• Protecting your business with personal indemnity insurance – what you need to know Protecting your business with personal indemnity insurance – what you need to know Protecting your business with personal indemnity insurance – what you need to know Protecting your business with personal indemnity insurance – what you need to know Protecting your business with personal indemnity insurance – what you need to know Protecting your business with personal indemnity insurance – what you need to know Protecting your business with personal indemnity insurance – what you need to know
  • Protecting your business with personal indemnity insurance – what you need to know Protecting your business with personal indemnity insurance – what you need to know Protecting your business with personal indemnity insurance – what you need to know Protecting your business with personal indemnity insurance – what you need to know Protecting your business with personal indemnity insurance – what you need to know Protecting your business with personal indemnity insurance – what you need to know

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Protecting your business with personal indemnity insurance – what you need to know

Online since 28.01.2017 • Filed under Editorial • From Volume 5 - 2017
Protecting your business with personal indemnity insurance – what you need to know

Architectural professionals performing architectural work are legally obliged to be registered with the South African Council for the Architectural Profession (SACAP) and accordingly abide by the professions’ Code of Conduct.

 

One of the many benefits of investing into professional registration is that you enjoy good standing and the trust of financial service institutions.


This, in particular, from insurance companies who cover your Professional Indemnity (PI) and from banks who trust that registered professionals are competent to carry out claims and documentation with regards to draws against building work completed. Considering various calls for clarity received by SACAP’s Professional Fees Committee, it is apparent that not all principals running practices are aware that by working with un-registered persons in their teams they risk their PI insurance company dismissing a claim they may one day need to submit, says Marella O’Reilly, SACAP’S Registrar and CEO. SACAP guides registered persons on the parameters governing how they charge clients and professionally indemnify themselves when performing architectural work.


The risk faced by those principals lies in the fact that professional indemnity insurers require in their policies that when a principal agent takes out insurance for a comprehensive scope of work, that all the work identified as  being included and covered within that policy is performed by registered professionals. Insurance companies may

choose not to pay out a claim when they investigate and find that the principal and all the practice’s team members performing architectural work on that project are not registered with SACAP.


Insurance companies and the public at large may verify the registration status of any architectural professional on SACAP’s website. ‘We are also aware that not all registered professionals are adhering to Rule 4.1 of their professional Code of Conduct (Board Notice 154 of 2009). This outlines that they shall only undertake to perform architectural work where they have clearly set out in writing the terms of the appointment, which must, among other things, include details of the professional indemnity insurance,’ says O’Reilly.


‘We therefore encourage practice principals to mitigate against financial risk by abiding by the Code of Conduct and at the same time join our Council in pursuing excellence for our vision of a people-centred architecture for South Africa,’ she adds.


SACAP

T +27 (0)11 479 5000

F +27 (0)11 479 5100

E info@sacapsa.com

W www.sacapsa.com

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