The RICS Standards and Regulation Board (SRB) has approved a series of changes to the RICS PII Requirements and associated Minimum Policy Wording. These changes take effect on 1 July 2025 and follow a public consultation earlier this year. Following the consultation, several issues were identified: • Move back to Any one claim coverage limit as a minimum • Cancellation of PII policies by insurers • Cancellation of PII policies by members • Notification to RICS of cancellation of policy • Consumer run-off coverage • Fire safety coverage As RICS states, “These amendments are intended to strengthen protections for clients and consumers, ensure greater clarity for regulated firms and insurers, and align the PII framework with emerging risks and market practices.” A summary of the key changes to certain topics is provided below: • Cancellation (Insurer): 30-day payment window + 30-day notice (calendar) • Cancellation (Firm): 30-day notice + pro-rata refund tied to claims • RICS Notification: 30-day insurer notice to RICS ahead of policy cancellation • Consumer Run-Off: Auto 6 year cover, no extra charge • Fire Safety: Clarified “negligence only” scope; added internal coverage Nathan Marsh – PI Account Executive here at Bridge – highlights four key topics that businesses need to consider: 1. Automatic run-off cover of up to £1 million in aggregate is provided over a six-year period. The updated wording confirms that this applies specifically to consumer run-off, making clear that firms undertaking business-to-business work must arrange separate run-off cover. Insurers are required to provide automatic run-off cover where full or partial payment has been made. 2. For some firms, the aggregate limit of indemnity with unlimited reinstatement will remain available. However, it is advisable to discuss with your broker the possibility of moving to an “any one claim” basis. 3. Fire safety cover for buildings of five storeys or more is included under the RICS minimum terms, but solely in respect of claims arising from negligent acts, errors, or omissions. These claims will be subject to a retroactive date of 1 July 2024, meaning that professional services undertaken prior to this date will not be covered under the minimum terms. Firms may nonetheless be able to negotiate broader cover with their broker, provided they can demonstrate robust risk management practices. 4. The definition of fire safety has been updated to explicitly include internal fire safety components, aligning the wording with current market standards. You can read more about the RICS updates here - https://www.rics.org/regulation/regulatory-compliance/professional-indemnity/pii-in-the-uk You can also contact Nathan - Nathan.marsh@bridgeinsurance.co.uk - to discuss what your business might need to do to maintain compliance.

Posted by Bridge Insurance Brokers at 2025-08-04 09:29:10 UTC