To ensure the availability of professional indemnity insurance (PII) the RICS has a market facility, the Assigned Risks Pool (ARP).
The ARP is open to all UK RICS regulated firms that are unable to obtain PII, which meets the minimum requirements of the RICS, in the insurance market, further information on our requirements is available here.
The ARP is collectively underwritten by all RICS Listed Insurers and managed on behalf of insurers and the RICS by Miller Insurance Services LLP.
All RICS UK registered firms are eligible for terms from the ARP.
Firms may be unable to obtain PII for a variety of reasons and the inability to obtain terms in the insurance market is not necessarily a reflection on your firm. If you are unable to obtain, or are having difficulty obtaining PII on the open market then you should apply to the ARP.
We would recommend any approach is made 14 days prior to the expiry date of your policy.
In order to apply for entry to the ARP, you or your broker will need to:
To discuss the ARP in more detail, please contact the RICS ARP Manager: firstname.lastname@example.org.
On receipt of the application the ARP manager will assess the submission and liaise with insurers and the ARP Panel to provide terms. The ARP can provide terms up to a limit of indemnity of £1,000,000 and there are two ways in which the ARP can provide terms.
Option 1. Full Period
Where possible the ARP will provide terms on a 12 month basis on an aggregate plus unlimited round the clock reinstatement basis (which means that the policy limit will reinstate for any unrelated claim after the erosion of the total limit purchased).
Option 2. Provisional Period
In certain circumstances it may not be possible to provide terms on a 12 month basis and in such circumstances firms will be accepted into the ARP for a Provisional Period of Admission (a minimum of 120 days) and the policy limit will be on an aggregate basis only (which means this is the total amount the policy will pay for all claims)
During the provisional period a Business Review will be undertaken by the RICS which encompass an audit of work, review of risk and compliance and a business review. The business review will be at the cost of the firm and will be used by the ARP panel in their assessment of terms for the subsequent period remaining 8 months of the policy.
When your business ceases, you will still require PII insurance. This is because PII is provided on a claims made basis and insurance is require for claims made after your business has ceased arising from services undertaken prior to ceasing.
RICS requires that firms have ‘adequate and appropriate’ run-off cover, meaning a minimum of six years for consumer claims (insurers will provide £1,000,000 aggregate limit automatically in the minimum policy wording) and cover for commercial claims - we would normally expect cover for six years after closure.
PII market practice is for the insurer who last covered your risk to provide annual run-off cover and they should be approach in the first instance
Where the insurer does not provide run-off cover, the RICS has a market facility, the Run-off Pool (ROP). The ROP is collectively underwritten by all RICS Listed Insurers and managed on behalf of insurers and the RICS by Miller Insurance Services LLP.
All RICS UK registered firms are eligible to apply for run-off terms from the ROP. Whilst the ROP will consider all applications it is not obliged to provide terms in all circumstances.
To discuss the ARP in ARP in more detail, please contact the RICS ARP Manager: email@example.com.
On receipt of the application the ARP manager will assess the submission and if it meets the criteria of the ROP provide a quotation. The ARP can provide terms for a 12 month period for a policy limit of up to £1,000,000 aggregate (which means this is the total amount the policy will pay for all claims).
To discuss entering the ARP run-off pool for commercial claims cover, please contact the ARP manager: firstname.lastname@example.org.