. ARB does not pre-approve specific policies or insurers. If a complaint or claim leads ARB to investigate the practice’s PI arrangements, the test will be whether a reasonable architect in the same position would have viewed the cover as adequate — measured against the work undertaken, the contract terms accepted, and the foreseeable scale of any claim. Buying the cheapest available policy and ignoring exclusions has been a source of ARB action; broker advice should be evidenced.
Does my PI follow me to my next firm?
Cover for past work is held by the firm that did the work, not by the individual architect. When you move firms, your work at the previous firm remains covered by that firm’s PI (or its run-off cover); your work at the new firm is covered by the new firm’s PI. If the previous firm closes without proper run-off, your past work is unprotected — and you, as the architect who did the work, can be personally pursued. Sole-trader architects who go to work for a larger practice should ensure their previous practice’s PI arrangements are properly closed off.
Does PI cover historic CDM coordinator work?
Historic CDM Coordinator appointments (under CDM 2007) and current Principal Designer appointments (under CDM 2015 and Building Safety Act regulations) are typically within “professional services” for PI purposes. The Principal Designer role under the Building Safety Act has additional regulatory weight and is an area of active enforcement by the Health and Safety Executive. Some PI insurers ask supplementary questions about Principal Designer appointments and the practice’s experience. The risk is real — a Principal Designer faces personal liability for breaches under the regulations.
What is the position on fire safety work specifically?
The PI market has tightened materially around fire safety work. Many policies now contain “fire safety exclusions” alongside or in place of cladding exclusions — excluding claims arising from fire stopping, compartmentation, escape design and related work. The Fire Safety Act 2021 and Building Safety Act 2022 between them have created a regulatory landscape where the architect’s exposure on residential fire safety is significant. Practices doing fire safety work, or remediation of existing fire safety failures, face one of the harder PI underwriting conversations and may need specialist or layered cover.
Are claims from sub-consultants covered?
If you have engaged sub-consultants on a project (structural engineers, building services, landscape, specialist designers) and one of them is negligent, your client will normally sue you (the lead consultant) and your PI policy will respond. You then seek recovery from the sub-consultant’s own PI. The policy will not cover the sub-consultant directly. Most policies require sub-consultants to carry their own appropriate PI; failing to vet this can leave you absorbing a loss you would otherwise recover. Some practices require evidence of sub-consultant PI before engagement.
Does PI cover overseas projects?
Depends on the wording’s geographical limits and jurisdiction clauses. Many UK architects’ PI policies cover worldwide projects and worldwide jurisdiction but exclude USA / Canada because of the very different damages regime. Projects in countries with civil law systems (most of Europe, Middle East, Asia) are usually covered. Architects doing work in jurisdictions with extreme liability regimes (or where contract law differs significantly from English law) should raise this at proposal. The wording’s response to local-court judgments is what matters at claim.
What is “consequential loss” exposure?
Consequential loss is the loss suffered by the client as a downstream consequence of the architect’s negligence, beyond the immediate cost of rectifying the design defect — for example, the client’s lost rental income from a delayed completion, the loss on a resale of the building because of the defect, or the loss of business reputation. UK PI policies normally respond to consequential loss claims; some policies include sub-limits or exclude certain heads such as pure economic loss. Contracts often try to exclude consequential loss; the architect’s negotiation position on this is improved by a clear PI cover for it.
Does PI cover advice given before the project began?
Yes, where the advice was given in the practice’s professional services capacity. Pre-appointment advice — feasibility studies, planning consultancy, site appraisals — is within scope of standard architects’ PI provided the practice was acting in its professional capacity. The risk is when “free” advice is given outside formal appointment — a quick site visit, an off-the-cuff opinion to a friend, a verbal pre-contract chat. Better practices issue letters of engagement (or at least file notes) even for free pre-appointment work, to keep the activity clearly within the practice’s professional remit.
What is “novation” and how does it affect cover?
Novation is the transfer of the architect’s original appointment from one party (typically the employer) to another (typically the contractor on a design-and-build project). The novated architect now has duties to the contractor as well as to the original employer. PI cover normally responds to claims under both the original and novated appointments, provided the novation is within the practice’s professional services and is properly documented. Insurers ask about novation practice at proposal; un-noted or badly drafted novations can create coverage uncertainty.
How are claims from previous projects treated?
Architects’ PI is claims-made — the policy in force when the claim is made responds, not the policy that was in force when the work was done. A claim from a project completed in 2018 reported in 2026 is notifiable to your current insurer. The defining factor is the policy’s retroactive date: if it covers work back to 2018, the claim is in cover; if not, it is not. Architects switching insurers must maintain full retroactive cover at every change. Run-off picks up post-cessation claims.
What questions do PI underwriters ask architects at proposal?
Expect: practice structure and principals; fee income split by sector (residential, commercial, public, industrial, hospitality, education, healthcare); fee income split by project value band; largest project ever done; current and recent projects on higher-risk buildings (BSA-defined); cladding involvement (historic and current); design-and-build novated work proportion; collateral warranty practice; use of net contribution clauses; sub-consultant management; claims and circumstances in five to six years; ARB / RIBA standing. The proposal form for architects has lengthened materially in the last five years.
Should I notify a circumstance if a client raises concerns?
Yes, in most cases. The classic architects’ circumstances are: client raising concern about a defect after completion; contractor disputing a certificate or instruction; a builder going insolvent leaving design questions unanswered; a freeholder or future tenant raising a question about the design; a Building Control issue post-completion; cladding or fire safety related correspondence from any party. Notification preserves cover under the current policy. The Building Safety Act has made notification practice more important — long-tail issues are now far more likely to surface years later.
What should I do if I receive a letter of claim?
Stop responding to the claimant; same day, send the letter to your broker or insurer’s claims team with a brief factual summary; secure the project file including all drawings, correspondence, certificates and meeting notes; do not engage the claimant directly. Construction claims are document-heavy and the integrity of the file matters at every stage. The PI insurer will appoint solicitors (often with construction specialism) to manage the defence; the architect’s role is to support the defence team with full and accurate information.
About Apex Insurance Brokers
Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority, FCA firm reference 724952. Registered in England and Wales, Companies House 07014570. Trading address: c/o QCS, 53 Queen Charlotte Street, Bristol BS1 4HQ. Registered office: c/o Westcan, 5 Anglo Office Park, Bristol BS15 1NT. Email info@apexinsurancebrokers.co.uk, telephone 0117 325 0027. Last reviewed: May 2026.