Professional Indemnity Insurance for Real Estate Agents

Professional Indemnity Insurance provides crucial financial protection against possible losses involved when a claim is made against you for any error or omission from your professional services. These services may include real estate sales, residential and commercial property management, valuations, auctioneering and stock and station agents.

In an industry where your reputation is such a big part of your business it is important to protect your reputation and image as a professional. The financial burden around a claim arising against can also be crippling to your business. Professional Indemnity Insurance can help cover the costs involved when some makes a claim against you and protects your business’s longevity.

If you are a real estate agent or business broker, practicing your services in the marketplace can expose not only the professional but the consumer to a certain level of risk. This level of risk needs to be managed and as of the 1st of January 2013 that’s exactly what the NSW government decided to do.

From the 1st of January 2013 the New South Wales Government passed an amendment to the Property, Stock and Business Regulation of 2003, stating that all professionals who require licences under the regulation must also have Professional Indemnity Insurance. This means as a condition of having a licence you must have and have proof of Professional Indemnity Insurance cover.

There are some key areas as a Real Estate Agent where you can be most exposed. Find below a few examples of some these areas:

• Conflicts of Interest • Underquoting or not adhering to auction rules • Property Management Failings • Errors in transaction documents as well as errors in their timing • Non-disclosure of a property or property details • Misrepresentation of a property of property details

Remember every situation is different so some of the above may or may not be applicable to your business. If you do have any questions please do not hesitate to fill out your details in our form or click here and someone will be in contact.

For further reading on Professional Indemnity Insurance for Real Estate Agents please see some of the links below: