RICS PII Updates – July 2025: What’s Changed and Why It Matters

The Royal Institution of Chartered Surveyors (RICS) has introduced updated Professional Indemnity Insurance (PII) rules and minimum wording requirements, which took effect on 1 July 2025. These changes are designed to give greater clarity, improve consumer protection and ensure that regulated firms remain aligned with market practice.

1. Cancellation by insurers

   
   

Insurers can now only cancel a PII policy for non-payment after two steps. First, firms must be given a 30-day grace period from the policy start date to pay the premium. If payment is still not made, insurers must then give a further 30 days’ notice before cancelling the policy.

This change protects firms from immediate cancellation and means that cover remains in place during the notice period. If payment is made before the notice expires, any claims during that time will still be covered. This reduces the risk of a sudden loss of protection for firms and their clients.

2. Cancellation by firms

   
   

For the first time, RICS-regulated firms now have the right to cancel their PII policy by giving 30 days’ written notice. This right only applies in specific situations, such as a merger, a major change in business risk or where an insurer’s credit rating has been downgraded. Refunds on premiums must be calculated on a pro-rata or fair basis, taking into account claims and reserves.

This gives firms more flexibility and control over their insurance, particularly if circumstances change. However, firms must ensure that replacement cover is arranged, as lapses in insurance would leave them non-compliant with RICS rules.

3. Notification of cancellation to RICS

Insurers now have 30 calendar days to notify RICS if a firm’s PII policy has been cancelled. The previous requirement was just 5 working days.

This change provides firms with a longer window to arrange replacement cover before RICS takes regulatory action. It also reduces pressure on insurers by giving them more time to complete the notification process.

4. Automatic consumer run-off cover

   
   

When a regulated firm ceases trading, insurers are now required to provide six years of run-off cover automatically, provided the premium (or part of it) has been paid. There is no additional charge for this protection and no separate notification is needed.

This ensures that clients of a firm that has closed can still bring claims for up to six years after the business has ceased. It removes the uncertainty that previously existed where firms needed to negotiate or request run-off arrangements, strengthening protection for consumers.

5. Fire safety cover

   
   

The minimum wording has been expanded to cover negligent acts, errors or omissions in relation to fire safety, and it now includes internal fire safety components as well as external features. However, full civil liability cover for buildings of five storeys and above has not been reinstated, reflecting ongoing caution within the insurance market.

This change increases the level of protection available to firms carrying out work related to fire safety, an area that has remained highly sensitive since the Grenfell Tower tragedy. While restrictions on high-rise buildings remain, the broadened wording ensures wider cover for many day-to-day surveying and construction projects.

What firms should do next

These changes demonstrate RICS’s focus on consumer protection while trying to maintain stability in the insurance market. Firms should review their existing policies to make sure they meet the new requirements, confirm how their cancellation and run-off provisions operate, and seek advice on the extent of their fire safety cover.

By taking these steps, regulated practices can be confident they remain compliant and properly protected under the new framework.

Speak to our experts

If you would like to understand how these changes impact your business or need support reviewing your current policy, get in touch with one of our PII specialists today. Our team can provide tailored advice to ensure you remain compliant with RICS requirements while securing the most appropriate cover for your firm.