Professional Indemnity Insurance for Real Estate Agents

Arrange a suitable PI policy fit to your needs as a real estate agent

Arrange a suitable insurance cover that fit your needs as a real estate agent. As the middle person between a potential buyer and owner of a property, a property agent faces unique risks in negotiations, sales, and market forecasts.

Professional indemnity insurance may provide cover against common claims from clients that may arise while providing your professional services. FD Beck may arrange a suitable cover fit to the specific needs of real estate agents.

What is Professional Indemnity Insurance?

Professional Indemnity (PI) insurance policy protects professionals from financial loss from claims against their business. It may be due to breach of professional duty or damage to property caused by such breach. It also extends to cover real estate agents legal costs in an allegation and any subsequent damage payable to compensate the claimant.

What May Be Covered by Professional Indemnity Insurance

Professional Indemnity insurance for real estate agents may provide cover for the following:

Civil Liability - A civil liability is a legal requirement for payment to a claimant due to a breach of civil law, tort, or contract breach. Civil liability insurance is the broadest available type of coverage and goes beyond the usual negligence or errors and omissions policies. For example, a civil liability policy may cover matters where an insured may be held liable for loss without being negligent at law.
Contractual Liabilities - When a real estate company enters a contract with a client, breach of the contractual agreement may result in claims for damages. It is the business's contractual liability to cover any document loss or property damage.
Libel and Slander - Defamation of character, either written (libel) or spoken (slander), may result in a claim. When an agent commits defamation and uses or discloses a client's confidential personal information they obtain while acting for them, a claim can be made against them for financial damages.
Unintentional Infringement for Intellectual Property - Real estate companies promote and advertise in the property market, which means they are at risk of infringing intellectual property rights, whether intentional or not.

Limitations of Professional Indemnity Insurance

The limits usually apply to bankruptcy, injuries, fines, and penalties. Any cost resulting from natural or man-made calamities that have nothing to do with a Real Estate Agents professional services, like war and hurricanes, will not be included in insurance coverage. Depending on the policy as well, it may or may not cover vicarious liability for a supervisory party and other special conditions.

Key Risks Encountered by Real Estate Agents

Being a real estate broker for either the buyer or seller is challenging. Real estate agents expose themselves to risks that can impact their personal and professional life.

Here are a few of the critical exposures real estate agents may face during business activities:

Incorrect preparation of paperwork affecting a property listing
Loss of documents, e.g., purchase agreements, proposal form, etc.
Providing misguided or less suitable professional advice on residential property for sale
Failure to follow client's instructions and act in their best interest
Negligent promotion of property
Failure to prepare the minimum level of requirements for properties for inspections
Poor property management interrupting business operation
Miscommunication between management consultant and other professionals involved

Unexpected business interruption causing delay, damage, or expenses to the client
Unauthorised use and disclosure of confidential information obtained while acting for a client
Incorrect market price reports, advice, property information, and data
Misleading potential buyers' decisions due to overlooked market trends or deceptive conduct
Failure to comply with laws and company guidelines
Failure to immediately inform a seller if, contrary to the contract, a deposit isn't received for a sale
Breaching the duty of disclosure on preexisting damages in a property

Arrange a Professional Indemnity (PI) Insurance in Australia with FD Beck for Your Peace of Mind

FD Beck has a network of insurers in Victoria and Greater Australia who can provide insurance policies suitable for real estate agents. We understand the risks involved in the industry. We can arrange professional indemnity insurance according to your requirements. Let us know your specific needs, and we will assist you with your policy and give you proper advice. You may use our online calculator to request a Professional Indemnity insurance quote.

FAQ

DOES EVERYONE IN THE REAL ESTATE INDUSTRY NEED PROFESSIONAL INDEMNITY INSURANCE?

Current legislation in Australia require real estate agents to have professional indemnity insurance. It will protect them from deep financial loss incurred by legal defence costs or investigations costs in the event of a claim.

I HAVE A BUDGET FOR PROFESSIONAL INDEMNITY COVERAGE. CAN YOU CREATE AN INSURANCE PACKAGE BASED ON MY BUDGET TO ENSURE SECURITY?

Yes, our professional insurance broker can assist you with specific insurance based on your budget and preferred level of cover, premium level, and policy period.

WHAT'S THE EASIEST WAY TO GET A QUOTE FOR REAL ESTATE AGENTS INSURANCE?

FD Beck Insurance Broker in Australia has an online insurance cover calculator available to those who wish to have an estimate before deciding on a new or combined policy or an additional premium, . It can provide a ballpark cost for real estate professional indemnity insurance and other classes of insurance policies like public liability insurance, retroactive cover, and run-off cover.

FD Beck Insurance Broker in Australia has an online coverage calculator available to those who wish to have an estimate. It can provide a ballpark cost for professional indemnity insurance and other business insurance policies like public liability insurance.