What do the Membership Categories mean in terms of PII compliance under the Scheme?
The Monetary Ceiling (maximum amount of liability) for the purpose of limitation of liability under this Scheme is to be determined according to the following Categories:
- Category 1 – Real Property Valuation
- Category 2 – Low-Risk Valuations (LRV) work only,
- Category 3 – Plant, Machinery and Equipment Valuations (P&M): and
- Category 4 – Other Occupational Services (OOS)
In relation to Category 1, Each valuation/assessment will have its own monetary cap in the event of a successful claim. The minimum level of PII coverage required under the scheme will be based on the highest Assessed Value of a category 1 valuation (depending on how your policy is structured there may be an additional requirement to cover defence costs).
- Members providing professional services in the following categories can cap any claims arising from their work to $1M, and are required by the scheme to hold a Minimum PII coverage of $1M (or $1.5M depending on how your policy is structured)
Please note – If you are seeking to reduce your PII coverage based on your new cap, please ensure to obtain independent legal/financial/insurance advice before you do so. If the PII coverage sought is lower than a cap that your firm has had in the past, you may not be able to rely on the Scheme to cap your liability in the event of a claim.
You will need to be comfortable that any claim made against you or your firm will not exceed the PII coverage sought. For this reason, the APIV strongly recommends that you consider keeping the higher PII coverage for at least 7 years.