Professional Indemnity Insurance

This requirement ensures that your business is protected against compensation sought by a client if you have made mistakes or are proven to have been negligent in some or all of the services that you provide for them. PII cover will also provide cover for fidelity (staff dishonesty) and any legal costs.

Your PII cover must meet the UKALA minimum limits of indemnity for it to be acceptable to us and must include provision for cover:

• that is on a civil liability basis
• that includes claims arising from dishonesty and fraud up to the full limit of indemnity
• that provides indemnity arising out of all work carried out since inception of the business
• that provides cover for liability arising out of all aspects of your business, not just lettings and property management

The minimum limit of indemnity must be:

• £250,000 for members whose fee income in the last financial year did not exceed £500,000
• £500,000 for members whose fee income in the last financial year exceeded £500,000 but was not more than £1,000,000
• £1,000,000 for members whose fee income in the last financial year exceeded £1,000,000

The uninsured excess shall not be more than 2.5% of the limit of indemnity or £10,000 whichever is the greater.

Please note:

• If you are a current UKALA Member and have already renewed your Professional Indemnity Insurance cover in readiness for your 2011 Membership renewal then UKALA will accept a lower sum insured of £100,000 for this year only.
• All new and future renewal applications must meet the minimum sum insured according to the level of your annual fee income.
• If the applicant is authorised and regulated by the Financial Services Authority (FSA) then their minimum limit of indemnity should comply with the minimum Professional Indemnity Insurance cover required by the FSA.

Are you currently covered for Professional Indemnity Insurance that meets the UKALA membership requirements outlined above and includes dishonesty or fraud by an employee and that covers Client Money as well as pecuniary loss to the actual business?

We are pleased to advise you that Hamilton Fraser Insurance, our partner insurance
brokers, have arranged a special scheme to provide the PII cover that UKALA require for their members. Clicker here to download more information.

Summary of cover PII for UKALA - pdf document

UKALA PII proposal form - pdf document