PI insurance for start-up architectural practices — the ARB-compliant first year
Opening a new architectural practice requires PII ‘adequate’ to the risk under ARB Standard 8. There is no fixed minimum limit as with the SRA MTC — the standard is qualitative. Building Safety Act 2022 s.135 adds material weight to the sizing conversation for anything touching higher-risk buildings.
The ARB requirement
ARB Standard 8 requires PII ‘adequate’ to the practice. There is no fixed minimum limit. ARB does not publish detailed underwriting criteria; the standard is qualitative and enforced through ARB investigation where there is a specific complaint or a firm response to a claim.
In practice, most start-up practices carry £250,000 to £1,000,000 for residential-only work, and £1m to £5m for commercial or higher-risk building work. The BSA 2022 has raised the effective floor for anything touching higher-risk buildings.
Building Safety Act 2022 s.135 — new firm implications
Section 135 of the BSA extended the limitation period for negligence claims relating to higher-risk buildings to 30 years for past acts and 15 years going forward. A new practice designing higher-risk buildings acquires a very long tail of potential liability from day one.
PII must respond to acts up to 30 years old for buildings completed before June 2022; 15 years for buildings completed after. Run-off cover requirements therefore need long tails.
Practice-area rating
- Residential-only, non-BSA — the lowest-friction start-up profile.
- Small commercial — office fit-out, retail, restaurants — slightly higher rating.
- Higher-risk buildings under BSA (>18m or >7 storeys with residential) — higher rating, longer-tail exposure.
- Principal Designer role under BSA 2022 — specific PII underwriting question.
- Contract-administrator or CDM Principal Designer — broader duty scope.
- Design-and-build sub-consultant or novated designer — different market appetite.
Run-off from the previous employer
A departing architect from an existing practice continues to enjoy PII cover under the old practice's policy for prior acts done there, provided the old practice maintains PII. There is no mandatory ARB run-off requirement equivalent to the SRA six-year rule — but the previous practice is expected to hold PII ‘for a reasonable period after cessation’ under ARB standards.
Confirm: (1) prior acts at the old practice are captured under the old practice's policy; (2) old practice will maintain PII for the relevant tail; (3) whether the departing architect is named on the old policy specifically.
First-year sizing
- Turnover estimate for year 1 — drives the base premium.
- Building types — residential (which sub-type), commercial, higher-risk.
- Fee-generation basis — percentage of construction cost, fixed fee, hourly.
- Principal Designer role under BSA — yes/no with related fee income.
- Personal claims history of the founding architect(s).
- Cover limit choice — qualitatively adequate for the practice profile.
What a start-up premium typically reflects
The market prices a new architectural practice against turnover, building types, BSA exposure and principal claims history. Sole-principal residential-only practices sit at the low end. Practices doing higher-risk building work or Principal Designer roles sit materially higher.
Apex quotes what the market returns after a proper presentation. Avoid template quotes without a full profile.