Improving Your Risk Profile

How can I improve my risk profile to generate a better result for my PI Renewal?

The Australian Institute of Building Surveyors and BRIC have been working collaboratively to develop ways to reduce the risk profile of the building surveying profession and thereby improve the outcomes derived from the insurance market

One immediate impact is our promotion with Insurers of the value of the AIBS accreditation status.

Insurers now recognise this and are willing to consider risks where the individuals of your business are each accredited with the AIBS and where possible, the corporate entity or partnership is also accredited. Without such accreditation they may not consider accepting the risk at all.

BRIC also provide the following Risk Management tips for you to consider on how you can improve your risk profile: -

Client Engagement

Make sure you have a written contract for every project setting out your Terms and Conditions and which clearly articulates the role you are engaged to perform. The AIBS has developed model terms and conditions for each State and Territory and we encourage you to adopt these; Include financial limits on your liability; include an indemnity in your favour and exclude consequential losses;

Client Selection

Examine your client base to identify if you have an overdependency upon a single client or a few select clients. Such dependency can be dangerous from a business continuity perspective or produce an environment where undue influence can be exerted covertly;

Use of Sub Consultants

How do you engage with sub-consultants? What contractual arrangements do you have with them? Do these contractual arrangements mirror those you have with your clients? How do you ensure such subconsultants fulfil their obligations on your behalf? You are responsible for their actions and hence you need to impose the same disciplines upon their business as you do your own;

Record Keeping

What types of records do you maintain and for how long? What backups are used? How readily accessible are these? Are they stored offsite? If you have an allegation made against you, substantial records are a solid defence;

Internal Controls

Do you employ peer review of your work? Do you have formalised steps which must be satisfied before a project can be approved or proceed to its next stage? What internal processes do you adopt to ensure your internal workings manage the risk of your profession? How do you manage the approval of alternative design solutions?

Remote Working

Even more importantly in these strange times is your ability to maintain the quality of your work when you have employees working remotely; How is this managed? Do you ensure they have an appropriate working environment from an Occupational Health & Safety aspect?

Fee Management

How do you set your fees and what credit control measures do your employ to ensure you are paid for the work you do? Do you ensure your sub-consultants receive a reasonable fee for their services or do you think that their fees are so inexpensive to be unbelievable? Remember a cheap job may be just that; leaving you to pay the claim later.

 

These are just some of the more obvious areas for you to focus upon in developing or modifying your risk management plan. Each renewal we are now asking for details of what you are doing in these areas.  So, get prepared now!

 

 
 

BOVILL RISK & INSURANCE CONSULTANTS

Specialist Insurance Brokers