Why do Real Estate Agents need insurance?

Helping buyers find their dream homes; selling a much-loved family home; finding the perfect tenant. When asked to describe the work you do as a real estate agent, the list goes on, and it’s much more than simply buying and selling houses. You clients place their biggest investment into your hands to look after, but it’s equally important that someone looks out for you if something goes wrong.

Your job is big, but they say “With great power comes great responsibility”, which we believe may come with great risk. There is a chance that you don’t install signage properly or fall victim to a cyber attack. This is where having insurance in place can help ensure your business stays afloat.

When it comes to deciding which insurance you need to take out, there are a wide range of options available to you, and deciding which ones you need isn’t easy. Your broker can help you understand each policy’s coverage and their terms and conditions so you can make a decision based on what’s right for you.

What insurance do Real Estate Agents need?

Professional Indemnity

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This covers your business in the event a client alleges your professional advice or services has caused them financial loss. In some states, it is mandatory for Real Estate Agents to hold PI Insurance, but generally, we believe it’s an important cover to consider regardless of whether it’s mandatory in your state or not.¹

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Public and Product Liability

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Public Liability insurance helps protects you against claims from third parties where you are legally liable for their bodily injury, or for damage to their property.

Both instances can result in hefty losses from both a financial and reputational standpoint. Therefore, having the right insurance is critical to help make sure you’re not faced with exorbitant out of pocket costs from one single incident.¹

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Business Insurance

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Business Insurance is designed to protect your business and its assets (including equipment) against certain unexpected events. For example it can include cover for damage to business premises and/or equipment caused by fire, storm, theft and other insured events. Cover is also available for damage to money (if you keep cash on premises), and portable contents such as mobile phones and laptops.¹

A key part of this policy is Business Interruption, which can provide protection for lost revenue in the event your business is unable to operate as usual due to an insured peril.

Business Insurance is made up of a number of cover sections, and you can choose the sections that relate to your business.

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Cyber Insurance

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Cyber insurance helps protect you against certain cyber related threats, such as unauthorised access to your computer system or network resulting in loss or theft of data.

As a Real Estate Agent you may store valuable client data (such as personal and bank account details) and ID documents such as drivers licences and passports. When this type of personal information is kept digitally in your care, custody or control, it is important to consider the risks of data and security breaches. Cyber insurance may be worth considering when protecting your business against these risks.¹

Cyber insurance has now become one of the essential products a business in the real estate industry should consider.

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Management Liability

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If you own your own business, you’re likely responsible for making some big decisions. Management liability insurance is designed to cover you and your business against actual or alleged mismanagement of your business.

Management Liability insurance can also help cover Employment Practices claims made against you by current or former Employees.¹

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Be sure with an Aon broker

Talk to our specialists

Prefer to discuss before you buy? Our team of insurance specialists are here to answer all your questions over the phone.

1300 734 274

FAQs

Frequently Asked Questions

Here are answers to some commonly asked questions by Real Estate Agents.

Do Real Estate Agents need insurance?

Insurance should be a key consideration for you regardless of the size and location of your business. You work in real estate because of your passion for property – but also to earn a living. Sometimes all it takes is one unhappy client, or a severe weather event to completely bring your business operations to a grinding halt, and insurance coverage can act as your safety net to help ensure you’re not forced to close your doors due to being inundated with unexpected costs.

How much can I expect to pay for my insurances?

The cost of your insurance will depend on a number of factors, most importantly, the types of insurance policies you take out. As above, there are several different options available to you, and you’ll need to review your business’s situation in deciding 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.

Why do I need Professional Indemnity (PI) Insurance?

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 advising a landlord on which tenant to approve, your clients make big decisions based on your advice. It’s therefore possible that a certain piece of advice you provide doesn’t end up being the best outcome and your client takes action against you for financial loss they subsequently suffer. This is where PI Insurance becomes crucial – it will help you cover the legal cost of your representation in court, as well as the financial compensation you may be required to pay.

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What’s the difference between Public Liability (PL) and Professional Indemnity (PI)?
It’s not uncommon to get confused about Professional Indemnity Insurance, and how this differs from Public Liability. In a way, the two are slightly similar in that they’re both designed to protect you against claims from clients or third parties by covering the cost of your legal fees and compensation you may be required to pay. However, the difference is in the type of incidents they cover – PI can protect you against claims where clients allege the professional service or advice you provided caused them economic loss, whereas PL covers you against claims alleging injury or damage arising out of your business activities.

I have a contractor employed in my agency, are they covered under my insurances?
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 recommends that a Contractor or Sub-Contractor should hold their own insurance, covering their own liability.

I run my business from home, do I need Public Liability Insurance (PL)?
Working from home doesn’t completely rid your business of liability risks. Even if you carry out most of your business activities from home, it’s likely you visit properties for inspections and host open homes, all of which involve members of the public. Claims of personal injury or property damage can surface unexpectedly (such as slips and falls, enthusiastic pets or more serious events like drownings in unattended pools). PL should always be a key part of your coverage irrespective of where you work.

