What is Agents PI Insurance?

Agents PI (Professional Indemnity) Insurance protects Agents in a range of industries including Real Estate and Property, Agriculture and Business against claims which may be made against them alleging a breach of professional duty. This can include anything from allegations of professional negligence or misleading conduct.

Who needs Agent Insurance?

It’s a requirement in NSW for the below list of Agents to have Agents Professional Indemnity Insurance.

  • Real Estate Agents,
  • Stock and Station Agents,
  • Business Agents,
  • Strata and Community Managing Agents,
  • On-Site Residential Property Managers.

This is due to the Property Stock and Business Agents Amendment (Professional Indemnity Insurance) Regulation from 2012. This was passed under the Property, Stock and Business Agents Act of 2002 which requires licensees under the Act to be insured under a professional indemnity insurance policy.

Important Tips

The above Regulation includes some minimum requirements where the Professional Indemnity policy must comply, including:

  1. A minimum level of indemnity coverage of not less than $1 million AUD per claim, and not less than $3 million AUD in the aggregate for all claims during the period of insurance.
  2. Cover for Civil Liability (including for personal injury) of the following types (and as described in the regulation) that arise in the conduct of an agency business:

 

Liability arising from any acts or omissions of the licensee that cause

  • Negligence, or
  • Unintentional misleading or deceptive conduct, or
  • Breach of professional duty, or
  • Unintentional defamation, or
  • Unintentional interference with intellectual property rights;

Vicarious liability arising from any acts or omissions of an employee, agent or other person engaged in the agency business, which causes

  • Negligence, or
  • Misleading or deceptive conduct, or
  • Breach of professional duty, or
  • Defamation (for which the claimant is not at fault), or
  • Interference with intellectual property rights (for which the claimant is not at fault), or
  • Fraud or dishonesty by the employee, agent or another person (for which the claimant is not at fault).