Case Study Architects

Professional Indemnity insurance is an important part of many professionals' business risk management.
We asked successful professionals in key sectors about their business, and where PI fits into the work they do.

Bernard Howells BA(Hons) DipArch RIBA, partner, Clifton Design Associates

What does your business do?

We are an Architect’s Practice based in Brighton. We carry out very diverse work across the South East region, usually within a contract size of £50,000 to £1,000,000, taking the work from feasibility to completion or any stage in between. We have experience working for hotel groups and the leisure industry, nursing homes, social services, community groups and social housing. We also work with people on their own homes for new build and conservation projects.

What kind of risks do you have to think about in the day-to-day running of your business?

The risk areas relate to issues of competence. To avoid risks, we ensure that we keep up to date with CPD (Continuing Professional Development) and other construction industry matters and legislation that comes into being, and follow the advice of the RIBA (Royal Institute of British Architects) as issued in its monthly bulletins. Essentially, it's a case of practicing in a competent manner, which I believe becomes instinctive.

How did you find the right level of Professional Indemnity Insurance cover when you set up your business?

I set up the business in 1983 and, as I had previously been a partner with a practice and had insurance, that experience made it easy for me to manage our PI cover. In fact, I used the same brokers to get a policy in place.

What are the key benefits of PI cover for architects?

If the design work is for a project of low commercial content and with clients you have done business with in the past, the question of negligence is not uppermost in your thinking. However, when doing work with people you've hardly met before, PI and collateral warranties are at the front of your mind and have to be addressed in order to allow the creative process to proceed.

What aspects of your business or services that you provide are most open to risk?

We have to design a product that is suited to its purpose and that has to be well-defined before we start. We have a duty to design in a manner that can be built safely. The nature of the commercial work we do is such that the risk is low and our experience allows us to simplify the solution so the risk is manageable. We have never been sued.

What are your customers' greatest concerns, and how does PI help protect your reputation?

Time, cost and appropriateness of the building solution are the key issues. By the planning stage we and the client know that we've got it right and, when it comes to the actual building, working within budget tends to be the main concern. As PI is mandatory, not many clients ask if we have it, although a few new clients do check as a formality to tick the box. But it is very important and it would be absolutely stupid to practice without cover.

What's the most interesting case of a negligence claim or horror story you've heard of in your industry?

I don't tend to turn to those pages in the journals! We once made a claim against a client for late payment and the client in question then made a counter-claim for negligence, which went to the High Court. Going through that process was a fascinating experience. We won the case!