The cost of your insurance will depend on a number of factors, most importantly, the types of insurance policies you take out. There are several options available to you, and you’ll need to review your business’s situation to decide which covers to take out. It might be tempting to opt for the minimum level of cover to save money in the short term, but this may not be offering you enough protection for the wide range of risks your business faces. Speaking to an insurance broker can help you understand your risks and allow you to make an informed decision.

Professional Indemnity Insurance is designed for any business which is involved in providing professional advice or services to clients, and as a real estate agent, this is your core service. Whether you’re advising a seller of a property value, or a landlord on which tenant to approve, your clients make big decisions based on your advice. It’s therefore possible that advice you provide doesn’t end up with the best outcome, and your client takes action against you for financial loss they subsequently suffer. This is where PI insurance becomes crucial – it may help you cover the legal cost of your representation in court, as well as the financial compensation you may be required to pay.

Professional Indemnity Insurance provides cover for claims made against your business by third parties claiming that your professional services or advice caused them loss.

Public Liability Insurance covers the costs associated with a third party’s claim for personal injury or property damage or due to products that are sold or supplied through your business.

Professional Indemnity Insurance is written on a claims-made basis. This means it will only cover claims made while the policy is in force. The claims-made basis of Professional Indemnity insurance means it is very important that any circumstances which may give rise to a claim, or any claim itself, be notified to the insurer as soon as possible after they occur. For example, if a client complains to you about your advice, your insurer should be notified at that time, rather than wait until a formal claim is made. If that client does decide to take legal action against you at a later date, you may not be entitled to cover if the insurer wasn't notified previously.

This will vary based on your specific insurance policy. Some insurers exclude the actions of contractors completely from their coverage.

Generally, if you arrange Professional Indemnity Insurance for Real Estate Agents through Aon, the policy will cover your vicarious liability for work carried out by your contractors but may not cover the Contractor for their own liability. Aon generally suggests that a Contractor or Sub-Contractor should hold their own insurance, covering their own liability.

Retroactive cover is protection for claims which are based on services or advice you provided before the start date of your current Professional Indemnity Insurance policy. When taking out Professional Indemnity Insurance cover, you may be asked to nominate a retroactive cover date or the insurer may impose one.

Run-off insurance provides coverage for claims made against you after your business ceases operating, or after you retire, based on advice or services you provided whilst in business. Depending on the policy, you may be required to pay additional premium to activate run-off cover.

You can make changes to your policy by contacting a member of our team on 1300 734 274 between 8:30am and 5:00pm. Remember that some changes can have an impact on your premium, so if this is the case, you may be required to pay an additional premium.

Payment for your insurance policies are generally due annually. A monthly payment option may be available through a premium funding provider. If you choose to take out a premium funding contract there will be charges (such as interest and/or fees) in addition to the premium you pay throughout the year. See the premium funding terms and conditions for full details¹.