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Professional indemnity explained
Fire safety and cladding cover is the part of an architect's PI that responds to claims about fire safety, external walls and cladding, often on restricted terms. It matters because former Wren members now buy it from commercial insurers, where these terms vary widely.
Part of: Architects' PI insurance
In short
Commercial PI insurers commonly restrict fire safety and cladding cover for architects, through full exclusions, aggregate sub-limits, defence costs inside the limit or carve-backs for named projects. ARB's PII guidance accepts aggregate cover for fire safety and cladding claims, possibly limited to direct losses, where there is no alternative. The Wren said it had continued to give its members cladding cover that was not generally available; its 2024 report shows that cover capped at £5.0m in the aggregate per member per policy year. The Building Safety Act 2022 lengthened limitation for Defective Premises Act claims, so past work stays exposed for longer.
Fire safety and cladding cover is usually available in the commercial market, but rarely on the same terms as general negligence cover. Architects Datafile reported that cladding cover is available but that "scrutiny is intense", and Trowers & Hamlins warned of narrower protections, particularly around fire safety. Expect underwriters to ask detailed questions about past and current work and to shape the cover around the answers.
The Wren said in its March 2026 statement that until 2025 it continued to provide cover to members for cladding claims that was not generally available. Its Solvency and Financial Condition Report to 30 June 2024 shows that cover was capped at £5.0m in the aggregate per member per policy year. So even within the Wren, cladding cover was limited.
| Approach | What it usually means | What to check |
|---|---|---|
| Full exclusion | No cover for claims arising from fire safety, cladding or external wall systems | How widely the exclusion is drafted, for example whether it reaches compartmentation or means of escape |
| Aggregate sub-limit | One total limit for all such claims in the policy year | The amount, and whether it sits inside or alongside the main limit |
| Defence costs inside the limit | Legal costs reduce the amount left for damages | How quickly a long dispute could use up the sub-limit |
| Project carve-back | Cover restored for named projects or types of work | Which projects are named and on what conditions |
| Direct loss only | Consequential losses, such as lost rent, excluded | Whether your appointments promise more |
| Retroactive restriction | Fire safety cover only for work after a set date | What earlier projects this leaves out |
Background on these structures is in cladding and fire safety exclusions in PI, aggregate vs each and every claim limits and defence costs inside vs outside the limit.
ARB's guidance on professional indemnity insurance (published 19 June 2025) sets a minimum of £250,000 on an each and every claim basis. It says it is acceptable to hold cover on an aggregate basis for claims including fire safety and cladding, that such cover may be limited to direct losses from a negligent act, and that these restrictions should only be accepted where there is no alternative. It also says an architect who followed the guidance but lost cover because insurers stopped offering it will not face regulatory action because of it.
Section 135 of the Building Safety Act 2022 inserted section 4B into the Limitation Act 1980. Claims under section 1 of the Defective Premises Act 1972 now have 15 years, and 30 years where the right accrued before the section came into force on 28 June 2022. That keeps older residential work exposed, which is one reason insurers look closely at legacy projects. See the section 135 extension and our architects BSA impact report.
Larger practices often buy a primary policy with one or more excess of loss layers on top. Fire safety terms need to line up across them. A primary policy may give a fire safety aggregate sub-limit while an excess layer excludes fire safety entirely, so the practice's real protection for these claims is the sub-limit alone, whatever the headline programme limit says.
Aggregation also matters. Fire safety claims can come in groups: several flats in one building, or several buildings using the same system. How the aggregation clause links related claims decides whether one limit or several apply, and whether one excess or several are paid. With an aggregate sub-limit, a group of claims in one year can use up the whole amount.
Finally, check how the policy defines fire safety. Some wordings refer only to external wall systems and cladding; others cover any fire safety aspect of design, including compartmentation, fire stopping, means of escape and fire strategy. A narrower definition leaves more of the practice's work on full terms. Where an insurer will not move on the definition, it is worth asking whether a carve-back for lower risk building types is possible, subject to the insurer's appetite.
Illustrative example 1: a practice is offered a £10m each and every claim limit, with a £2m aggregate sub-limit for fire safety and cladding, defence costs included. Two disputes about the same type of facade arise in one year. Legal costs on the first use part of the sub-limit, leaving less for the second.
Illustrative example 2: a practice that designed several residential buildings over 18 metres before 2015 shares a full schedule with heights, roles, systems specified and current remediation status. The insurer offers fire safety cover with a carve-back for later projects designed under a documented peer review process, and an exclusion for two named older schemes.
Illustrative example 3: a practice that mainly does interiors confirms it has no external wall work. It still finds a broad fire safety exclusion would catch its compartmentation and escape route design, and asks for a narrower definition limited to external wall systems.
A broker writing for NLA, advised members to explain their risk management "particularly around fire safety and legacy exposures". A clear presentation also meets the fair presentation duty. Underwriters commonly want:
Start early, review exclusions across every layer of the programme, and read our guide for former Wren members and architects PI insurance guide.
Apex arranges architects' PI and reviews fire safety terms across primary and excess layers; a broker reads every enquiry.
Usually yes, but often with restrictions such as an aggregate sub-limit, defence costs inside the limit, direct loss only, or exclusions for named projects. Architects Datafile reported that cladding cover is available but scrutiny is intense. Terms depend heavily on the practice's past and current work and how it is presented.
Yes. ARB's PII guidance accepts aggregate cover for claims including fire safety and cladding, which may be limited to direct losses, and says such restrictions should only be accepted where there is no alternative. The general minimum remains £250,000 each and every claim.
The Wren said it continued until 2025 to provide members with cladding cover that was not generally available. Its Solvency and Financial Condition Report to 30 June 2024 shows that cover was capped at £5.0m in the aggregate per member per policy year.
It depends on the claim. Under section 4B of the Limitation Act 1980, added by the Building Safety Act 2022, Defective Premises Act section 1 claims have 15 years, or 30 years where the right accrued before 28 June 2022. Contract, deed and negligence claims have their own periods.
Send us your current schedule and wording, your last Wren policy documents and your project list. We will check continuity for claims on past projects, fire safety terms and your contract obligations ahead of your first open-market renewal. No fee and no obligation. Or call 0117 325 0027.
Book a PI programme review Get a quoteApex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales, company number 07014570. This page is general information, not advice on your individual circumstances, and it does not guarantee that cover will be available or on what terms.
