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Given the risks posed to architects, the best protection for any professional in the construction industry is still their own professionalism. Even so, it is inevitable that mistakes will occur or be alleged.
‘Professional indemnity (PI) insurance provides financial cover in the event of an architect’s error or omission, or failure in the performance of their professional duty.’ Board of Architects NSW
It is not necessarily unprofessional to make a mistake, but it is arguably unprofessional not to have a well-managed, realistic insurance policy in place to respond when mistakes occur or are alleged. For architects practicing anywhere in Australia, it is mandatory by law to have professional indemnity (PI) insurance, as a sole trader or coverage by a practice with a nominated architect.
A key regulatory requirement for practising architects is the maintenance of Professional Indemnity Insurance (PII), which provides coverage against claims arising from professional negligence. If an architect experiences a change in employment circumstances that results in a lapse or absence of PII coverage, it may be necessary to apply for a change in registration status—from ‘practising architect’ to ‘non-practising architect ’— for the duration of the uninsured period.
In Australia, as an architect, the protocol for notifying your relevant Board when employment circumstances change i.e. ceasing employment, temporary periods between employers, or transitions to new employment, varies. Notification protocols and associated timeframes vary across states and territories, and failure to comply may result in financial penalties.
Architects are advised to consult their respective state or territory registration Board to ensure compliance with notification requirements and to maintain appropriate registration status in accordance with their professional circumstances, as an example the NSW Board of Architects has a Fact Sheet on Professional Indemnity Insurance requirements and exemptions Factsheets
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