What is retroactive cover? How is it different from run-off cover?
Retroactive cover is protection for claims which are based on services or advice you provided before the start date of your current PI insurance policy. When taking out PI 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.

What’s the difference between a home building policy and a landlord policy?
A traditional building insurance policy covers damage to property caused by a specified peril, such as storm; fire; and damage caused by theft or attempted theft. Landlord insurance has been designed to cover property owners for risks faced by a landlord, such as rental default and public liability.

Does Professional Indemnity (PI) cover me for commission disputes with my contractors?
Coverage available under any policy is always determined by the terms and conditions of the Policy in question. Having said that commission disputes with contractors are generally not covered as commission disputes are more in keeping with commercial losses not traditionally covered by insurance.

Will Professional Indemnity or Public Liability cover me if I want to take legal action against someone?
No, these insurances are only designed to cover your legal representation costs if a client or a third party takes legal action against you.

Insurance

Other covers to consider

View other insurance policies arranged through Aon for Real Estate Agents.

Workers’ Compensation

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Workers’ Compensation Insurance covers an Employer’s liability to a worker for injuries arising out of their employment., Workers’ Compensation Insurance is mandatory but the requirements and legislation vary between the different States and Territories so you should check before making a decision.¹

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Resident Unit Manager’s Insurance

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This policy combines both Professional Indemnity and Public Liability into the one combined policy for any resident unit managers. Some policies also provide Statutory Liability cover which can cover your defence costs if an action is brought against you alleging a statutory breach.¹

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Landlord Insurance

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Landlord insurance typically provides a property owner with options to cover buildings and/or contents, as well as rent default where the property is tenanted, malicious damage by tenants; loss of rent and damage from specified events.. Landlord insurance generally includes Public Liability cover to protect you against claims where your negligence caused property damage or injury to your tenants, their visitors, or any other third party.¹

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Renter’s Insurance

1800 105 900

Also known as Contents Insurance, this policy is taken out by tenants to insure their belongings against listed events such as theft, storm or fire. Although this may not impact your business directly, it is a type of coverage your tenants might not know they need, so when you’re signing on a new tenant, it may be worth mentioning Contents Insurance to them.¹

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Residential Strata Insurance

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This is designed to cover strata titled properties and complexes such as apartments and townhouses. It not only covers the physical structure of the building, but also includes other covers such as theft of contents from common areas, and Public Liability for incidents which occur on common areas.¹

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Why Aon?

Real Estate Agents Insurance. Easy.

Easy to Understand

Easy to digest information about what insurances your business needs and buy online
Or it’s an easy call to one of our experienced, friendly brokers on 1300 734 274

Easy to Buy

Quick quotes available online
Purchase in just a few clicks
Options available to pay monthly

Easy to Manage

Adjust your policy anytime you require and manage your renewals with a quick call
Request certificates of insurance quickly and easily
Aon can assist you in filing complex claims

Why choose Aon for Real Estate Agent Insurance?

When it comes to insurance for Real Estate Agents, there are a few options available to you, and deciding which ones you need might not be easy. Aon is committed to making life easier for you by arranging insurance that’s easy to understand, buy and manage, so you can get quotes and take out a policy online in just a few clicks. Or if you do need help, our team of friendly experienced brokers are a phone call away to help you understand what insurances you may or may not need, but more importantly, why; helping give you confidence that you’re making a better decision for you and your business.

Aon is a proud partner of the Real Estate Institute of Australia (REIA), the Real Estate Institute of Queensland (REIQ), the Real Estate Institute of Western Australia (REIWA), the Real Estate Institute of Victoria (REIV) and the Real Estate Institute of Northern Territory (REINT).

Aon Real Estate Partners

Proud Partners

Providing specialist insurance solutions & risk education to our partners.

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¹Subject to full policy terms, conditions and exclusions.

The Real Estate Agents Professional Indemnity insurance is arranged by Aon Risk Services Australia Limited (Aon) ABN 17 000 434 720 AFSL 241141 as agent for the insurer Insurance Australia Limited (ABN 11 000 016 722) trading as CGU Insurance (CGU). If you purchase this insurance, we will receive a commission that is a percentage of the premium. Further information can be provided upon request.

Business Insurance for Real Estate Agents is arranged by Aon Risk Services Australia Limited (Aon) ABN 17 000 434 720 AFSL 241141 as agent for the insurer Zurich Australian Insurance Limited (ABN 13 000 296 640 AFSL 232507). If you purchase this insurance, we will receive a commission that is a percentage of the premium. Further information can be provided upon request.

Resident Unit Manager’s Insurance is arranged by Aon Risk Services Australia Limited (Aon) ABN 17 000 434 720 AFSL 241141 as agent for the insurer Insurance Australia Limited (ABN 11 000 016 722) trading as CGU Insurance (CGU). If you purchase this insurance, we will receive a commission that is a percentage of the premium. Further information can be provided upon request.