Insurance for Architects

Yes, practising architects must have Professional Indemnity insurance to receive a licence in most Australian states and territories. Minimum levels of Professional Indemnity are generally required to register as an architect. Check you state or territory registration board to understand the insurance requirements in your area.

Generally speaking, Cyber Liability insurance is not required to register as an architect or become licensed. However, it can be an important type of cover for this occupation.

Architects often perform business activities that may put them at risk of a cyberattack or data breach. These may include such things as storing client information on internet-connected devices or in the cloud, taking on high-paying contracts, and working with contractors or sub-contractors. Cyber Liability insurance helps cover financial losses and repair to your reputation if a cyberattack or data breach impacts your business.

Architects may be required to have minimum amounts of Professional Indemnity insurance to practice in their state or territory. For example, architects in Tasmania and Western Australia must have a minimum of $1 million in Professional Indemnity cover. Some clients may require architects to have to minimum levels of Professional Indemnity and/or Public Liability insurance to work with them. Insurance requirements are often written into project contracts. If you work as a contractor or subcontractor, your work contract may also require certain types and levels of cover.

Run-off cover is a policy provision that can help protect architects for a set period after they have retired, sold their business, or ceased trading. It is typically offered with Professional Indemnity insurance policies.

Run-off cover can be very important for architects, as design issues and defects may take years to discover. That means, you could face a claim long after a design project is complete.

Professional Indemnity insurance is known as ‘claims made’ cover, which means you need your Professional Indemnity insurance to be in place when a claim is made against you. A claim is only covered if it is notified to your insurer while the policy is active. You cannot make a claim after you policy has lapsed.