Why do Real Estate Agents need insurance?
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.
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
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.
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.
Management Liability insurance can also help cover Employment Practices claims made against you by current or former Employees.1
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.
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
Providing specialist insurance solutions & risk education to our partners.
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.