by Stephen Barnes, Black Cat Co-Founder

At Black Cat Building Consultancy, we talk about professional indemnity insurance a lot. It’s not glamorous. It’s definitely not a quick social post. It’s the quiet promise that sits behind every report, every piece of advice and every project we deliver.

In our latest Black Cat Chat Podcast episode, co-founder Stephen Barnes sits down with Marketing Director Andy Clow and sets out why PI insurance should be front and centre for clients and surveyors alike, and how our approach is built to protect both.

“PI insurance is our promise to clients that our advice is right, compliant and fit for purpose.” Stephen Barnes

PI is Not Public Liability

Some in the market have confused Public Liability with Professional Indemnity. Public Liability deals with physical incidents on site. PI covers the professional output itself, including advice, reports, specifications and designs. If advice is wrong and causes loss, PI is what puts the client back in the position they should have been in.

That is why the scope and quality of the PI policy matters. It is also why exclusions and sub-limits can quietly erode the real protection a client thinks they are buying.

“Most people presume all surveyors’ quotes sit behind adequate PI. They don’t.”

The Problem with Exclusions & Sub-Limits

Stephen highlights two common exclusions that should ring alarm bells:

• Fire – exclusions or low sub-limits on anything from fire doors to compartmentation.
• Basements – widely excluded, yet many UK buildings, particularly in London, have them.

If a firm is not insured to advise on these areas, what is the real value of the report? Clients rarely see policy documents and may never know the limitations unless they ask.

Vague Guidance, Real-World Risk

RICS requires “adequate and appropriate” PI cover. Stephen is clear that, in practice, this phrasing is too vague. Minimum limits often lag behind the values and complexity of today’s assets and programmes. A £1 million limit can be inadequate once you factor in consequential losses.

A practical rule of thumb is proportionality. If you are purchasing a £10 million building or running a multi-million pound project, PI limits need to reflect that exposure.

“Adequate and appropriate PI must be proportionate to the value and risk of the instruction.”

Our Approach at Black Cat

From day one we set out to remove the ambiguity. Each year we work closely with our broker, Daniel Atkinson at Romero Insurance Brokers, to secure a policy with no exclusions and no restrictive sub-limits, and to set limits that match the scale of our clients’ assets and projects.

We Then Do Three Things Internally:

1. 1. Educate the whole team Everyone sees and understands the policy and how it applies to their work.
2. Run a director-led model Two directors on every job. Every output passes both an Admin QA and a Professional QA before it goes to the client as a draft.
3. Train for the market reality When people join us, we review their previous firms’ policies with them. It is an eye-opener. It also helps us explain clearly to clients where gaps often exist in the market.

“We build our business around experienced people and rigorous checks, then back it with PI that has no exclusions.”

A Note on Personal Liability

PI is not only a client protection. It safeguards surveyors too. Cases such as Merrett v Babb (2001) underlined the potential for personal liability if a company fails and adequate PI is not in place. We therefore ensure our policy covers the services we provide, and we build protective clauses into our appointments. No one should ever face the risk of losing a home or livelihood because of a professional mistake.

What Clients Should Ask For

Stephen recommends one simple addition to every request for proposal:

“Please confirm in writing whether your professional indemnity insurance is subject to any exclusions, limitations or sub-limits, and state your limit of indemnity.”

If you ask the question, respondents must answer it. It creates a level field and lets you compare quotes on substance, not just price.

“Alongside your fee, disclose any PI exclusions or sub-limits. Transparency protects everyone.”

What Surveyors Should Do

Every Chartered Building Surveyor should see and understand their firm’s PI policy. Know the limits. Know any exclusions. Operate within them. If your firm provides services under deed, remember the longer obligations to maintain cover at the stated level.

“Do not work on assumptions. Ask to see the PI policy & understand it.”

Setting a Higher Standard

We believe the industry can do better. Clearer guidance, transparent disclosure and proportionate limits would raise standards and reduce risk. Until that happens, we will continue to set our own bar higher, educate our team and clients, and publish the questions everyone should be asking.

If you would like to talk through PI in the context of your assets or programmes, or to sense-check your current approach, we’re happy to help.

Listen to the full conversation on Black Cat Chat: The Building Podcast for practical pointers, real examples and the exact wording to include in your next RFP:

• Youtube 
• Apple Podcasts
• Spotify