RICS draft guidance note - Risk, liability and insurance, 3rd edition

Risk, Liability and Insurance - 3rd edition

1 Introduction

1.1 Scope and purpose

1.1.1 RICS has a responsibility, under its Royal Charter, to maintain standards in surveying services in the public interest. It is important to maintain the usefulness of the surveying programme for the public, to ensure the profession is diverse and sustainable, and the risk associated with providing professional advice and services is properly identified, fairly apportioned and properly managed.

1.1.2 This guidance note is intended to assist both members and their clients to understand the main risks and liabilities associated with professional services provided by RICS members. It guides members in the negotiation of equitable contracts with clients and the avoidance of major risks and pitfalls.

1.1.3 RICS recommends that members take a fresh look at the way in which they conclude contracts with their clients. Members are encouraged to revisit their own standard terms and conditions, and the basis upon which they engage with their clients, in light of this guidance note.

1.1.4 After considering this guidance and the appendices to it, members may decide to take advice on specific aspects of their practice from their insurance brokers and/or legal advisers.

The document does not extend to providing guidance on quality assurance issues; that is the role of sector specific standards, for example RICS Valuation - Global Standards (Red Book Global Standards).

Members' attention is also drawn specifically to RICS standards on professional behaviour, in particular the RICS Rules of Conduct and the current edition of RICS Conflicts of interest professional statement.

  • All regulated firms need to ensure they have adequate and appropriate professional indemnity insurance in place that complies with the requirements of the RICS Rules of Conduct and the RICS Minimum Terms. See also Professional Indemnity Insurance requirements, Version 7, 2020:

1.2 English law/Scots law

This guidance is based primarily on English law. Some key differences in Scots law are identified but members are recommended to take specialist advice on issues of Scots law. Similarly, although Northern Ireland law is very alike to English law, firms in Northern Ireland are recommended to take specialist advice on issues of Northern Ireland law.

1.3 Effective date

This Guidance Note takes effect from 1st April 2021.