As outlined in the global RICS Rules of Conduct Appendix A: Professional obligations to RICS, ‘RICS-regulated firms must ensure that all previous and current professional work is covered by adequate and appropriate professional indemnity cover that meets the standards approved by RICS’.
RICS requires RICS-regulated firms in the UK and Republic of Ireland to meet further detailed PII cover, which meets the minimum terms required by RICS. This page outlines information on those requirements and further detail is provided in the links at the bottom of this page.
The current system for PII is that each member firm is required to purchase a policy, usually on an annual basis, in accordance with the Approved RICS Minimum Policy Wording. PII must be provided by a RICS Listed Insurer. A Listed Insurer is one that has agreed to provide cover in accordance with the Approved RICS PII Requirements and Minimum Policy Wording, has a minimum security rating and that subscribes to the Assigned Risks Pool (ARP), the scheme for members who are unable to get PII in the open market.
2025 Update
Following a public consultation undertaken from 27 February to 4 April 2025, 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.
The consultation sought views on proposed amendments to key areas of insurance coverage for RICS-regulated firms operating in the UK and Ireland. The final changes, informed by stakeholder feedback, affect the following areas:
- Any one claim coverage
- 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
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. Further detail on the updated requirements, including the new Minimum Policy Wording and a full response to the consultation feedback, is available in the link below.
A summary of the changes in each of these areas is provided below. A full response to the consultation, including RICS’ conclusions and next steps, is available in the document linked at the bottom of this page.
Any one claim coverage
RICS has decided to retain the existing approach, which allows both ‘any one claim’ and aggregate cover under certain conditions. While the consultation explored moving to a single ‘any one claim’ model, strong feedback from insurers and brokers highlighted the risk of market disruption. RICS will continue to monitor market conditions and may revisit this issue in future.
Cancellation of PII policies by insurers
From 1 July 2025, a new cancellation clause will be introduced into the Minimum Policy Wording to improve clarity and consistency. The clause allows cancellation for non-payment of premium only after a two-stage process: an initial 30-day payment period followed by a 30-day cancellation notice. This change aligns with market practice and ensures fair notice and continued claims protection during the notice period.
Cancellation of PII policies by RICS regulated firms
From 1 July 2025, the Minimum Policy Wording will include clearer provisions outlining the circumstances in which RICS regulated firms may cancel their PII policies. While cancellation has been permitted in practice, these changes formalise the process, allowing cancellation with 30 days’ notice in defined situations such as: material risk changes; firm mergers; insurer credit downgrades; or mutual agreement. This is subject to replacement cover being in place. The update enhances transparency and consistency while maintaining appropriate safeguards.
Notification to RICS of cancellation of policy
From 1 July 2025, the notice period for insurers to inform RICS of a policy cancellation will increase from five working days to 30 calendar days. This change, implemented through the Listed Insurer Agreement, strengthens regulatory oversight and gives firms more time to arrange alternative cover, while avoiding changes to the policy wording itself.
Consumer run off
From 1 July 2025, RICS is introducing clarifying amendments to the consumer run-off provisions in the Minimum Policy Wording. These confirm that six years of consumer run-off cover will apply where payment (or part payment) of the premium has been made. The wording also clarifies that this applies specifically to consumer run-off, ensuring regulated firms understand that business-to-business run-off cover must be purchased separately. These changes enhance clarity and help protect consumers.
Fire safety
From 1 July 2025, RICS has updated the Minimum Policy Wording to clarify that, where applicable, certain fire safety coverages relate specifically to negligent acts, errors, or omissions. This addresses insurer concerns and avoids confusion. The definition of fire safety has also been revised to explicitly include internal fire safety components, reflecting current market standards. While full civil liability coverage for buildings five storeys and above is not reinstated at this time, RICS will continue to monitor market and regulatory developments.
Downloads
Published date: 01 July 2025
Published date: 01 July 2025
Published date: 01 July 2025
Published date: 01 July 2025