For surveying professionals, maintaining high standards is an important part of protecting clients. It also helps with managing risk and building confidence in the profession.
The Surveyors Australia Professional Standards Scheme provides a framework designed to strengthen professional standards across the surveying industry. Furthermore, it provides participating members with an important additional layer of protection.
But what exactly is the Scheme, how does it work, and what could participation mean for your surveying practice?
Understanding the Professional Standards Scheme
The Professional Standards Scheme is a legal instrument established under the Professional Standards Act 1994 and approved by the Professional Standards Councils.
At its core, the Scheme has two complementary objectives: to support the monitoring, enforcement and improvement of professional standards among Surveyors Australia members and to protect consumers of professional services. In return, participating members may benefit from limits on the civil liability or damages they are required to pay. This is only if a court upholds an eligible claim.
Put simply, the Scheme is designed around the idea of improving professional standards while reducing professional risk.
How Does the Scheme Work?
Where proceedings are brought against a Scheme participant for occupational liability arising from a single cause of action, the Scheme may limit the amount of damages payable. The limitation will be to the applicable liability cap.
For this protection to apply, certain requirements must be satisfied. Among other things, the surveyor must have been a Surveyors Australia member and Scheme participant at the relevant time. They must also hold the required Professional Indemnity insurance covering the occupational liability concerned. The amount payable under that policy must also be no less than the applicable liability cap.
Importantly, the Professional Standards Scheme is not an insurance policy and does not replace Professional Indemnity insurance. Instead, the two work alongside each other as part of a broader approach to professional risk management.
What Are the Liability Caps?
The Scheme provides different monetary ceilings based on the annual fee income of the participating surveying practice.
For practices with annual fee income of up to and including $2 million, the applicable liability cap is $2 million. For annual fee income greater than $2 million and up to and including $5 million, the cap is $5 million. Practices generating more than $5 million in annual fee income have a $10 million liability cap.
In certain circumstances, a participating surveying practice can also apply for a Discretionary Higher Cap. This may be worth considering where a practice works on larger projects. In addition, this applies if the practice tenders for government contracts or has clients requiring a higher liability limit.
A Focus on Better Risk Management
Participation in the Scheme isn’t simply about limiting liability. A major part of the framework is encouraging surveying practices to proactively manage their professional risks.
Scheme participants are expected to have policies and processes in place to identify risks associated with surveying services. They must implement strategies to mitigate those risks, support compliance with professional legislation, and reduce exposure to claims and complaints. Furthermore, participants are also required to undertake specific risk management training.
This focus on prevention helps support stronger professional practices and greater confidence across the surveying profession.
Scheme Participants Can Save on ACSIS Professional Indemnity Insurance
There can also be an additional benefit for eligible surveying businesses insured through ACSIS.
Surveyors who join the Professional Standards Scheme can save up to 15% off their base rate on Professional Indemnity insurance with ACSIS.*
This provides an opportunity for eligible practices to combine the professional and risk management benefits of Scheme participation. At the same time, it offers potential savings on their Professional Indemnity insurance.
The Scheme is operated by Surveyors Australia, with risk management facilitated by ACSIS.
For surveying practices considering participation, it is another reason to look at how professional standards, risk management and appropriate insurance can work together. These can help protect the business.
Interested in Learning More?
If you would like to learn more about the Professional Standards Scheme or discuss how participation could affect your Professional Indemnity insurance with ACSIS, contact the ACSIS team on (02) 4952 5544.
Our team can help you understand the insurance considerations associated with Scheme participation. We can also explain the potential savings available to eligible ACSIS clients.
*To redeem the ACSIS insurance offer, you must be a Corporate Member of Surveyors Australia.