RICS PII minimum limit: the turnover-band scale explained

Reviewed by Apex Insurance Brokers · Last reviewed 2026-07-06

Under RICS's PII requirements (Version 11, in force from 1 July 2025), the minimum limit of indemnity depends on the firm's turnover in the previous year: £250,000 for £100,000 or less, £500,000 for £100,001 to £200,000, and £1,000,000 for £200,001 and above. There are only these three bands, and the minimum never rises above £1,000,000, however large the firm. Unlike the solicitors' regime, which sets a flat floor (£2m or £3m), the RICS minimum steps up with turnover. This entry sets out how the scale works and how brokers advise firms to size above the compulsory floor.

Why RICS uses bands rather than a formula

The band structure was designed to smooth the transition for firms as they grow. A pure formula — 2.5× turnover, for example — produces limit increases in lock-step with turnover, and can generate awkward mid-year adjustments as a firm's turnover crosses a threshold. A banded scale allows firms to sit stably within a band and step up when they cross a defined threshold at renewal. It also allows the RICS to align the scale with the risk profile of the surveying profession at each turnover tier rather than assuming linear scaling.

How the scale works in practice

The scale has three bands, and every band has a specific minimum limit attached. Cover must be on an any-one-claim basis, or aggregate with unlimited round-the-clock reinstatement; asbestos, pollution and fire-safety cover may be on a plain aggregate basis. The transition happens at renewal — a firm whose turnover has crossed a band boundary in the completed financial year should size the coming policy year's limit to the higher band. Firms whose turnover has fallen may in principle reduce the limit to the lower band's floor, though in practice the historical exposure carried forward makes that unwise for any firm with a meaningful back-book.

What counts as turnover

The RICS Requirements use "turnover" to mean gross fee income for surveying services provided in the last completed financial year. Pass-through disbursements (search fees, planning application fees paid to a local authority, third-party specialist reports commissioned on behalf of a client) do not count. Referral fees received from third parties for work introduced elsewhere do count where they are earned by the RICS-registered firm. VAT is stripped out. Where a firm operates alongside a non-RICS subsidiary — an unregulated property management arm, for example — only the fees attributable to the RICS-regulated entity are captured. Firms that have restructured during the year should recalculate carefully; the "last completed financial year" figure may not represent the current risk profile.

The floor

Smallest practices sit at the bottom of the scale. A firm with turnover of £100,000 or less needs at least £250,000; from £100,001 to £200,000 the minimum is £500,000. That is a floor, not a target — even a small residential survey practice can generate a claim in the £100,000 to £500,000 range through a missed defect or a mis-valuation on a purchase, and the compulsory minimum may sit close to realistic single-loss exposure. Sizing above the floor is often warranted.

The mid-band

Every firm with turnover above £200,000 needs at least £1,000,000, whether it turns over £300,000 or £5 million. This is the band where sizing above the compulsory floor tends to matter most — the compulsory minimum starts to look thin against the largest engagements a firm of this size takes on, particularly for building surveyors with dilapidations, expert witness work, and Red Book valuation exposure. Broker recommendations for firms in this band commonly land in the £3 million to £5 million range.

The upper band and the ceiling

The compulsory minimum stops at £1,000,000 for every firm with turnover above £200,000, so a very large firm does not carry a larger compulsory minimum. Firms above the ceiling should treat the compulsory minimum as irrelevant to their sizing decision and work directly from realistic single-loss exposure and claims history.

Sizing above the compulsory minimum

The sizing exercise for RICS firms follows the same logic as for other professions: identify the largest single realistic loss on the current book (usually a Red Book valuation, a dilapidations schedule, or a building survey on a substantial commercial property), review the last six years of claims and notifications for severity distribution, and layer accordingly. RICS firms with expert witness work, adjudication work, or party wall work should also factor in the litigation exposure attached — a claim on an expert report can generate quanta far above the fee earned.

Worked example

Illustrative only. A four-partner mixed practice, £1.8 million turnover, 60% commercial building surveys, 25% Red Book valuation for lenders, 15% party wall matters. Under the scale, the compulsory minimum is £1 million, because turnover is above £200,000. Broker recommendation given the Red Book lender-valuation exposure: £3 million primary layer with an explicit endorsement for cover on lender-instructed valuations, plus a £2 million top-up layer for a £5 million tower. The compulsory floor is met, and the tower is sized to the largest realistic loss on the Red Book book.